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Stablecoins for Financial Inclusion and Regulatory Compliance

· 45 min read
Dora Noda
Software Engineer

Introduction

Stablecoins – digital currencies pegged to stable assets like fiat – are emerging as tools to bridge the financial inclusion gap. By combining the stability of traditional money with the efficiency of blockchain, stablecoins enable low-cost, near-instant transactions without requiring full access to banks. This is especially powerful for the 1.4 billion unbanked adults globally who lack basic accounts. Importantly, many stablecoin applications can operate within existing financial regulations, making them easier to deploy in the real world. Developers worldwide are exploring use cases – from cross-border remittances to digital savings – that comply with laws while serving underserved populations. The following report provides a deep analysis of such use cases, highlights jurisdictions with clear regulatory frameworks, showcases successful pilot programs, and surveys development tools (SDKs/APIs) and blockchain platforms suited for inclusive stablecoin solutions. We also identify partnerships and grant programs supporting innovation in this space.

Legally Compliant Stablecoin Use Cases

Certain stablecoin use cases have both high impact potential for unbanked communities and relatively straightforward compliance pathways. Key examples include cross-border remittances, humanitarian aid distribution, and digital savings/financial services. Each can be structured to meet existing regulations (e.g. anti-money-laundering, money transmitter laws) while delivering essential services in underserved regions. Below we detail these use cases and why they are attractive for developers focusing on regulated, high-impact fintech solutions.

Remittances and Cross-Border Payments

Remittances – money sent by migrants to family back home – incur high fees and slow speeds in traditional channels (5–7% fees and days of waiting are common). Stablecoins offer a compliant alternative: regulated fintech providers can handle KYC/AML and convert cash to digital dollars, which then move across borders in seconds at minimal cost. Studies show stablecoin remittances could cut costs by up to 80%, saving billions for low-income families. For example, in the UK–Nigeria corridor, stablecoin-based transfers reduced average fees from 8.5% to ~3%, while still maintaining compliance (verifying users and following AML rules). Major money transfer companies are embracing this: MoneyGram’s partnership with Stellar allows users to convert cash to USDC (USD Coin) and vice versa without a bank account, using MoneyGram’s licensed network for cash handling. This service settles nearly instantly and complies with money transmission regulations by working within MoneyGram’s regulatory framework. The impact is significant – faster, cheaper remittances directly increase disposable income for underserved households and encourage a shift from costly informal channels to safer, transparent ones.

Humanitarian Aid and Cash Assistance

Stablecoins are gaining traction for humanitarian aid distribution, where NGOs and agencies must deliver funds to people in crisis zones or underbanked areas. Traditional aid often relies on cash or hawala networks, leading to leakage, delays, and oversight challenges. Stablecoins can digitize aid with end-to-end transparency and speed, all while remaining within legal bounds for humanitarian exceptions. For instance, during the COVID-19 pandemic, aid workers and NGOs leveraged stablecoins like USDC to send emergency funds globally, saving ~35% in fees compared to bank wires. In 2022, the UN’s refugee agency (UNHCR) piloted sending aid to Ukrainian refugees via USDC on Stellar through the Vibrant wallet, providing a “blueprint” for faster, more accountable aid. Recipients got digital dollars that could be cashed out as needed, ensuring funds reached the right people quickly. The UNHCR’s treasurer noted this method “makes sure the money goes exactly where it’s supposed to go…and [that] they need money right now”. Compliance is handled by registering recipients and monitoring disbursements, similar to traditional cash aid but with far greater control. Recent pilots by NGOs like Mercy Corps in conflict zones demonstrate up to 62% faster aid delivery with 10.8% cost savings, reaching more beneficiaries by streamlining compliance and reducing intermediaries. These examples show that with proper oversight and KYC for end-recipients, stablecoin aid can operate within existing legal frameworks (e.g. sanctioned-country humanitarian exemptions) while vastly improving efficiency and transparency.

Digital Savings and Financial Services

For unbanked and underbanked populations, stablecoins can provide a safe digital savings option and gateway to basic financial services. In many developing countries, people face volatile local currencies or lack access to banks; holding money in a USD-pegged stablecoin can protect value and enable transactions. Crucially, individuals using self-custodied stablecoin wallets generally do not violate regulations – holding or spending stablecoins is legal in most jurisdictions, akin to holding foreign currency or a digital voucher. Fintech apps that custody stablecoins for users may need e-money or money service licenses, but several jurisdictions now offer clarity on this (as discussed in the next section). The impact potential is high: Stablecoins act as “digital dollars” that shield savings from inflation and enable everyday transactions for those without bank accounts. According to UBS research, consumers in high-inflation economies are adopting stablecoins as “a trustworthy and transparent alternative… used for everything from savings to transactions,” largely because of lower risk of government seizure or devaluation. In Argentina, for example, citizens have turned to USD-pegged stablecoins like USDC and DAI to preserve wealth amidst inflation, operating within existing currency rules by using regulated crypto exchanges or P2P transfers. Developers have built digital wallets with stablecoin savings features that comply with KYC/AML by integrating third-party compliance APIs. For instance, the Latin American wallet Airtm (a registered U.S. MSB) holds client funds in USDC and lets users seamlessly swap to local currency when needed. This kind of digital savings tool, delivered via a smartphone app, can empower unbanked users to store, send, and receive money globally. By designing apps to be non-custodial or by partnering with licensed custodians, developers can navigate regulations while providing unbanked users a stable store of value and access to payments.

Merchant Payments and Local Commerce

Another emerging use case is enabling underserved merchants and micro-businesses to accept payments via stablecoins. Many small merchants in cash-driven economies cannot easily access credit card networks or digital payments. Stablecoins offer a way to accept digital payments with low fees, settled instantly to a USD-equivalent balance. In practice, this can be set up in compliance by using licensed payment processors or exchange platforms as intermediaries for cash-in/out. For example, fintech providers in Southeast Asia have integrated stablecoin payments for merchants using regulated on/off ramps – customers pay in stablecoin and merchants can immediately convert to local currency through an exchange that follows local regulations. Large payment processors are also moving in: Shopify now allows merchants to accept stablecoins for online sales, leveraging partner services that handle compliance and conversion. The impact for unbanked merchants is promising: they can tap into e-commerce and digital sales without traditional bank merchant accounts, expanding their customer base. In day-to-day retail, stablecoin payment apps (often using QR codes on mobile) have been piloted in markets like Kenya and Nigeria, letting customers pay a shopkeeper in, say, USDC or a local currency stablecoin. Because transactions are on-chain, records are transparent which can help with tax and legal compliance. Many such solutions are in early stages, but as stablecoin payments yield lower fees than cards (often mere cents) and no chargebacks, they address a pain point for small vendors. Regulators generally treat merchant-facing stablecoin services as they would any digital payment service, requiring registration or licensing of the service provider but not burdening the end-user. This means developers can create merchant payment platforms that plug into existing licensed exchanges or payment gateways to handle the regulatory parts, while the user experience remains a simple wallet app for the merchant. The potential to increase financial inclusion by bringing cash-only businesses into the digital economy is substantial, all while using stablecoins under compliance guardrails.

Summary of Key Use Cases, Regulatory Ease, and Impact: The table below highlights how these use cases rank in terms of ease of regulatory compliance and their potential impact on underserved populations:

Stablecoin Use CaseRegulatory Compliance EaseImpact Potential (Unbanked)
Cross-Border RemittancesGenerally fits into existing money transfer laws – can partner with or obtain MSB/e-money licenses. Stablecoin issuers (e.g. USDC) are regulated, aiding trust.Very High: Reduces fees (up to 80% savings) and speeds up transfers, directly benefiting low-income families. Enables migrants to support unbanked relatives with instant digital cash.
Humanitarian Aid DistributionOften permitted under humanitarian exemptions even in sanctioned regions. NGOs coordinate with regulators; KYC for recipients ensures AML compliance. Non-custodial wallets (e.g. Stellar’s Vibrant) avoid needing local banking licenses.Very High: Gets aid to crisis victims faster (payments 62% quicker) with lower overhead, meaning more relief reaches people. Digital traceability increases transparency and prevents theft/misuse.
Digital Savings & WalletsIndividuals holding stablecoins face minimal regulatory hurdles in most countries. Fintechs offering custodial wallets comply via e-money or trust licenses (as in EU MiCA or NYDFS guidance). Clear redemption and reserve rules for issuers protect consumers.High: Provides a safe store of value in unstable economies, protecting earnings from inflation. Brings unbanked users into a digital financial system where they can save, send, and eventually access credit or insurance.
Merchant PaymentsTreated similar to digital payment processors: providers must register and ensure tax compliance, but transacting in stablecoins is legal. Some jurisdictions recognize stablecoin payments under existing payment laws.Medium-High: Helps micro-merchants and informal businesses join the digital economy without bank accounts. Reduces payment fees and fraud for merchants, potentially increasing profits and enabling new customer sales (including online).
Payroll & Gig EconomyRequires compliance on the paying company’s side (e.g. use a platform like Airtm which is a licensed MSB). Stablecoins themselves are just the payout medium. Clear record-keeping and reporting make it easy to stay compliant with tax and labor laws.High: Allows companies to pay unbanked freelancers or workers worldwide in USD-equivalent value instantly. This opens up global job opportunities for underbanked talent and ensures workers can actually receive wages in reliable currency.

