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In today’s “Crypto for Advisors” newsletter Parshant K. Kher from EY-Parthenon discusses findings from their recent stablecoin survey and highlights the optimism in the industry since the introduction of the GENIUS Act.
Then in the “Ask an Expert” section 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 Crypto Connect event on Thursday, October 23rd. Find out more.
Full speed ahead to accept Stablecoins
With the GENIUS Act in the rearview mirror, research shows that cost savings and liquidity are taking the use of stablecoins to the next level.
Long a quiet cornerstone of the digital asset economy, stablecoins are now making mainstream headlines as adoption among financial institutions accelerates. Stablecoins are predicted to account for 5-10% of global transactions by 2030 – representing an estimated value of $2.1 trillion to $4.2 trillion – underscoring their growing role in global trade.
In a financial environment built on trust, floating and multi-day clearing cycles, the promise of instant settlement and reduced transaction costs makes stablecoins a compelling payment solution. Among the most promising use cases are cross-border B2B transactions, where early adoption is gaining momentum – especially as companies deal with rising costs caused by trade and customs uncertainties.
Boosted by the passage of the GENIUS Act, stablecoin adoption is skyrocketing with a market cap of 66% to approx. 300 billion dollars in the last 12 months. To better understand market sentiment, the EY-Parthenon team surveyed financial institutions and large corporations regarding their awareness, adoption and future plans for stablecoins. The findings confirm that the regulatory clarity of the GENIUS Act reinforces an already solid foundation of interest and perceived business value. Notably, even before the legislation was fully enacted, 100% of respondents were familiar with stablecoins – and 65% expected growing interest over the next six to 12 months.
Cross-border payments contribute to cost savings
Cross-border payments have emerged as a major use case among corporate users of stablecoins – and the cost savings are hard to ignore. In fact, 41% of respondents reported savings of more than 10% compared to traditional payment methods. The appeal of stablecoins has spread across both incoming and outgoing transactions, thanks to a number of advantages. While lower transaction costs came first, speed and better liquidity rounded out the top three motivating factors.
Despite growing enthusiasm, regulatory uncertainty remains a key obstacle. During the Senate debate on the GENIUS Act just prior to its passage, 73% of respondents identified legislative clarity as a primary concern. With legislation already in place, we expect confidence to grow and innovation to accelerate.
Banks plan their course for participation
While only 15% of financial institutions currently offer stablecoin services to clients, interest is growing rapidly — 57% are actively exploring opportunities, with 53% citing client demand as the primary driver. The most common areas of focus include on/off-ramp services and digital wallet infrastructure, with only 16% of firms (and 26% of banks) considering issuing their own crypto-backed stablecoin.
Most financial institutions are planning a hybrid approach to building their stablecoin capabilities. More than half (53%) expect to combine in-house infrastructure with partner vendors, and 46% expect to rely on third-party wallet or escrow providers to deliver services.
The motivations for adoption closely mirror those of business users. Faster settlement times and reduced costs were cited by 65% of respondents, while 59% saw stablecoins as a path to new revenue streams and 52% saw them as a way to differentiate their payment strategies in an increasingly competitive environment.
Scope and wider impact
Financial institutions are increasingly optimistic about its long-term potential, especially under the GENIUS Act, which mandates that stablecoins be backed by real assets. US Treasuries are expected to play a central role in this framework, creating a new demand channel for US debt and potentially strengthening the dollar’s dominance as a 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 cost savings, speed and liquidity benefits of stablecoins, their use in cross-border transactions is likely to expand significantly, unlocking broader innovation in the digital asset ecosystem. Financial institutions and their corporate clients can directly and indirectly benefit from the continued development of stablecoin infrastructure and services.
– Prashant K. Kher Senior Director, Strategy Group EY-Parthenon
Ask an expert
Q: What are stablecoins and how do they stay tied to traditional currencies?
Stablecoins are digital tokens designed to maintain a constant value that are usually tied to something familiar like the US dollar. Their goal is to combine the speed and accessibility of cryptocurrencies with the stability of real-world money.
There are several kinds of stablecoins: some are backed by real dollars and short-term US Treasuries (like USDC or Tether), others are backed by cryptographic reserves, and a few rely purely on algorithms – even if they struggle. As of mid-2025, stablecoins represent more than $250 billion in market value, with Tether alone accounting for about 60% of that share (The Block, 2025).
In short: stablecoins make it possible to use “digital dollars” on blockchain networks without worrying about the wild price fluctuations of regular cryptocurrencies.
Q: Why are stablecoins becoming such a big deal for finance and commerce?
Stablecoins are changing the way money moves. They allow people and businesses to send US dollar equivalent values around the world in seconds without the need for banks, wire transfer fees or days of waiting for a statement.
They are now used to trade cryptocurrencies, settle cross-border transactions, and even move funds between companies and payment systems.
In 2024, stablecoins were used in transactions worth over 27 trillion dollarssurpassing PayPal’s annual volume (World Economic Forum, 2025). For emerging markets, they also provide access to a more stable currency when local money loses value.
In short, stablecoins become 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 actually backed by high-quality, liquid assets that can be exchanged 1:1 for real dollars. When reserves are not completely transparent, even small doubts can cause panic and mass withdrawals.
Regulators are now stepping in. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto rules, particularly when it comes to reserve transparency and cross-border risk (Reuters, 2025). In response, countries are putting in place stricter frameworks: the US is proposing licenses and fully covered reserves; the UK central bank will only lift its stablecoins when it is confident they pose no threat; and the EU is pushing to close regulatory loopholes.
In short, regulators are tightening oversight to ensure that stablecoins are as safe and reliable as traditional money – without losing the innovation that makes them so useful.
– Kieran Mitha, Marketing Coordinator, MeetAmi Innovations Inc.,
