Stablecoin Application Guide: How Non-Cryptocurrency Businesses Can Introduce Stablecoins

In the past six months, news related to stablecoins has rapidly increased. From executives of major banks to product managers at payment companies, and even government officials, an increasing number of decision-makers are beginning to pay attention to and recognize the value of stablecoins.

The core advantages of stablecoins include:

• Real-time settlement significantly reduces operating capital requirements
• Extremely low transaction fees, especially compared to the SWIFT system.
• Available globally, operating 24/7, just need to be online
• Programmable, extend currency functionality through code logic

These advantages have been repeatedly emphasized in various reports and interviews. However, while the value of stablecoins is easy to understand, how to specifically apply them is more complex. Currently, there is very little content that elaborates on how fintech companies or banks can integrate stablecoins into their existing business models.

Therefore, we have written this advanced guide to provide a starting point for non-encryption enterprises exploring stablecoin applications. The following will be divided into four chapters, corresponding to different business models, analyzing the value that stablecoins can create, the specific implementation paths, and the restructured product architecture.

Our ultimate goal is to promote the large-scale application of stablecoins in real business. We hope this article can contribute to the realization of this vision. Next, let us delve into how non-encryption enterprises can utilize stablecoins.

Consumer-Focused Fintech Bank

For C-end digital banks, the key to enhancing enterprise value lies in optimizing user scale, single user revenue ( ARPU ), and user retention rate. Currently, stablecoins can directly assist in the first two metrics - by integrating partner infrastructure, digital banks can launch remittance services based on stablecoins, which can reach new user groups and create additional revenue for existing customers.

Under the dual trends of digitalization and globalization, today's fintech target markets are often multinational. Some digital banks position cross-border finance as their core focus (, such as Revolut ), while others treat it as a functional module to enhance ARPU (, like Nubank ). For fintech startups focusing on expatriate communities, remittances are a necessity. These banks will benefit from remittances made with stablecoins.

Compared to traditional remittances, stablecoin settlements are faster ( seconds vs several days ) and cheaper ( as low as 0.3% vs over 3% ). This explains why in certain remittance corridors ( such as the US-Mexico ), the penetration rate of stablecoin payments has reached 10-20% and continues to grow.

In addition to creating 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 settlement delays. Digital banks pursuing real-time services have to fill the gap by providing operating capital loans, which incurs funding costs and may also force additional financing. The instant settlement and global reach characteristics of stablecoins completely solve this problem.

Therefore, it is not surprising that consumer financial technology companies like Revolut are actively developing stablecoins. If you work in a consumer bank or financial technology company, how can you use stablecoins?

After the introduction of stablecoin 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 provider, connecting the banking system with blockchain for USD/stablecoin flow
• Connect with fiat channel service providers in specific areas to achieve B2B/B2C exchange of stablecoins and fiat.

Fill the gap of fiat currency settlement

• During the weekend, use stablecoin as a temporary substitute for fiat currency, and reconcile after the banking system is restarted.
• Can collaborate with suppliers to build internal stablecoin settlement loops between customer accounts and enterprises.

Counterparty funds in place instantly

• By using the above solutions or liquidity partners, bypass traditional processes to quickly allocate funds.

Cross-border entities automatic rebalancing

• 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, scalable global fund management system.

In addition to these basic functions, a new generation of banks based on the concept of "always-on, instant, and composable finance" can be envisioned. Remittances and settlements are just the starting point, and subsequently, programmable payments, cross-border asset management, and stock tokenization scenarios will emerge. Such enterprises will win the market with an exceptional experience, a rich product offering, and a low-cost structure.

Commercial Banks and Enterprise Services(B2B)

Currently, many emerging market business owners find it very difficult to open dollar accounts in local banks. Usually, only large clients qualify, and it is contingent on the bank having sufficient dollar liquidity. Meanwhile, local currency accounts force businesses to bear both bank risks and government credit risks. When making payments to overseas suppliers, they also have to pay high foreign exchange fees.