Each of these use cases demonstrates a balance of regulatory feasibility and social impact. Developers can choose the segment that aligns with their mission, knowing that current laws (with the right partnerships or licenses) do accommodate these activities. In particular, remittances and aid stand out for their significant humanitarian impact, and regulators have shown willingness to allow innovation here, provided consumer protection and AML measures are in place.

Regulatory Clarity and Favorable Jurisdictions

Global regulators have increasingly turned their attention to stablecoins, and some jurisdictions now provide favorable clarity that makes development easier. Generally, regulators focus on reserve backing, redemption rights, transparency, and licensing of stablecoin issuers – all of which, when clearly defined, reduce uncertainty for developers building on those stablecoins. Below are examples of frameworks and regions leading in regulatory clarity:

  • European Union (MiCA): The EU’s Markets in Crypto-Assets (MiCA) regulation (taking effect 2024–2025) explicitly covers stablecoins (termed “e-money tokens” if fiat-pegged). MiCA requires 100% reserve backing, regular audits/disclosures, and redeemability at par. Notably, stablecoins under MiCA cannot pay interest (to distinguish from bank deposits). Large issuers face transaction volume caps (e.g. daily transaction limits) to protect monetary stability. For developers, MiCA provides a clear legal category for stablecoins – if you integrate a Euro or USD stablecoin that complies with MiCA, you know it’s legally recognized across the EU as electronic money. This makes it easier to launch apps (remittance services, etc.) in Europe using stablecoins, as long as you partner with a MiCA-licensed issuer or obtain necessary registrations. MiCA’s standardized rules are seen as a global blueprint, giving confidence that a Euro stablecoin, for example, is fully regulated and safe for consumers.

  • United States (State-Level and Pending Federal Law): The US lacks a unified federal stablecoin law as of 2025, but there is growing momentum. State regulators have stepped in – e.g. the New York Department of Financial Services (NYDFS) issued guidance that any USD-backed stablecoin under its supervision must be fully reserved at all times, with clear redemption policies and monthly audits. This is why NYDFS-regulated coins like Paxos’s USDP and Gemini’s GUSD have explicit rules on backing and redemption. Circle’s USDC, while not under NYDFS, voluntarily provides similar transparency (monthly attestations) and is licensed as a money transmitter in numerous states. For developers, this patchwork means it is legal to use stablecoins like USDC or USDP in the US, and these coins are already compliant via their issuers’ licensing. Any app facilitating stablecoin payments in the US will typically register as a Money Services Business (MSB) and follow FinCEN guidelines – a known regulatory path. On the federal horizon, proposals such as the Stablecoin TRUST Act and the GENIUS Act are being discussed, aiming to federalize oversight (Federal Reserve for banks, OCC for non-banks, etc.). While not yet law, the expectation of 2025 legislation indicates the US is moving toward clearer rules, likely resembling NYDFS standards nationwide. In short, U.S. developers currently work under state compliance, but the use of established stablecoins is generally permitted and increasingly encouraged by regulators’ public statements.

  • Singapore and Hong Kong: These Asian financial hubs have crafted comprehensive stablecoin regimes. In Singapore, the Monetary Authority of Singapore (MAS) finalized a framework in August 2023 for single-currency stablecoins pegged to SGD or G10 currencies. The rules allow banks and non-banks to issue stablecoins, but with strict requirements: reserves must be high-quality and segregated, issuers must meet capital and liquidity minimums, 1:1 redemption must be guaranteed within 5 days, and transparency is mandated. This effectively integrates stablecoins into Singapore’s trusted e-money system. Hong Kong’s regulators similarly (in 2023) announced that only fully backed, licensed stablecoins will be allowed, focusing initially on fiat-backed types and prohibiting algorithmic versions. Both jurisdictions are known as innovation sandboxes – they invite fintech projects to test under supervision. The clear criteria in these markets (e.g. needing a license but then being able to operate widely) mean developers targeting Asian markets can incorporate stablecoins with confidence in legal acceptance. For example, a remittance startup in Singapore can use a stablecoin that MAS has within its framework, ensuring regulators view it as legitimate digital cash equivalent.

  • United Kingdom: The UK is in the process of integrating stablecoins into its payments regime. The Treasury has signaled that certain stablecoins will be regulated under existing e-money and payments laws, treating stablecoin payments with the same rigor as bank payments for stability and consumer protection. A proposal calls for issuers to hold reserves at the Bank of England or equivalent protection, and similarly to MiCA, not offer interest. While full legislation is pending, the direction is that the UK will allow stablecoins as a recognized form of payment. The Bank of England is also set to oversee systemic stablecoin firms. This favorable stance (assuming compliance with operational standards) suggests the UK will be a friendly jurisdiction for stablecoin-based financial services.

  • Other Notables: Switzerland has been treating stablecoins under existing laws (e.g. as deposits or securities depending on structure) and was an early adopter of crypto regulation, offering clarity through FINMA licensing. Japan passed a law effective 2023 that legalizes stablecoins but restricts issuance to banks, trusts, and licensed agents – a conservative but clear approach that assures any stablecoin in Japan (once approved) is bank-grade. United Arab Emirates (incl. Dubai’s VARA): UAE has embraced crypto innovation; its guidance requires stablecoins to be fully reserved and audited monthly, and the country actively attracts crypto companies with its regulatory certainty. Brazil is drafting rules as well – notably, a proposal would disallow unlicensed stablecoin issuers from enabling self-custody transfers, aiming to force usage through regulated entities for transparency. This shows some emerging markets seek to harness stablecoins but within strict channels.

In summary, jurisdictions like the EU, Singapore, Hong Kong, UAE, and (soon) the UK and US are providing the legal clarity needed for stablecoins to thrive responsibly. This means developers have options to launch pilots or products in environments where the rules of the road are known. For instance, a fintech team might choose to issue a stablecoin-based remittance app in Europe under MiCA compliance or in Singapore under MAS guidelines, thereby reassuring investors and users of its legality. This regulatory clarity reduces compliance costs and uncertainties, enabling smoother cross-border operation as well. As regulations converge on principles of backing and transparency, we see a trend toward global alignment that will further simplify development and adoption. Developers should still be mindful of differences – e.g. licensing processes – but overall the climate is increasingly favorable for legally compliant stablecoin innovation.

Case Studies and Pilot Programs

Real-world deployments of stablecoins in service of the unbanked are growing in number. These case studies demonstrate both the feasibility (navigating regulatory and logistical challenges) and the benefits achieved. Below are several notable examples across remittances, aid, and savings initiatives:

  • Airtm (Cross-Border Payouts in Latin America): Airtm is a digital wallet platform used widely in Latin America for dollar savings and payments. Registered as a U.S. Money Service Business, Airtm integrated USDC stablecoin to help gig workers and professionals receive payments from abroad. Businesses that use Airtm to pay workers achieved ~35% cost savings on cross-border payouts versus traditional methods. This is because stablecoin transfers cut out multiple intermediaries and unfavorable exchange rates. As a case, Airtm shows that a compliant entity (they follow KYC and US regulations) can leverage stablecoins to benefit users: over 160,000 monthly active users transact in USDC on Airtm, many of whom are in countries like Venezuela or Argentina with unstable currencies. Users receive dollars in minutes and can convert to local cash the same day through Airtm’s network of human tellers. This model has empowered people who previously struggled with delayed or expensive international payments. Airtm’s success, enabled by Circle’s transparent USDC reserves and compliance, illustrates a sustainable, legal path for stablecoin use in emerging markets.

  • UNHCR & Stellar Aid Assist (Refugee Cash Assistance): In December 2022, the UN Refugee Agency launched Stellar Aid Assist, a blockchain-based aid disbursement system, to send aid to Ukrainian refugees in need. Through this program, UNHCR distributes aid in the form of USDC (a fully reserved, regulated stablecoin) on the Stellar network. Recipients use the Vibrant wallet app to receive and hold funds, and can cash out USDC for local currency at MoneyGram locations (leveraging the Stellar–MoneyGram integration). This pilot was groundbreaking: the UN became “the largest global entity to legitimize the use case” of stablecoins in aid, according to industry observers. The choice of Stellar was deliberate – Stellar’s low fees and partnership with MoneyGram for last-mile cash payout were essential to reach people with no bank accounts or cards. Critically, the program remained compliant by KYC-ing recipients (refugees were registered) and working with regulated entities (MoneyGram, Circle) for currency exchange and issuance. The result is that refugees could get aid instantly and securely on their phones, rather than waiting weeks for wire transfers or handling insecure cash vouchers. UNHCR reported that this method “ensures the money goes exactly where it’s supposed to go” while not putting people at additional risk. This case has inspired other NGOs to consider stablecoins for cash assistance in crises, given its success in speed and accountability.

