Stablecoin Application Guide: New Opportunities in Financial Technology and Banking

In the past six months, topics related to stablecoins have frequently made headlines. From bank executives to payment company product managers, and even government officials, decision-makers from various sectors are increasingly focusing on and discussing the advantages of stablecoins.

The four core advantages of stablecoins include:

• Instant settlement ( significantly reduces working capital requirements )
• Extremely low transaction costs ( especially compared to the SWIFT system )
• Accessible globally ( operates around the clock, requiring only an internet connection )
• Programmability ( drives currency ) through extended encoding logic.

These advantages are precisely the benefits of stablecoins that are repeatedly emphasized in various reports and interviews. While the argument "why stablecoins are needed" is easy to understand, "how to apply stablecoins" is relatively complex—currently, there is little content that specifically elaborates on how to integrate stablecoins into existing business models.

Based on this, this article will be divided into four parts to explore the application of stablecoins in different business models. Each part will analyze in detail the value-creating aspects of stablecoins, specific implementation paths, and schematic diagrams of the restructured product architecture.

After all, what we truly pursue is the large-scale application of stablecoins -- enabling real business scenarios to achieve the scaled use of stablecoins. I hope this article can contribute to realizing this vision. Now, let's delve into how non-crypto enterprises can utilize stablecoins.

Consumer-oriented Fintech Bank

For consumer-facing digital banks, the key to enhancing enterprise value lies in optimizing three metrics: user scale, single user revenue ( ARPU ), and user retention rate. Stablecoins can currently directly assist with the first two - by integrating partners' infrastructures, digital banks can launch stablecoin-based remittance services, which can both reach new user groups and provide existing customers with additional revenue streams.

In the context of digitalization and globalization trends, the target market of today’s fintech often has multinational characteristics. Some digital banks position themselves as providers of cross-border financial services, while others treat it as a functional module to enhance ARPU. For fintech startups focusing on expatriates and specific ethnic groups, remittance services are a fundamental need of the target market. These types of digital banks will benefit from stablecoin remittances.

Compared to traditional remittance services, stablecoins can achieve faster ( instant transfers vs over 2-5 days ) and are cheaper ( with rates as low as 30 basis points vs over 300 basis points ) for settlement. This explains why in certain remittance channels, the penetration rate of stablecoin payments has reached 10-20%, and the growth momentum continues.

In addition to generating new revenue, stablecoins can also optimize costs and user experience, especially as internal settlement tools. Many practitioners are well aware of the pain points of weekend settlements: bank closures lead to a two-day settlement delay. Digital banks, which pursue real-time services and ultimate experiences, have to fill the gap by providing operating capital loans, which incurs opportunity costs for funds and may force companies to seek additional financing. The instant settlement and global accessibility features of stablecoins completely resolve this issue.

Therefore, it is not surprising that many consumer-facing fintech companies are laying out their plans for stablecoins. So, if you work in a consumer bank or fintech company, how can you utilize stablecoins?

After introducing stablecoins into this business model, the practical plan is as follows.

real-time 24/7 settlement

• Use mainstream stablecoins for instant settlement ( including holidays )
• Integrated wallet service providers/coordinators, bridging the bank system with blockchain's USD/stablecoin flow.
• Connect with fiat channel service providers in specific regions to achieve B2B/B2B2C exchange between stablecoins and fiat currency.

fill the gap of fiat settlement

• During the weekend, using stablecoin as a temporary substitute for fiat currency, to complete reconciliation after the banking system is restarted.
• Collaborate with suppliers to build internal stablecoin settlement loops between customer accounts and enterprises.

funds from the counterparty are instantly in place

• Quickly transfer funds to exchanges/partners through the above solutions or liquidity partners, bypassing the ACH/wire transfer process.

Automatic Rebalancing of Multinational Entities

• When fiat channels are closed, fund allocation between business units/subsidiaries is achieved through on-chain stablecoin transfers.
• The headquarters can leverage this to establish an automated and scalable global fund management system.

In addition to these basic functions, a new generation of banks can be envisioned that is entirely based on the concept of "all-weather, instant, and composable finance." Remittance and settlement are just the starting point, followed by programmable payments, cross-border asset management, tokenization of stocks, and other scenarios. Such enterprises will win the market with an exceptional user experience, a rich product matrix, and a lower cost structure.

Commercial Banks and Corporate Services(B2B)

Currently, business owners in many emerging markets face significant barriers when trying to open USD accounts at local banks. Typically, only companies with large transaction volumes or special relationships can qualify—this also depends on the bank having sufficient USD liquidity. On the other hand, local currency accounts force entrepreneurs to bear both banking risks and government credit risks, necessitating constant monitoring of exchange rate fluctuations to maintain operational capital. When making payments to overseas suppliers, business owners also have to pay high fees for converting local currency to USD and other mainstream currencies.

Stablecoins can significantly alleviate these frictions, and forward-looking commercial banks will play a key role in their application process. Through bank-custodied compliant digital dollar platforms, enterprises can achieve:

• Hold multiple currency balances without the need to establish multiple banking relationships.
• Cross-border invoice settlement in seconds ( bypassing traditional agency networks )
• Stablecoin deposits earn interest

Commercial banks can use this to upgrade basic checking accounts to a global multi-currency fund management solution, offering speed, transparency, and financial resilience that traditional accounts cannot match.

After introducing stablecoins into this business model, the practical plan is as follows.

