Stablecoins and the Future of FX: A New Era of Liquidity
Stablecoins were a new and relatively unknown technology only a few years ago – not any more. While their market is still brimming with innovation, the concept itself is essentially mainstream.
However, for finance and payment professionals in particular, the possibilities stablecoins present are far from explored. Let’s take a look at some of those in the world of FX.
Making stablecoins regulated, trusted, accessible
The FX impact
Real-world impact: frictionless global payments
The FX future: continuous, borderless, efficient
Making stablecoins regulated, trusted, accessible
With a market now exceeding $316 billion and forecasts pointing to $500 billion in 2025 by year-end, stablecoins have rapidly evolved, from a niche for digital asset traders into powering real-world use cases, from gig economy payouts to cross-border treasury flows.
Unlike volatile cryptocurrencies like Bitcoin or Ethereum, stablecoins are designed to maintain a stable value, typically through a peg to a fiat currency such as the US dollar. The most trusted, like USDC (issued by Circle) and USDT, are backed 1:1 by high-quality reserves and aligned with regulatory standards.
Stablecoin usability hinges on reliable infrastructure – specifically the on-ramps and off-ramps that allow businesses and individuals to convert between fiat and digital currency.
Circle Mint and partners like MoneyGram are some of those offering real-time conversion, redemption, and liquidity – even in cash-dominant markets. Thunes, meanwhile, connects stablecoin payments via Circle to our Direct Global Network, including more than 4 billion mobile and stablecoin wallets.
Regulators are also working hard to standardise the market. In the US, the GENIUS Act introduced comprehensive stablecoin oversight. Europe’s MiCA framework mandates full reserve backing and transparency, while markets like Singapore, the UK, and Hong Kong are formalising their own licensing rules.
Moves like this have helped reassure potential stablecoin holders that stablecoins can be trusted to function as a secure bridge between traditional finance and the digital economy, backed by transparency and government oversight.
The FX impact
The clearest evidence of how this activity is both following and supporting a shift into the mainstream is in how stablecoins are unlocking liquidity and transforming the foreign exchange (FX) landscape.
Where cross-border payments once relied on a time-consuming patchwork of correspondent banks, multiple intermediaries and pre-funded accounts, stablecoins offer a 24/7, real-time alternative. Funds move almost instantly across borders, on a shared public ledger, with no need for traditional bank rails.
As Yam Ki Chan, Vice President at stablecoin issuer Circle, explains: “Stablecoins like USDC and EURC are the connective tissue reshaping global finance… empowering both businesses and individuals to transact near-instantly, securely, and transparently.”
Real-world impact: frictionless global payments
Stablecoins are already being taken up to solve a range of challenges in global payments – particularly where speed, transparency and liquidity matter most.
In remittances, they reduce transfer times from days to seconds and bring transaction costs well below traditional methods. In the gig economy, stablecoin platforms can unlock new opportunities for global business through instant freelancer payouts in many countries.
For established international businesses, stablecoins simplify cross-border treasury and B2B payments. Companies can pre-fund in a stablecoin such as USDC, make global disbursements instantly, and reduce the capital tied up in local accounts.
These innovations are not hypothetical. In 2023, PayPal integrated stablecoins into its services, Visa piloted USDC-based settlements, and MoneyGram began leveraging blockchain rails for near-zero-cost remittances.
Through Circle, Thunes allows Network Members to settle with USDC, offering 24/7 liquidity and seamless cross-border operations without intermediaries.
The FX future: continuous, borderless, efficient
Looking ahead, stablecoins are expected to play a growing role in the evolution of global FX.
With always-on liquidity, decentralised rails and tokenised currency pairs, stablecoin-led FX trading could eliminate delays and redefine how value is moved around the world.
At Thunes, this vision is already in motion. We are integrating stablecoins into our Direct Global Network, which helps businesses unlock frictionless, real-time payments to more than 140 countries – bringing global liquidity and instant payouts within reach for anyone, whatever their experience with digital assets.
Download our recent eBook, produced with Circle, to explore how stablecoins are enabling faster and more efficient global payments.