  • Mercy Corps – Syria and Kenya Pilots: Mercy Corps Ventures, the impact investment arm of the NGO Mercy Corps, has actively piloted stablecoin solutions for financial inclusion. In Northeast Syria (2024–25), Mercy Corps launched a pilot to pay smallholder farmers and agribusinesses using a USD stablecoin, circumventing Syria’s collapsed banking system and expensive hawala brokers. Working with local partners and a fintech (HesabPay), they delivered funds via mobile wallets backed by stablecoins, drastically reducing transfer costs and improving security for participants in a sanctioned, conflict-torn economy. This pilot had to carefully navigate compliance – even though humanitarian transactions are exempt from sanctions, Mercy Corps ensured all actors were vetted and that the stablecoin (likely USDC or similar) was handled through a compliant platform. Early results indicate farmers received payments faster and more reliably than before, validating the approach. In Kenya (2025), Mercy Corps partnered with Ripple and startup Dvara to aid pastoralist herders suffering from drought. They delivered relief in the form of a Ripple-issued USD stablecoin (RLUSD) on Ethereum, using smart contract triggers (based on drought index data) to automate payouts. Over 500 herders are targeted to receive ~$75 each when drought conditions hit thresholds. This innovative program shows stablecoins enabling “parametric aid” – funds released on objective criteria – which increases trust and efficiency. Again, compliance was ensured by involving Mercy Corps and using a known stablecoin issuer (Ripple’s entity) under controlled conditions. These Mercy Corps pilots underscore stablecoins’ versatility in humanitarian finance: from conflict zones to climate disasters, they can deliver timely assistance at lower cost, working within legal allowances for aid.

  • Latin America Grassroots Adoption (Savings and Commerce): In countries like Argentina, Venezuela, and Nigeria, individuals and small businesses have organically adopted stablecoins as a lifeline. While not a single “program,” this bottom-up case is instructive. For example, Argentina’s high inflation (over 50% annually) drove many locals to convert pesos into DAI or USDC stablecoins as a hedge. Startup apps like Buenbit and Reserve enabled Argentines to save in stablecoins and spend via prepaid cards, operating under local fintech licenses. In Venezuela, where banking was impaired by hyperinflation and sanctions, people turned to dollar stablecoins for everyday transactions – even retail stores in Caracas reportedly started accepting USDT (Tether) for groceries. Such usage often began peer-to-peer and somewhat in legal gray areas, but has become more normalized. In Nigeria, ranked among the top in crypto adoption, stablecoins are used to bypass strict forex controls to pay for imports or tuition abroad. One Nigerian remittance startup in the MIT Solve program used stablecoins to cut remittance costs drastically on UK–Nigeria transfers. Regulators in these countries have taken various approaches (from tacit acceptance to pushing users toward official eNaira in Nigeria’s case), but importantly, no major bans on stablecoins themselves – allowing this usage to flourish for lack of better alternatives. The impact is observed in personal stories: a Venezuelan family preserving their nest egg in USDC instead of bolivar, or a Nigerian student receiving school money via a stablecoin instead of an exorbitant wire. For developers, these cases show an unmet need – and an opportunity to provide user-friendly, compliant interfaces to what people are already doing informally with stablecoins. For instance, developing a Latin America-focused savings app with proper KYC and links to banking partners could formalize and scale the grassroots adoption that’s proven demand.

  • MoneyGram Access & Circle’s Partnerships: On the private sector side, partnerships are validating stablecoins in mainstream finance. MoneyGram’s Crypto-to-Cash service (launched 2022–2023) uses Stellar USDC to allow cash pickup of remittances sent as USDC in around 300,000 locations worldwide. This pilot, now expanding, essentially turned stablecoins into an intermediary currency for remittances. Users in, say, the USA can convert cash to USDC (through MoneyGram’s licensed service) and the recipient in the Philippines can receive that USDC and instantly cash it out in pesos at a MoneyGram shop – no bank needed on either side. This program has been successful enough that MoneyGram integrated it into their retail offering, and it serves as a model for leveraging existing compliance infrastructure (MoneyGram is licensed in all jurisdictions it operates) to deliver a crypto-powered service. Similarly, Circle (issuer of USDC) has engaged in partnerships for social impact – working with Airtm (as noted) and also with NGOs. Circle’s initiative “Cross-Border Payments for COVID relief” demonstrated that global aid to medical workers could be done via USDC faster and cheaper. Circle also has a program with Bolivian microfinance app (via Airtm) and others to spread dollar access in unstable economies. These case studies from industry show that when fintech companies collaborate with humanitarian or remittance specialists, stablecoins become a powerful backend that still respects front-end regulations and user experience.

Each of the above case studies reinforces a common theme: stablecoin solutions can be deployed now, in real-world contexts, with regulatory approval and tangible benefits. Whether it’s a global organization like the UN, an NGO like Mercy Corps, or a fintech like MoneyGram or Airtm, the pattern is to integrate stablecoins into existing legal frameworks (registering as needed, partnering with compliant entities) and then leveraging the technology to reach people previously left out. The success of these pilots is encouraging more investment and expansion in this space.

Development Platforms and Tools for Stablecoin Solutions

From a developer’s standpoint, choosing the right blockchain platform and tooling is crucial for building stablecoin-based applications that are efficient, secure, and compliant. Different blockchains offer different advantages in terms of speed, cost, and ecosystem support. Moreover, there are numerous open-source SDKs, APIs, and platforms that simplify the integration of stablecoins into new applications. Below we survey major blockchain platforms commonly used in fintech and stablecoin projects – including Ethereum, Solana, Polygon, Stellar, and others – and highlight the development tools and opportunities they provide.

Ethereum (and EVM Chains)

Ethereum is the pioneer of stablecoins – most major stablecoins (USDT, USDC, DAI, etc.) were initially launched as ERC-20 tokens on Ethereum. For developers, Ethereum offers a mature environment with extensive tooling: well-known libraries like web3.js / ethers.js, Truffle/Hardhat for smart contracts, and standards like ERC-20 that ensure any stablecoin token can be easily integrated. The OpenZeppelin library provides audited contracts for issuing tokens, which can be used to create new stablecoins or interact with existing ones safely. While Ethereum’s mainnet has high fees at times, the rise of Layer-2 networks (like Arbitrum, Optimism, Polygon PoS) allows stablecoin transactions with much lower cost, widening access. An example of developer tooling is Circle’s APIs and SDKs: Circle provides a set of APIs that abstract blockchain complexity and let developers accept or send USDC via simple API calls. Using Circle’s developer platform, one can implement stablecoin payments in an app “in just a few hundred lines of code”, handling addresses and confirmations through their SDK. This significantly lowers the barrier to integrating USDC on Ethereum and several other supported chains. Additionally, projects like Zero Hash and Fireblocks offer APIs for stablecoin conversion and custody that handle compliance, so developers can plug stablecoin functionality into fintech apps without directly managing private keys. Ethereum’s vast DeFi ecosystem also provides composability – for instance, a developer building a savings app can tap into lending protocols to offer interest on stablecoin deposits (though offering yield might introduce regulatory considerations like securities laws). Overall, Ethereum’s strengths are its network effects and rich tools, making it a default choice for many stablecoin use cases, especially when on-chain liquidity and composability are needed. The downside is ensuring affordability (hence using Layer-2 or sidechains) and scalability, but ongoing protocol upgrades and L2 adoption are continually improving that.

Solana

Solana is a high-performance blockchain known for its low latency and low fees, which are attractive qualities for payment use cases. Solana has become a hub for stablecoin transactions – in fact, by 2024 it emerged as “the most used blockchain for stablecoin transfers” by volume. Major stablecoins like USDC are native on Solana, and even PayPal chose Solana as a chain for its PYUSD stablecoin due to its speed and throughput. For developers, Solana offers a different stack (programming in Rust for on-chain programs) and a growing array of tools. The Solana SDK and client libraries in Rust, C++, Python, TypeScript, etc., allow interacting with the chain. Unique to Solana, Solana Pay is a toolkit and protocol specifically for merchant payments using stablecoins (or any SPL token). Solana Pay provides a SDK for point-of-sale and e-commerce integration, enabling merchants to request payments via QR codes or web links that customers approve with their Solana wallet. This is open-source and designed to facilitate adoption of stablecoins in retail. Furthermore, Solana’s design includes features like “token extensions” which allow compliance functionalities at the token level. For example, Confidential Transfers (to hide amounts but still allow audits) and Transfer Hooks (to embed compliance checks or logic on transfers) are built into Solana’s token program and are being used by stablecoins like PYUSD. This means developers building regulated applications have ready-made tools for ensuring privacy or adding KYC logic on Solana, without needing external systems. Solana’s ecosystem also includes wallets like Phantom and Sollet, and infrastructure like Metaplex for tokens, which can be leveraged for user-friendly experiences. With Solana’s high throughput (tens of thousands of TPS), it’s possible to scale to nationwide payment levels – something that has drawn interest from fintech companies. The recent addition of PayPal’s PYUSD to Solana is a testament: “Solana’s speed and scalability make it the ideal blockchain for global financial institutions to create new payment solutions”. Developers targeting mass-market payments or micropayments (e.g. pay-per-use services for unbanked users) may find Solana fits well, given its focus on performance and its support from major payment players.