Global USD/Multi-Currency Account Services

• Banks custody stablecoins for enterprises through partners.
• Reduce startup and operational costs (, such as reducing licensing requirements and exempting FBO accounts ).

High-yield products supported by high-quality U.S. Treasury bonds

• Banks can offer returns at the federal funds rate level of about 4%, with credit risk significantly lower than that of local banks.
• Need to connect with stablecoin suppliers or tokenized government bond partners.

( real-time 24/7 settlement

See the previous section on the consumer finance sector plan.

) The global application scenarios we are optimistic about.

• Importers make instant payments in USD, and overseas exporters release goods immediately.
• CFOs can allocate funds in real-time across multiple countries, breaking free from the delays of correspondent banking systems, making banking services for super-large multinational corporations possible.
• Business owners in high-inflation countries anchor their balance sheets in US dollars.

Payroll Service Provider

For payroll platforms, the greatest value of stablecoins lies in serving employers who need to pay wages to employees in emerging markets. Cross-border payments, or making payments in countries with underdeveloped financial infrastructure, can impose significant costs on payroll platforms—these costs may be absorbed by the platform itself, passed on to employers, or begrudgingly deducted from contractor payments. For payroll service providers, the most easily achievable opportunity is to open stablecoin payment channels.

Cross-border stablecoin transfers from the US financial system to contractors' digital wallets are nearly costless and instant, depending on the fiat entry configuration. While contractors may still need to complete fiat exchanges on their own, which will incur costs, they can receive payments anchored to the world's strongest fiat currencies instantly. Multiple pieces of evidence indicate that demand for stablecoins is surging in emerging markets:

• Users are willing to pay an average premium of about 4.7% to obtain US dollar stablecoins.
• In some countries, this premium can be as high as 30%.
• Stablecoins are becoming increasingly popular among contractors and freelancers in regions like Latin America.
• Focused on applications for freelancers, its stablecoin usage and user growth are experiencing exponential growth.
• More importantly, a user base has already been established: over the past 12 months, more than 250 million digital wallets have been actively using stablecoins, and more people are willing to accept stablecoin payments.

In addition to speed and cost savings for end users, stablecoins offer numerous benefits to enterprise clients using payroll services, such as the pay-as-you-go client ###. First, stablecoins are significantly more transparent and customizable. According to a recent fintech survey, 66% of payroll professionals lack the tools to understand their actual costs with banks and payment partners. Fees are often opaque and processes confusing. Secondly, the current payroll payment execution process often involves a lot of manual operations that consume resources in the finance department. In addition to the payment execution itself, there are a series of other matters to consider, from accounting to taxation to bank reconciliation, and stablecoins are programmable, with built-in ledgers ### and blockchain (, which significantly enhances automation capabilities ), such as batch timed payments ( and accounting capabilities ), like automatic smart contract calculations, withholdings, and record-keeping systems (.

In that case, how should the salary platform enable stablecoin payment functionality?

) real-time 24/7 settlement

The previous text has covered the relevant content.

( closed-loop payment

• Collaborate with a stablecoin-based card issuance platform, allowing end users to directly spend stablecoins, thereby fully inheriting their speed and cost advantages.
• Collaborate with wallet providers to offer stablecoin savings and yield opportunities

) Accounting and Tax Reconciliation

Utilizing the immutable ledger characteristics of blockchain, automatically synchronize transaction records to accounting and tax systems through API data interfaces, achieving automation of withholding and payment, bookkeeping, and reconciliation processes.

( programmable payments and embedded finance

• Utilize smart contracts to achieve automatic batch payments and programmable payments based on specific conditions ) such as bonuses (. Can cooperate with relevant platforms or directly use smart contracts.
• Connect to DeFi foundational protocols to provide wage-based financing services in an affordable and globally accessible manner. In certain countries/regions, it is possible to bypass local banking partners that are typically cumbersome, closed, and expensive.

Based on the above plan, let us further elaborate on the specific implementation methods:

A payroll processing platform that supports stablecoins collaborates with US fiat currency gateways to connect bank accounts with stablecoins. Before the payment date, funds are transferred from the client company's account to the on-chain stablecoin account ), which can be custodized by relevant institutions ###. Payments are fully automated and broadcast in bulk to all contractors worldwide. Contractors instantly receive USD stablecoins, which can be spent using Visa cards that support stablecoins or saved in on-chain accounts through tokenized government bonds. With this new architecture, the overall system costs significantly decrease, the coverage of contractors expands greatly, and the level of system automation is greatly enhanced.

![Stablecoins are so popular, which Web3 business scenarios are suitable for introduction?]###https://img-cdn.gateio.im/webp-social/moments-837876e552b9b18d710b9e2f91bcbeb1.webp###

Issuing Institution

Many companies are currently generating core revenue through card issuance. For example, a recently listed company has achieved over $1 billion in annual revenue solely from transaction fees in the U.S. market. Despite establishing a large business in the U.S., its partnerships with payment giants, banking relationships, and technical architecture hardly aid in expanding into overseas markets.

Traditional card issuance requires applying for direct licenses from payment giants country by country or collaborating with local banks. This cumbersome process severely hinders companies from expanding across regions. Taking a listed company as an example, after operating for over 10 years, it only began overseas expansion in the last 3 years.

In addition, the issuing institutions need to pay a deposit to the payment giants to prevent default risks. The payment giants promise to merchants: even if the bank or fintech company goes bankrupt, cardholders' payments will still be honored. The payment giants will review the transaction volume from the last 4-7 days to calculate what the issuer needs.