Stablecoins can significantly alleviate these issues, and visionary commercial banks will play a key role in their application. Through a bank-custodied compliant digital dollar platform, businesses can achieve:

• Hold multiple coin balances without the need for multiple banking relationships.
• Cross-border invoice settlement in seconds ( bypasses traditional agency network )
• Stablecoin deposits earn interest

Commercial banks can use this to upgrade their basic checking accounts to a global multi-currency fund management solution, providing 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 a return of approximately 4% on the federal funds rate level (, and the credit risk is 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 consumer finance plan

Promising Global Application Scenarios

• Importers make USD payments in seconds, overseas exporters release goods instantly.
• Corporate finance reallocates funds in real-time across multiple countries, eliminating delays in the correspondent banking system.
• Business owners in high-inflation countries anchor their balance sheets to the US dollar.

Payroll Service Provider

For payroll platforms, the greatest value of stablecoins lies in serving employers who pay salaries to employees in emerging markets. Cross-border payments or payments in countries with underdeveloped financial infrastructure can impose significant costs on payroll platforms. For payroll service providers, the most achievable opportunity is to enable stablecoin payment channels.

Cross-border stablecoin transfers from the U.S. financial system to contractors' digital wallets are almost costless and instant. While contractors may still need to exchange fiat currency themselves, which may incur fees, they can receive payments instantly anchored in strong fiat currency. Multiple pieces of evidence indicate a surge in demand for stablecoins 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 contractor groups in regions such as Latin America.
• Applications focused on freelancers such as Airtm have seen exponential growth in the usage of their stablecoin.
• Over 250 million digital wallets actively using stablecoins in the past 12 months.

In addition to speed and cost advantages, stablecoins also offer many benefits to enterprise clients. Firstly, stablecoins are more transparent and customizable. Secondly, the programmability and built-in ledger of stablecoins significantly enhance automation and accounting capabilities.

How should a payroll 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 to allow end-users to directly spend stablecoins.
• Partnering with wallet providers to offer stablecoin savings and yield opportunities

Accounting and Tax Reconciliation

• Utilize the characteristics of blockchain to automatically sync transaction records to accounting and tax systems via API.

Programmable Payments and Embedded Finance

• Use smart contracts to achieve automated batch payments and programmable payments based on specific conditions.
• Connect to DeFi foundational protocols, providing wage-based financing services.

Implementation details: A payroll platform that supports stablecoins collaborates with U.S. 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. Payments are fully automated and broadcast in batches to global contractors. Contractors instantly receive USD stablecoins, which can be spent using Visa cards that support stablecoins or saved in tokenized government bonds in their on-chain accounts.

Issuing Institution

Traditional card issuing requires applying for licenses in each country or cooperating with local banks, which severely hinders cross-regional expansion. In addition, card issuers need to pay large collateral deposits to card organizations, which constitutes a heavy burden.

Stablecoins have completely changed the possibilities of the issuance business:

1. Cultivate a new type of issuance platform, enterprises can utilize their major membership with Visa to provide global issuance services through stablecoin.

2. The 24/7 settlement capability allows new issuing partners to settle on weekends, greatly reducing risks and collateral requirements.

3. On-chain verifiability and composability create a more efficient collateral management system, reducing working capital requirements.

After introducing stablecoin into this business model, the practical plan is as follows:

Launch a global card program denominated in US dollars in collaboration with Visa and card issuers;

Flexible card network settlement options:

• Directly settle with stablecoin ) to achieve weekend and overnight settlement (
• The card network generates a settlement report containing stablecoin addresses every day.
• You can choose to exchange the stablecoin back to fiat currency before settling with the card network.
• Reducing collateral requirements ) benefits from 24/7 settlement capabilities (

Stablecoins have become a practical technology with exponential growth in usage. From banks to fintech companies to payment processors, formulating a stablecoin strategy has become inevitable. Those companies that are the first to integrate and deploy stablecoin solutions will gain significant advantages in cost, revenue, and market expansion. Existing integration partners and the forthcoming clarification of legislative support will further reduce execution risks. Now is the best time to build stablecoin solutions.

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