Polygon and Other EVM Sidechains

Polygon (POS chain) has become a popular network for stablecoin applications due to its EVM-compatibility (it’s basically an extension of Ethereum) and low fees. Many Ethereum-based stablecoin projects have deployed on Polygon to serve users cost-effectively. For instance, Stripe’s crypto payout pilot in 2022 used Polygon to pay freelancers in USDC because transactions cost pennies and confirm quickly – ideal for frequent small payouts to people in emerging markets. Developers on Polygon can use all the familiar Ethereum tools (Solidity, web3 libraries, Metamask, etc.), which lowers the learning curve. Polygon’s ecosystem also offers specific tools: Polygon SDK for building one’s own sidechain or enterprise chain, and APIs from providers like Alchemy or Infura that support Polygon. The network is secured by a set of validators and periodically checkpoints to Ethereum. For compliance-focused development, one advantage is that any smart contracts or security audits done on Ethereum can be reused on Polygon. Moreover, Polygon ID is a new identity framework on Polygon that can allow privacy-preserving KYC credentials – something a developer could integrate to ensure only verified users access certain stablecoin services. Another advantage: stablecoins on Polygon often have liquidity bridges to Ethereum, so users can on-ramp via Ethereum and then operate on Polygon for cheaper transactions. Polygon’s adoption in developing markets is notable as well – for example, some microfinance and donation platforms choose Polygon to avoid burdening beneficiaries with gas fees. Additionally, Polygon’s enterprise arm has engaged with governments and companies (like in India) for blockchain solutions, potentially smoothing regulatory acceptance of apps built on Polygon. Other EVM-compatible chains like BNB Chain or Avalanche similarly host stablecoins and offer grant programs for developers, but Polygon stands out due to its early focus on inclusion and big partnerships (e.g. Meta, Reddit, and fintechs using it for NFTs and payments). In summary, developers wanting the solidity/Ethereum experience but with user-friendly costs often opt for Polygon, and they can leverage a wealth of open-source code and SDKs that carry over from Ethereum.

Stellar

Stellar is a blockchain network expressly designed for payments and financial access, making it a natural choice for stablecoin use cases. Stellar was built to connect financial institutions, with built-in support for issuing fiat-backed tokens (“assets”) and a decentralized exchange for forex between tokens. Many regulated stablecoins have launched on Stellar (for example, Circle’s USDC is on Stellar, as are stablecoins for currencies like the Nigerian NGN and Argentine peso via local anchors). For developers, Stellar offers easy-to-use SDKs in multiple languages (JavaScript, Python, Java, etc.) and a RESTful API through Horizon, its API server. The network’s design abstracts much of the blockchain complexity: you can create accounts and send payments with simple function calls. Stellar also has a rich set of Stellar Ecosystem Protocols (SEPs) – basically application-layer standards – that cover things like KYC info transfer, fiat on/off-ramp integration, and multi-signature coordination. For example, SEP-24 and SEP-6 define how wallets can interact with anchors (entities that issue fiat tokens) for deposit/withdrawal. This is very relevant to compliance: a developer building a remittance app on Stellar can integrate an anchor that handles KYC and fiat custody, using the SEP standards to pass user info securely. The Stellar Development Foundation (SDF) provides extensive documentation and even support programs for developers. As noted in MoneyGram’s pilot, Stellar’s open-source resources made integration straightforward. SDF has open-source reference implementations for wallets and anchor servers, which developers can fork to bootstrap their projects. Notably, Stellar’s fee is tiny (fractions of a cent) and it reaches consensus in ~5 seconds, so it’s optimized for high-volume, low-value transactions – exactly the profile of many inclusion use cases (remittances, aid disbursements, micropayments). A significant development is Stellar Aid Assist, which as mentioned, provides a template for NGOs to bulk distribute aid via stablecoins. This platform is available for others to use – meaning developers working with NGOs could tap into that solution rather than reinventing it. In terms of community, Stellar has an active developer community and Community Fund grants, as well as an upcoming smart contract layer (Soroban) which might allow more complex compliance logic on-chain in the future. For now, Stellar’s simplicity and focus on compliance-friendly features (like tags on transactions for memos, whitelisting accounts if needed, etc.) make it a top choice for applications like cross-border payments and currency exchange for the unbanked.

Celo

Celo is a platform with a mission aligned to financial inclusion. It is a mobile-first, EVM-compatible blockchain that also issues its own stablecoins (cUSD, cEUR, etc., backed by a crypto reserve). Celo’s unique angle is phone number identity and lightweight client syncing, which aims to make using a Celo dApp as easy as a mobile app even on low-end devices. For developers, Celo provides the Celo SDK, composed of ContractKit and DAppKit, which streamlines building mobile dApps. With DAppKit, a developer can easily connect their React Native (Expo) mobile app to the user’s Celo mobile wallet for signing transactions, simplifying the UX for mobile users. ContractKit (a JavaScript/TypeScript SDK) makes it easy to interact with Celo’s core contracts and stablecoin primitives – for example, adding a few lines to transfer Celo Dollars or query balances. Celo was specifically designed to reach the “1 in 3 adults without a bank account,” as their SDK introduction states. This ethos is reflected in features like allowing users to pay transaction fees in stablecoins (so they don’t need to hold the native token for gas). For compliance, while Celo is permissionless like Ethereum, they have an alliance of partners (the Celo Alliance for Prosperity) including many NGOs and local financial institutions, which helps ensure Celo-based projects engage with local regulators and communities. The Celo Foundation and cLabs support developers through initiatives like Celo Camp (an accelerator) and various grant programs. An example case study is Kotani Pay in Kenya, which used Celo to provide a USSD-interface wallet for users without smartphones, enabling them to receive stablecoins that could be converted to mobile money. Celo’s design – ultralight mobile clients and identity mapping – is beneficial for rural or low-infrastructure areas. With Celo joining the broader Ethereum Layer-2 ecosystem (plans underway to transition Celo to an L2 on Ethereum for greater security while keeping costs low), developers can expect even easier interoperability. To summarize, Celo offers a focused toolkit for building user-friendly, mobile-centric stablecoin apps and comes with a supportive community aimed at real-world deployments in developing regions.

Hedera Hashgraph

Hedera is an enterprise-focused public ledger governed by a council of large corporations and institutions. It introduced a purpose-built toolkit for stablecoins called Stablecoin Studio – an open-source SDK that provides an end-to-end solution for issuing and managing stablecoins on Hedera. This toolkit allows developers (particularly those working with banks or enterprises) to configure a stablecoin with built-in compliance features like oracle-based proof-of-reserves and integration with custody providers. Essentially, it abstracts the heavy lifting of writing smart contracts; Stablecoin Studio uses Hedera’s native token service and consensus service to handle token issuance and transactions with high throughput and finality. One notable use case: Standard Bank (the largest bank in Africa and a Hedera governing council member) used Stablecoin Studio in a proof-of-concept for cross-border remittances within Africa. They praised that the toolkit “speeds up development…allowing businesses to focus on delivering benefits to customers”, highlighting that it prioritizes regulatory compliance and security from the ground up. Hedera’s advantages for developers include fast transactions (seconds) with very low fees ($0.0001 range), and a predictable governance and legal framework (the council model). For those building stablecoin apps for banks or governments, Hedera might appeal because of its controlled and audited environment – for instance, Shinhan Bank of South Korea piloted international remittances using won and rupiah stablecoins on Hedera (an example of a bank-issued stablecoin trial). The existence of grant programs and an active developer community via the HBAR Foundation can provide funding and support. The main difference is that Hedera is not EVM-based (though it supports Solidity smart contracts now), so developers may use its Java/JavaScript SDKs or the Stablecoin Studio CLI rather than Ethereum tools. Still, for many straightforward payment use cases, one might not even need custom smart contracts – Hedera’s native token functionality can cover it. In summary, Hedera offers a enterprise-grade, turnkey approach to stablecoins, suitable for developers working closely with legacy financial institutions who require strong assurances of compliance (e.g. audit trails, account KYC tagging) and performance.

Of course, there are other platforms (Algorand, TRON, Ripple’s XRP Ledger, etc.) where stablecoins live and developers might find opportunity. Algorand has been used for some national digital currency pilots and also hosts USDC; it’s known for a solid tech with quick finality and has developer grants via the Algorand Foundation. TRON, while more associated with retail crypto usage, carries a huge volume of Tether (USDT) transactions at very low cost and has been a de facto network for informal remittances in some Asian and African corridors. Tron’s developer tools are similar to Ethereum’s (as it uses Solidity), but one should be mindful that Tron’s regulatory standing is less clear (the company behind it faced scrutiny). Ripple’s XRP Ledger now supports issuing stablecoins and some projects (like Palau’s USD-backed digital currency pilot) are happening there; Ripple provides tools for issuing tokens on XRP Ledger and has a large financial industry network. Each platform has its pros and cons, but the common trend is that developer tooling is maturing across the board – whether it’s easy-to-use SDKs, comprehensive documentation, or built-in compliance features, it’s becoming simpler to build stablecoin applications on most major chains.

