- Emerging markets drive 80% of stablecoin volume, using USDT for remittances and dollar access amid high inflation.
- Risks include unregulated issuers and opaque reserves in emerging markets, while U.S. faces innovation constraints.
In the United States and other developed nations, stablecoins function as regulated financial instruments. The recent GENIUS Act established federal rules for payment stablecoins. This legislation requires full backing by short-term assets like Treasury bills. However, it prohibits issuers from distributing interest earnings to holders.
Financial institutions have embraced these digital dollars for various applications. BitPay reports increasing use for supplier payments and bill settlements. Stablecoins are becoming integrated into conventional financial operations. Their adoption is accelerating among businesses and institutional users.
“With clear regulations now in place, we expect stablecoin adoption to accelerate even faster, and we’re expanding support for the networks, assets, and use cases where we see the most real-world traction.” – Commenting on the matter Bitpay
Countries across Africa, South America, and Southeast Asia use stablecoins as protection against economic instability. These digital dollars offer relief from high inflation and currency devaluation.
“For Yellow Card, which serves a number of non-U.S. markets, this elevates trust in USD-backed stablecoins issued under these regulated parameters. It sets clear expectations for how reserve assets should be held, how disclosures should be made, and how consumer redemptions should be prioritized.” – Gillian Darko
Yellow Card’s strategy director Gillian Darko identifies three primary use cases. Remittances represent a significant application, with traditional services charging over 12% per transaction. Corporate treasury management and personal savings constitute other important uses. Many employees even prefer receiving salaries in stablecoins.
“The biggest differences right now are use cases and asset type. For example, in the U.S., USDC is the most prominent stablecoin and is mostly used for institutional use cases and DeFi.”
Network preferences are also evolving across markets. Ethereum and layer-two solutions handle most institutional volume. More affordable networks like Tron and Solana are gaining traction for consumer applications. USDT has surpassed USDC as the preferred stablecoin for payments in 2025.
“The US stablecoin model is broken. You can’t make money here—it’s a race to the bottom.” – In a recent Bankless podcast, Tether CEO Paolo Ardoino said
Users face potential exposure to unregulated issuers and reserve transparency issues. Platform security vulnerabilities and regulatory uncertainty present additional concerns.
“The US stablecoin model is broken. You can't make money here—it’s a race to the bottom,” says @paoloardoino of @Tether_to.
He breaks down why stablecoins are more impactful in emerging markets, and why the future lies in programmability, not just yield. pic.twitter.com/FFjvhYGbZL
— Bankless (@BanklessHQ) June 23, 2025
Industry experts note the evolving nature of stablecoin applications. HashKey’s Ben El-Baz observes that issuers must develop flexible strategies for different markets. The convergence of these distinct use cases may shape future financial infrastructure.
