In today’s “Crypto for Advisors” newsletter, EY-Parthenon’s Parshant K. Kher details the results of his recent stablecoin survey, highlighting the sector’s optimism since the launch of the GENIUS Act.
Next, in “Ask an Expert,” Kieran Mitha answers questions about what stablecoins are, use cases, and regulations.
Thanks to our newsletter sponsor this week, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.
–Sarah Morton
Full speed ahead for Stablecoin adoption
With the GENIUS Act in the rearview mirror, research shows that cost savings and liquidity will drive the next stage of stablecoin usage.
Long a cornerstone of the digital asset economy, stablecoins are now making headlines as their adoption accelerates among financial institutions. Stablecoins are expected to account for 5-10% of global transactions by 2030 – representing an estimated value of between $2.1 trillion and $4.2 trillion – highlighting their growing role in global commerce.
In a financial landscape built on trust, floating, and multi-day clearing cycles, the promise of instant settlement and lower transaction costs makes stablecoins an attractive solution for payments. Among the most promising use cases are B2B cross-border transactions, where early adoption is gaining traction, especially as businesses face rising costs driven by trade and pricing uncertainties.
Supported by the passage of the GENIUS Act, stablecoin adoption is booming, with market capitalization increasing by 66% to approx. $300 billion in the last 12 months. To better understand market sentiment, the EY-Parthenon team surveyed financial institutions and large corporations on their awareness, adoption, and future plans for stablecoins. The results confirm that the regulatory clarity of the GENIUS Act reinforces an already strong foundation of interest and perceived business value. Notably, even before the legislation was fully enacted, 100% of respondents were aware of stablecoins – and 65% anticipated growing interest over the next six to 12 months.
Cross-border payments generate savings
Cross-border payments have become the primary use case among enterprise stablecoin users – and the cost savings are hard to ignore. In fact, 41% of respondents said they saved more than 10% compared to traditional payment methods. The appeal of stablecoins extends to both inbound and outbound transactions, thanks to a series of advantages. While lower transaction costs top the list, speed and improved liquidity round out the top three motivators.
Despite growing enthusiasm, regulatory uncertainty remains a major obstacle. During the Senate debate on the GENIUS Act just before its passage, 73% of respondents reported regulatory clarity as a top concern. With the legislation now in place, we hope that confidence will increase and innovation will accelerate.
Banks chart a path to participation
While only 15% of financial institutions currently offer stablecoin services to their customers, interest is growing rapidly: 57% of them are actively exploring opportunities, with customer demand cited as the main driver by 53% of them. The most common areas of focus include providing access and egress services and digital wallet infrastructure, with only 16% of companies (and 26% of banks) considering issuing their own fiat-backed stablecoin.
Most financial institutions are considering a hybrid approach to growing their stablecoin capabilities. More than half (53%) plan to combine in-house infrastructure with vendor partnerships, and 46% plan to rely on third-party wallet or custody providers to provide services.
Adoption motivations closely mirror those of enterprise users. Faster settlement times and reduced costs were cited by 65% of respondents, while 59% see stablecoins as a path to new revenue streams and 52% see them as a way to differentiate their payment strategies in an increasingly competitive landscape.
Scale and wider impact
Financial institutions are increasingly optimistic about their long-term potential, especially under the GENIUS Act, which requires stablecoins to be backed by real-world assets. U.S. Treasuries are expected to play a central role in this framework, creating a new demand channel for U.S. debt and potentially strengthening the dollar’s dominance as the global reserve currency through Treasury-backed stablecoins.
Conclusion
With the GENIUS Act providing a framework and path to long-awaited regulatory clarity, the prospects for stablecoin adoption are strong. As organizations recognize the benefits of stablecoins in terms of cost savings, speed and liquidity, their use in cross-border transactions is likely to expand significantly, paving the way for broader innovation in the digital asset ecosystem. Financial institutions and their corporate clients stand to benefit, directly and indirectly, from the continued evolution of stable infrastructure and services.
– Prashant K. Kher Senior Director, EY-Parthenon Strategy Group
Ask an expert
Q. What are stablecoins and how do they remain linked to traditional currencies?
Stablecoins are digital tokens designed to hold a stable value, which are usually pegged to something familiar like the US dollar. They aim to combine the speed and accessibility of crypto with the stability of real money.
There are several types of stablecoins: some are backed by real dollars and short-term US Treasuries (like USDC or Tether), others are backed by cryptocurrency reserves, and a few rely solely on algorithms – although these have struggled. As of mid-2025, stablecoins accounted for over $250 billion in market value, and Tether alone accounts for around 60% of that share (The Block, 2025).
In short: stablecoins make it possible to use “digital dollars” on blockchain networks without worrying about wild fluctuations in the prices of classic cryptocurrencies.
Q. Why are stablecoins becoming so important for finance and commerce?
Stablecoins are changing the way money moves. They allow individuals and businesses to send US dollar equivalent value around the world in seconds, without the need for banks, wire transfer fees or days of waiting for settlement.
They are now used to exchange cryptocurrencies, settle cross-border transactions and even move funds between businesses and payment systems.
In 2024, stablecoins have been used in transactions worth more than 27 trillion dollarsexceeding the annual volume of PayPal (World Economic Forum, 2025). For emerging markets, they also provide access to a more stable currency when the local currency loses value.
In short, stablecoins are becoming the connective tissue between traditional finance and the blockchain economy – fast, borderless and easy to use.
Q. What is the biggest risk to stablecoins and how are regulators responding?
The main risk for stablecoins is trust and whether each token is truly backed by high-quality liquid assets that can be exchanged 1:1 for real dollars. When reserves are not fully transparent, even small doubts can cause panic and mass withdrawals.
Regulators are now intervening. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto rules, particularly regarding reserve transparency and cross-border risk (Reuters, 2025). In response, countries are introducing stricter frameworks: the United States offers fully guaranteed licenses and reserves; the UK central bank will only raise its cap on stablecoins if it is convinced they pose no threat; and the EU is working to close regulatory gaps.
In short, regulators are increasing their oversight to ensure that stablecoins are as safe and reliable as traditional currency – without losing the innovation that makes them so useful.
– Kieran Mitha, Marketing Coordinator, MeetAmi Innovations Inc.,
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