To consolidate the comparison, the table below summarizes major chains and the developer tools and platforms available:

Blockchain PlatformKey Stablecoins & FeaturesDeveloper Tools & PlatformsNotable Programs/Integrations
Ethereum (Mainnet & Layer-2)USDT, USDC, DAI (ERC-20) – largest stablecoin liquidity and DeFi integration. High security but mainnet gas fees can be high.Web3 libraries (ethers.js, web3.py), Truffle/Hardhat for smart contracts. OpenZeppelin contracts for token standards. Circle API/SDK for USDC payments integration. Extensive docs and developer community support (StackExchange, etc.).Most DeFi protocols (MakerDAO, Aave) support stablecoins – enabling savings/loans. Layer-2 networks (Arbitrum, Optimism) used for lower-cost stablecoin txns. Stripe’s payout API uses Polygon (EVM sidechain) for USDC. Numerous hackathons/grants via Ethereum Foundation and others.
SolanaUSDC (native), USDT, and now PayPal’s PYUSD on Solana. Very fast (~400ms block) and ~$0.0001 fees, good for real-time payments. Token programs support advanced features (memos, transfer hooks) for compliance.Solana SDKs in Rust, C++, TS, etc. Solana Pay SDK for merchant payment integration. Developer-friendly APIs via Serum, Solana Beach, etc. Good documentation on Solana.dev.PayPal’s PYUSD on Solana (for fast settlement). Shopify and Helium/Helio integration for Solana Pay (allowing stablecoin checkout). Solana Foundation runs hackathons and grants (Solana Grant DAO) emphasizing payments and fintech.
Polygon (EVM Chain)USDC, USDT, DAI all on Polygon with robust usage. Low fee (pennies) and ~2s block time. Inherits Ethereum security via checkpoints. Popular for fintech due to EVM compatibility.Same tools as Ethereum (Solidity, Remix, Metamask). Polygon POS SDK for custom chains. Alchemy/Infura RPC support. Polygon ID for integrating decentralized identity/KYC.Stripe crypto payouts (pilot to Latin America) used Polygon USDC. Many remittance startups (e.g. Xend Finance) build on Polygon for cost efficiency. Polygon has grants (Polygon Village) and partners with centers like UNICEF CryptoFund (which funded some Polygon projects).
StellarNative support for fiat tokens (multiple stablecoins: USD (USDC), EURT, NGNT, etc. issued by anchors). Near-zero fees and 5s finality. Built-in DEX for currency conversion.Horizon API (REST) for easy network queries/tx submissions. SDKs in JavaScript, Python, Java, Go, etc.. Stellar Ecosystem Protocols (SEP) for KYC and fiat on/off (SEP-6, SEP-24). Tools for multi-sig, batching, etc. Provided by SDF with thorough docs.MoneyGram Access API – allows apps to plug into MoneyGram’s cash network via Stellar. Stellar Community Fund grants for projects. Stellar Aid Assist platform available for NGOs to use. Partnerships with fintechs (Flutterwave, Tempo) provide anchors in Africa and Europe.
CelocUSD, cEUR (stablecoins native to Celo with reserve backing), plus supports USDC. Ultra-mobile-friendly (phone number mapping, lightweight client). Carbon-negative chain (PoS).Celo SDK (ContractKit & DAppKit) – open source tools to easily add Celo stablecoin functionality into mobile apps. EVM compatible, so Solidity smart contracts and Ethereum dev tools work. Valora wallet open-sourced for reference.Celo Camp accelerator and Celo Foundation grants for inclusion projects. Alliances with NGOs (e.g. Grameen Foundation tested lending with Celo stablecoin). Mento protocol for stablecoin stability accessible if devs need to understand mint/burn. Integration with M-Pesa via partners (Kotani Pay) to bridge stablecoin to mobile money in East Africa.
Hedera HashgraphVarious bank pilots (e.g. stablecoins for South Korean won, Kenyan shilling). Recently launched Stablecoin Studio SDK for issuers. Very fast (finality in seconds) and low, fixed fees – appealing to enterprises.Stablecoin Studio (open-source) – toolkit to configure/launch stablecoins with compliance (proof-of-reserve, etc.). Hedera Java/JS SDKs for interacting with Hedera services (token service, consensus service). Swagger API docs for REST access.Used by Standard Bank in Africa for a remittance POC. Hedera’s HBAR Foundation offers funding for payment use cases. Google, IBM, etc. on governing council, which can open doors for enterprise adoption (e.g. ERP system integration). Some governments (e.g. Haiti project for aid) have explored Hedera for transparency in fund flows.
Other PlatformsAlgorand: USDC, USDT on Algorand; 4s finality, very low fee, strong on-chain security. TRON: Dominant for USDT in Asia/Africa, negligible fees, high TPS. Ripple XRP Ledger: Supports issued currencies (IOUs); low fees, built-in DEX; being used in some national stablecoin pilots.Algorand SDKs (Python, Go, JS) and developer portal; Algorand has AlgoKit for quick app scaffolding. TRON uses Solidity – devs can use TronGrid API, TronWeb similar to web3. XRP Ledger has easy issuance of tokens via API/CLI, and RippleAPI/SDKs in JavaScript and Java. Open-source and well-documented.Algorand was used in Marshall Islands’ SOV project and has a finance focus; the Algorand Foundation offers grants (e.g. to inclusion startups like MikroTik). TRON’s USDT widely used for informal remittances (e.g. Chinese traders in Africa); Tron's creator established a fund for developers (though regulatory support is less official). Ripple has a $250M fund for crypto payments and engaged central banks – e.g. Palau’s USD stablecoin trial on XRPL.

Table: Major blockchains for stablecoin development, highlighting available developer tools and notable integrations.

Each platform above presents opportunities for developers: the choice may depend on the target user base and compliance needs. For instance, if building a wallet for refugees, Stellar or Celo (with their focus on simplicity and identity) might be ideal. For a merchant payment network aiming for retail adoption, Solana or Polygon could be better suited due to throughput and existing payment integrations. Ethereum and its L2s remain essential if interoperability with the broader DeFi/crypto ecosystem is needed (e.g. offering savings yield or leveraging existing infrastructure like MetaMask for user access). It’s also common to use multi-chain approaches – for example, use Stellar or Celo for last-mile delivery to users (low fees on basic phones) but settle or fund via Ethereum where liquidity is high. Tools like Circle’s Cross-Chain Transfer Protocol (CCTP) are emerging to let developers move stablecoins across chains easily, opening the door to apps that seamlessly leverage multiple networks.

Importantly, many of these developer resources are open-source or freely accessible. This means developers in any country can start building without needing to reinvent core components – whether it’s using an SDK to handle wallet key management, or deploying an audited stablecoin contract, or integrating an API for compliance checks. The maturation of these tools is accelerating the pace at which new stablecoin solutions for inclusion can be prototyped and scaled.

Partnerships and Support Programs

Innovating in the stablecoin-for-inclusion space often requires collaboration and support beyond just technical tools. Fortunately, a growing number of partnerships, consortiums, and grant programs are available to help developers and organizations succeed in this domain. These range from nonprofit initiatives to corporate and government-backed programs:

  • NGO and Humanitarian Partnerships: Organizations like Mercy Corps, Red Cross, Oxfam, and UN agencies have become active partners for pilot projects. As detailed, Mercy Corps Ventures launched multiple pilots and also runs the Crypto for Good Fund (C4G), which by 2024 had supported 15+ pilots reaching 40,000+ users. In its latest round, C4G4 (2024–25) explicitly seeks startups leveraging stablecoins to drive financial inclusion in the Global South. This fund provides grant financing and mentoring – an invaluable resource for developers with a great idea but needing initial support. The UNICEF Innovation Fund has similarly given grants/equity to blockchain startups (some involving stablecoins for communities) and even holds some treasury in crypto to deploy for such trials. The World Food Programme and UNHCR have opened the door for partnerships through their blockchain experiments – a developer might collaborate via initiatives like Stellar Aid Assist, essentially providing technology to large aid programs. Also, Oxfam’s “UnBlocked Cash” project (piloted in Vanuatu) used a stablecoin on a private Ethereum instance for disaster aid, in partnership with fintech Sempo, demonstrating NGOs are willing to trial solutions and partner with tech providers. These partnerships not only provide funding but also on-the-ground expertise and user bases to test with.

  • Development Finance Institutions and Alliances: Entities such as the World Bank, USAID, and regional development banks have begun exploring stablecoins in the context of remittances and financial inclusion. For example, the World Bank published research on tokenized remittances, and some development funds have sponsored hackathons on cross-border payments. USAID has funded research and small pilots (one report examined using Stellar for digital payments in aid delivery). The Gates Foundation’s Mojaloop open-source payment platform, while not using stablecoins yet, has a community that’s discussing how central bank digital currencies or stablecoins could interoperate for inclusion – a developer plugged into those communities could find support and a pathway to real deployments in national payment systems. Additionally, alliances like the Better Than Cash Alliance (a UN-hosted alliance of governments and companies for digital finance) have interest in how stablecoins can reduce cash reliance. Being aware of and involved in these initiatives can give developers access to policy advice, regulatory sandboxes, and sometimes funding or endorsements.

  • Corporate and Fintech Programs: Major fintech and crypto companies are sponsoring innovation in this space. Visa and Mastercard have both launched crypto integration programs – e.g., Visa has partnered with Circle to settle transactions in USDC, and Mastercard ran a program called Start Path Crypto which included some stablecoin startups focusing on emerging markets. Ripple’s Impact Fund provided $10+ million to NGOs (like Mercy Corps and others) to explore blockchain solutions; Ripple specifically partnered in the Kenyan herders project, contributing $25k in stablecoins. Stellar Development Foundation has an Enterprise Fund that has invested in companies building on Stellar (like Flutterwave for African payments). Celo’s Alliance for Prosperity connects over 100 organizations (from Grameen to PayPal to startups) all interested in blockchain for social impact – joining that alliance can lead to valuable mentorship and partnership opportunities. Exchanges like Binance (via Binance Charity) and Coinbase (via their philanthropy arm) have also funded pilot programs (Binance Charity did stablecoin donations in Uganda, for instance). Moreover, hackathons such as the annual ETHGlobal hackathons, Solana hackathons, etc., often have an “impact” or “financial inclusion” track sponsored by organizations looking to award prizes to promising ideas (and those prizes can be sizable seed funding).

  • Government and Regulatory Sandboxes: Some forward-thinking governments have created sandboxes or accelerators for crypto-inclusive finance. Bahrain and Abu Dhabi (UAE) have sandbox programs where a stablecoin remittance or microfinance project could be tested with regulatory supervision but without full licensing immediately. Singapore’s MAS ran a Global CBDC challenge that, while focused on central bank coins, also embraced ideas around privately issued stablecoins for inclusion. UK’s FCA has a sandbox that has admitted crypto asset projects; a stablecoin-based cross-border payment startup could apply and get temporary permissions to operate and iterate. Such programs often involve working closely with regulators – which can be advantageous in shaping sensible rules if the pilot succeeds. In Latin America, countries like Colombia and Mexico have fintech sandboxes under their fintech laws, which might allow stablecoin-related projects (Mexico’s fintech law regulates e-money and possibly could cover peso stablecoins). Leveraging these can not only ensure compliance but also signal to investors that the project is being built hand-in-hand with authorities.

  • Open-Source Communities and Academics: There are also less formal but important support systems in the open-source community. Projects like Mifos/Apache Fineract (open-source core banking software for microfinance) are exploring integration with crypto – a developer contributing there might integrate stablecoin wallets in a microfinance institution setting. Hack4Impact and university blockchain clubs (e.g., at UC Berkeley or MIT) often collaborate on social good projects and can rally talent to help a cause-driven startup. Academically, the MIT Digital Currency Initiative and Stanford’s blockchain program sometimes partner with NGOs to prototype solutions, bringing research credibility and technical audits.

In essence, developers and startups in this arena are not alone – a wide network of supporters is interested in the success of stablecoins for financial inclusion. Reaching out to these programs can provide essential resources: funding, expert guidance on regulatory compliance, access to pilot users, and credibility. Many successful case studies discussed earlier had backing from such partnerships (UNHCR with Stellar, Mercy Corps with Ripple, Airtm with Circle, etc.).

It’s also worth mentioning that as stablecoin use in underserved markets grows, local partnerships are key. Working with local mobile money providers, microfinance institutions, cooperatives, or telecoms can accelerate user adoption. For example, a developer might integrate a stablecoin wallet with a mobile money agent network (similar to how Wave in Senegal or MTN in Africa operate) to reach rural users – these partnerships help with cash-in/cash-out and trust-building, while the tech provider handles the blockchain side.

Finally, governments themselves are partnering in some cases. For instance, El Salvador, after its Bitcoin move, considered stablecoins for certain uses; Palau partnered with Ripple on a national stablecoin for USD; and Colombia reportedly ran a pilot for distributing subsidies on a blockchain wallet. These public-private partnerships indicate that being open to collaborating with central banks or finance ministries (when they show interest) could lead to groundbreaking projects (albeit with longer timelines).


In conclusion, stablecoins present a unique convergence of technology, finance, and social impact. The use cases that comply with existing regulations – like remittances, aid, and savings – have demonstrated powerful results in reaching the unbanked. Regulatory clarity is steadily improving in many jurisdictions, removing barriers to innovation. Developers have at their disposal an expanding arsenal of open-source tools and supportive platforms across multiple blockchains, lowering the technical hurdles. And importantly, a robust ecosystem of partners – from NGOs to fintech firms to enlightened regulators – is ready to back solutions that can improve lives and expand financial access. By thoughtfully combining these elements, developers can seize the opportunity to build the next generation of stablecoin applications that are not only groundbreaking but also compliant and inclusive – helping bring millions of people into the global financial fold.

Sources: Stablecoins enable faster, cheaper remittances and aid payments; UNHCR’s Stellar-based stablecoin aid to Ukrainian refugees; Regulatory frameworks like EU MiCA provide clarity; Singapore’s MAS stablecoin rules; MoneyGram and Stellar partnership for cash-to-USDC for the unbanked; Mercy Corps stablecoin pilot results; Airtm and Circle’s USDC case study (35% cost savings); Solana’s adoption for payments (PayPal PYUSD); Stellar’s developer tools and anchor network; Hedera’s Stablecoin Studio for compliant issuance; Mercy Corps Ventures Crypto for Good Fund impact; Stablecoin remittance cost reduction UK-Nigeria; Shopify and merchant stablecoin payments; and others as cited throughout.

Stablecoins in Business: Pain Points and Opportunities

· 47 min read
Dora Noda
Software Engineer

Introduction

Stablecoins – digital currencies pegged to stable assets like the US dollar – promise to streamline business transactions with near-instant settlement, low fees, and global reach . In theory, they combine the efficiency of crypto with the familiarity of fiat money, making them ideal for cross-border payments and commerce. The global B2B payments market exceeds $125 trillion annually and is plagued by high fees and slow settlements . Stablecoins have already seen over $10 trillion in transaction volume in 2023 , and use is growing. Yet despite this potential, mainstream business adoption remains limited. Companies face significant pain points – from regulatory hurdles to tooling gaps – that frustrate stablecoin use in daily operations . Identifying these friction points and the underserved segments affected can highlight low-hanging-fruit opportunities for developers to build tools and services that unlock stablecoins’ value.

This report analyzes the biggest challenges businesses encounter with stablecoins, underserved markets with unmet needs, and practical use cases where adoption is blocked by fixable frictions. We also pinpoint gaps in current infrastructure (e.g. accounting, compliance, invoicing, multi-currency support) and suggest where developer-friendly solutions (APIs, integrations, wallets) could generate significant ROI. The focus is on actionable insights, concrete examples, and areas where simple tools could make a big difference.

Key Pain Points for Businesses Using Stablecoins

Regulatory Uncertainty and Compliance Burdens

One of the foremost barriers is the uncertain regulatory environment surrounding stablecoins. Rules differ across jurisdictions and are evolving, leaving businesses unsure how to comply. Inconsistent or unclear regulations are frequently cited as a major hindrance to stablecoin adoption . For example, the EU’s new MiCA regulation will impose specific compliance requirements on stablecoin issuers and service providers in Europe . Companies must navigate licensing, reporting, and consumer protection rules that may apply to transacting in stablecoins, which can be daunting.

Moreover, firms worry about KYC/AML (Know Your Customer / Anti-Money Laundering) obligations when using stablecoins. Transacting on public blockchains means dealing with pseudonymous addresses, raising concerns about illicit finance. Businesses need to ensure they aren’t receiving or sending stablecoins from sanctioned or criminal sources. However, most stablecoins and crypto wallets don’t natively provide KYC/AML checks, so businesses must bolt on their own compliance processes. This is a pain point especially for smaller companies that lack compliance departments. Without robust tools, stablecoins can facilitate anonymous transfers – creating AML risk that regulators are increasingly wary of .

Tax and accounting compliance adds another layer of complexity. In many jurisdictions (e.g. the US), stablecoins are not legally treated as “money” or legal tender for tax purposes but rather as property or financial assets . This means using a stablecoin to make a payment could trigger tax reporting similar to selling an asset, even if its value stays at $1. Businesses must track cost basis and potential gains/losses on stablecoin transactions, which is cumbersome. Accounting standards haven’t fully caught up either – companies must determine if stablecoin holdings count as cash, financial instruments, or intangibles on their balance sheet . This uncertainty makes CFOs and auditors nervous. In short, the regulatory and compliance burden – from licensing, to KYC/AML, to tax treatment – remains a top pain point keeping businesses on the sidelines. Developer tools that automate compliance (KYC checks, address screening, tax calculations) could greatly reduce this friction.

Integration with Legacy Systems and Workflows

Even when a business is willing to use stablecoins, integrating them into existing systems is a challenge. Traditional payment infrastructure and accounting systems are not built for crypto. Companies can’t simply “plug and play” stablecoins into their invoicing, ERP, or treasury workflows . PYMNTS notes that adopting stablecoin payments often “requires technological upgrades, staff training and assurances” to integrate with legacy systems . For example, an accounts receivable system might need modification to record incoming USDC payments, or an e-commerce checkout might need an API to accept stablecoin transactions alongside credit cards. These integrations can be complex and costly, especially for firms without in-house crypto expertise.

Another issue is lack of standardization and interoperability. There are many stablecoin protocols and blockchains, but no universal standard that legacy systems can easily interface with. A payment provider described it as having to “stitch together different ecosystems that don’t really talk to each other” when bridging fiat and stablecoins . If a business pays suppliers in stablecoin but manages cash in bank software, there’s a gap. Multi-chain compatibility is also a headache – USDC exists on Ethereum, Solana, Tron, etc., and different partners may insist on different chains. **Cross-chain interoperability remains a challenge **, meaning a company might need to support multiple wallets or use bridge services to accommodate all counterparties. This adds operational complexity and risk.

Crucially, businesses demand that any new payment method integrates with their broader workflow. They need APIs, SDKs, and software that sync stablecoin transactions with their databases, accounting books, and user interfaces. Today, those tools are nascent. A stablecoin transaction on blockchain might require manual steps to reconcile (e.g. checking a block explorer and updating an invoice status by hand). Until integration is seamless, many firms will stick to what’s already connected (banks, Swift, card processors). Developer opportunity: Build middleware and integration tools that connect on-chain payments to off-chain business systems (for instance, software that logs stablecoin payments into QuickBooks automatically). As one report emphasized, **payment service providers must create APIs and tools that simplify incorporating stablecoins into enterprise workflows **. Solving integration pain through technology is key to broader stablecoin use.

Liquidity, Conversion and Financial Frictions

While stablecoins are designed to hold a stable value, businesses still face financial frictions around liquidity and conversion. For one, converting large sums of stablecoins to actual fiat currency (or vice versa) isn’t always trivial. Liquidity for large transactions can be limited, especially in certain stablecoins or on certain exchanges . A fintech CEO noted that when moving “enterprise-grade money” (hundreds of thousands of dollars) across borders via stablecoins, companies encounter **three major pain points: limited liquidity for large transactions, long settlement times, and complex integrations **. In other words, if a corporation tried to pay a $5 million invoice with stablecoins, they might struggle to exchange that volume back to fiat quickly without moving markets or incurring slippage, unless they have prime exchange partners. Stablecoins themselves settle on-chain in minutes, but off-ramping a large payment into a bank account can still take time, especially if local banking partners are involved (e.g. waiting for an exchange to wire out funds).

In many emerging markets, fiat on/off ramps are underdeveloped. A business in Vietnam receiving USDC might need to find a crypto exchange or OTC broker to convert to Vietnamese Dong – a process that may be informal, time-consuming, or expensive if local regulators restrict crypto trading. This lack of local conversion infrastructure is a bottleneck for using stablecoins in the last mile. Businesses prefer transactions that land directly in their bank in local currency; with stablecoins, an extra conversion step is needed and often falls on the recipient to handle. Developer solutions that embed conversion (so recipients can automatically swap stablecoin to the currency of choice) would address this need. In fact, platforms are emerging that pair traditional fiat infrastructure with stablecoin rails to make conversion seamless – for example, Stripe’s recent acquisition of the stablecoin platform Bridge is meant to connect stablecoin payments with standard payout channels .

Another friction is choosing the “right” stablecoin. The market offers a plethora – USDT, USDC, BUSD, DAI, TrueUSD, and more – each with different issuers and risk profiles. This abundance “just confuses potential users, and it’s going to turn away some” businesses . A payment executive noted that many business owners are asking: “Why are there so many stablecoins, and which one is safer?” . Determining which stablecoin to trust (in terms of reserve backing and stability) is non-trivial. Some firms may only be comfortable with fully regulated coins (like USDC with monthly attestations), while others might prioritize the one their partners use (often USDT due to liquidity). Counterparty risk and trust in the issuer is a pain point – for instance, Tether’s USDT has vast adoption but a less transparent reserve history, whereas Circle’s USDC is transparent but was temporarily hit by a depeg scare when a portion of reserves were stuck during a bank failure . Businesses do not want to hold significant value in a stablecoin that could suddenly lose its peg or be frozen by an issuer. This risk was highlighted in a Deloitte analysis: **depegging and issuer solvency are key risks that businesses must consider with stablecoins **. Managing these risks (perhaps by diversifying stablecoins or having instant conversion to fiat) is an extra task for companies.

Finally, foreign exchange (FX) implications can be an issue. Most stablecoins are USD-pegged, which is useful globally, but not a panacea. If a European company’s books are in EUR, accepting USD stablecoins introduces FX exposure (albeit mild compared to accepting volatile crypto). They might prefer a EUR-pegged stablecoin for invoices, but those (e.g. EUR stablecoins) have much lower liquidity and acceptance. Similarly, businesses in countries with unique currencies often have no stablecoin option in their local currency. This means they use USD stablecoins as an intermediate value – which helps avoid local inflation, but eventually they need to convert to pay local expenses. Until multi-currency stablecoin ecosystems mature, developers could add value by building easy FX conversion tools (so a payment in USDC can be quickly swapped to, say, a EUR or NGN stablecoin or to fiat). In summary, liquidity and conversion bottlenecks – particularly for large amounts and non-USD currencies – remain a pain point. Any service that improves convertibility (through better liquidity pools, market-making, or integration with banking networks) would alleviate a key friction.

User Experience and Operational Challenges

For many businesses, the operational side of using stablecoins is a new frontier full of practical challenges. Unlike traditional banking, using stablecoins means dealing with blockchain wallets, private keys, and transaction fees – elements that most finance teams have little experience with. User experience (UX) issues are a notable barrier: “Gas fees and onboarding complexities remain barriers” to wider stablecoin adoption . If a company tries to use stablecoins on Ethereum, for example, they must manage ETH for gas or use a layer-2 solution – details that add friction and confusion. High network fees at times can erode the cost advantage for small payments. While newer blockchains with lower fees exist, choosing and navigating them can be overwhelming for a non-crypto business user.

There is also the challenge of wallet management and security. Holding stablecoins requires either a secure custodial account or self-custody of private keys. Self-custody can be risky without proper knowledge – losing a key means losing funds, and transactions are irreversible. Businesses are used to calling a bank to help if an error occurs; in crypto, mistakes can be final. Multisignature wallets and custody providers (like Fireblocks, BitGo, etc.) exist to add security for enterprises, but those may be costly or geared toward larger institutions. Many SMEs find no easy-to-use, affordable wallet solution that provides corporate controls (e.g. multi-user access with approvals) and insurance on holdings. This gap in enterprise-friendly wallet UX makes stablecoin handling daunting. A simple, safe wallet app tailored for businesses (with permissions, spending limits, and recovery options) is still an unmet need.

Another operational issue is transaction handling and reversibility. In traditional payments, if a mistake is made (wrong amount or payee), banks or card networks can often reverse or refund the transaction. Stablecoin payments are final once confirmed on-chain; there is no built-in dispute resolution. For B2B transactions between trusted parties this may be acceptable (they can communicate and refund manually if needed), but for customer payments it poses a problem. For instance, a small retailer accepting stablecoin has no recourse if a customer underpays or sends to the wrong address – except to rely on the customer to fix it. Fraud and error management thus become the business’s responsibility, whereas today card processors handle a lot of fraud detection and eat the cost of chargebacks. As one commentator noted, stablecoins by themselves don’t solve ancillary “jobs-to-be-done” in payments like fraud management, dispute coordination, and regulatory compliance . Merchants and businesses would need new tools or services to cover these functions if they move to direct stablecoin payments. This lack of a safety net is a pain point that makes some businesses hesitant to use stablecoins beyond controlled situations.

Finally, educational and cultural barriers fall under UX challenges. Many decision-makers simply don’t understand how stablecoins work, and that lack of understanding breeds mistrust. If a finance manager doesn’t grasp private keys or is unsure how to explain a stablecoin transaction to auditors, they will likely avoid it. Likewise, if counterparties (suppliers, customers) are not asking to pay or be paid in stablecoin, a business has little immediate incentive to offer it . In fact, a recent industry panel observed that “at the moment, there is simply not the demand for beneficiaries to receive funds in stablecoins” for many small businesses and consumers . This indicates a chicken-and-egg scenario: without easy user experiences, mainstream demand stays low, and without demand, businesses see no reason to push for stablecoin options. Overcoming UX hurdles – through better interfaces, education, and perhaps abstracting away the crypto “weirdness” – is necessary to unlock broader adoption.

Accounting and Reporting Complications

Stablecoin usage also runs into back-office complications in accounting, bookkeeping, and reporting. Traditional financial systems expect transactions in government currencies; inserting a digital token that behaves like cash but isn’t officially cash creates reconciliation headaches. A key pain point is the lack of accounting tooling and standards for stablecoins. Businesses need to track stablecoin transactions, value holdings, and report them correctly on financial statements. However, guidance has been murky: depending on circumstances, stablecoins might be treated as **financial assets or as intangibles under accounting standards **. If treated as an intangible asset (as Bitcoin has been under U.S. GAAP historically), any decline in value below cost must be impaired on the books, but increases in value aren’t recognized – an unfavorable treatment for something meant to stay at $1. Recently there have been efforts to allow fair-value accounting for digital assets, which would help, but many companies’ internal policies haven’t adapted yet. Until it’s crystal clear that a USD stablecoin is as good as a dollar for accounting purposes, finance teams will be uneasy.

Reporting and audit trail is another issue. Stablecoin transactions on blockchain are transparent in theory, but linking them to specific invoices or contracts requires careful record-keeping. Auditors will ask to see proof of payment and ownership – which may involve showing blockchain transactions, wallet ownership proofs, and conversion records. Most companies lack in-house expertise to prepare such audit documentation. Tools like block explorers are helpful but not integrated with internal systems. Additionally, valuing end-of-period holdings (even if stable at $1, there may be slight market deviations or interest earned in some cases) can be confusing. There may also be treasury policy questions – e.g., can a company count USDC as part of its cash reserves for liquidity ratios? Many likely do, but conservative auditors might not give full credit.

On the software side, common accounting packages (QuickBooks, Xero, Oracle Netsuite, etc.) do not natively support crypto transactions. Companies end up using workarounds: manual journal entries to record stablecoin movements, or third-party crypto accounting software (like Bitwave, Gilded, or Cryptio) that can sync blockchain data to their ledgers . These are emerging solutions, but adoption is still low, and some are focused on larger enterprises. Small businesses are often left doing manual reconciliation – e.g., an accountant copying transaction IDs into Excel – which is error-prone and inefficient. This lack of easy accounting integration is a clear unmet need. As an example, one crypto accounting platform advertises how it can integrate stablecoin payments into ERP systems and handle the custody and wallet tracking , underscoring that a market for such tools is forming.

In summary, from an accounting perspective, stablecoins currently introduce uncertainty and extra work. Businesses crave clarity and automation: they want stablecoin transactions to be as easy to account for as bank transactions. Until that happens, this remains a pain point. Tools that automatically reconcile stablecoin payments with invoices, maintain audit trails (with URLs to blockchain proofs), and generate reports compliant with accounting standards would significantly reduce this friction. Ensuring tax reporting is handled (for instance, issuing 1099 forms for stablecoin payments if required under new IRS rules ) is another area a tool could assist with. Developers who can bridge the gap between blockchain records and accounting records will help remove a major blocker for corporate use of stablecoins.

Underserved Market Segments and Blocked Use Cases

Despite the challenges above, certain market segments stand to benefit greatly from stablecoins – and many are already experimenting out of necessity. These segments often face acute pain points with current financial services, meaning stablecoins could be a game-changer if specific frictions are resolved. Below we highlight some underserved segments or use cases, where there are clear unmet needs that developer-driven solutions could address.

SMEs in Emerging Markets (Cross-Border Payments)

Small-to-medium enterprises in emerging markets are among those most harmed by the status quo in payments, and thus prime candidates for stablecoin adoption . These businesses frequently deal with cross-border transactions – paying suppliers, receiving customer payments, or remittances – and they suffer from high fees, slow processing, and poor access to banking. For instance, a payment from a small manufacturer in Mexico to a supplier in Vietnam might go through 4+ intermediaries (local banks, correspondent banks, forex brokers), taking 3-7 days and costing $14-$150 per $1000 sent . This is both slow and expensive, hurting the SME’s cash flow and margins.

In regions with weak banking infrastructure or capital controls (parts of Latin America, Africa, Southeast Asia), SMEs often struggle to even make international payments. They resort to informal channels or costly money transmitters. Stablecoins offer a lifeline: a dollar-pegged token that can zip across borders in minutes, avoiding correspondent bank chains. As a16z notes, sending $200 from the U.S. to Colombia via stablecoin can cost less than $0.01, whereas traditional rails cost around $12 . Those savings are life-changing for SMEs operating on thin margins. Additionally, stablecoins can be accessible where dollar bank accounts are not – providing an inflation-resistant medium in countries with volatile currencies . Businesses in places like Argentina or Nigeria already use USD stablecoins informally to store value and transact, because local currency devaluation is extreme.

However, these emerging-market SMEs are largely underserved by current stablecoin services. They face the friction of converting between fiat and stablecoin, as discussed, and often lack trusted platforms to facilitate this. Many simply hold stablecoins on exchange accounts or mobile wallets, without integration into their billing systems. There’s a need for easy tools: for example, a multi-currency invoicing platform that lets an SME bill a foreign client in their home currency, but receive the payment in stablecoins (auto-converted from, say, the client’s credit card or local bank transfer) . The SME could then quickly swap the stablecoins to local fiat or spend them. Such tools would hide the crypto complexity and present stablecoins as just another currency option.

Geographically, regions like Latin America, Sub-Saharan Africa, the Middle East, and parts of Southeast Asia have thriving informal stablecoin usage but minimal formal infrastructure. A report on stablecoins and financial inclusion notes that while stablecoins are used in high-inflation economies, adoption is hampered in areas with low internet penetration or digital literacy . That suggests a need for user-friendly mobile apps and education targeted at these markets. If, say, a Nigerian import/export firm could use a simple app to send USDC to a Chinese supplier (and that supplier gets RMB in their bank via an integrated off-ramp), it would fill a huge gap. Today, a few crypto fintechs (like Bitso in LATAM or MPesa-like crypto wallets in Africa) are moving this direction, but there’s ample room for more players focused on SME use cases.

In summary, emerging-market SMEs are an underserved segment where stablecoins solve real problems – currency instability and expensive cross-border payments – but adoption is blocked by lack of local support and easy tools. Developers can tap into this by building localized solutions: stablecoin payment gateways that connect to local banks/mobile money, SME-friendly wallets with local language support, and platforms to auto-convert exotic currencies to stablecoins and then to major currencies . This is precisely what one fintech, Orbital, did – starting by helping merchants repatriate profits from emerging markets using stablecoins, cutting settlement from 5 days to same-day . The success of such models shows the demand is there if the pain points are addressed.

Cross-Border Trade and Supply Chain Finance

Global trade involves countless B2B payments between importers, exporters, freight companies, and suppliers. These are typically high-value and time-sensitive transactions. Stablecoins are very promising in this domain because they can remove delays and banking dependencies that plague trade payments. For example, an exporter shipping goods often waits days or weeks for a letter of credit or wire payment to clear. With stablecoins, payment could be released as soon as goods are delivered (nearly instantly, even across time zones). This improves cash flow for suppliers and can reduce the need for trade financing.

A concrete use case: A logistics company in Germany uses stablecoins to collect payments from retailers in Southeast Asia, immediately converts to EUR, and then pays its contractors in Eastern Europe in the same day . This three-continent transaction flow (Asia → Europe → Eastern Europe) can be accomplished through stablecoins far more efficiently than through banks. In Orbital’s example, the process included auto-conversion of various currencies to stablecoin and back to EUR, simplifying a previously cumbersome cross-border FX workflow . Similarly, companies can pilot entering a new market without upfront banking integration – e.g. a trading firm testing Brazil could accept stablecoin deposits from Brazilian clients instead of integrating with the local banking network PIX, saving cost and time for a market test . These scenarios highlight stablecoins acting as a universal settlement layer for trade, avoiding the patchwork of local payment systems.

Despite the clear benefits, most traditional import/export businesses have not adopted stablecoins yet. This is an underserved niche largely due to conservatism and lack of tailored solutions. Large multinationals have treasury departments that hedge currency and use banks; small importers/exporters often just bear the fees or use brokers. If there were easy-to-use platforms that integrate stablecoins into trade finance processes (for example, tying stablecoin escrow payments to shipping documents or IoT sensors for delivery), it could gain traction. One hurdle is that trade transactions often require contracts and trust frameworks (letters of credit ensure goods and payment exchange properly). Smart contracts on stablecoins could replicate some of this – a stablecoin could be put in escrow and released automatically upon delivery confirmation. However, building such systems in a user-friendly way is a developer challenge that few have tackled at scale.

Another underserved aspect is supply chain payments to countries with capital controls or sanctions. Companies doing business in markets under sanctions or with unstable banking (e.g. certain African or Central Asian countries) struggle to move money for legitimate trade. Stablecoins can provide a channel if done carefully under regulatory allowances (e.g. humanitarian goods or exempted trade). There’s an opportunity for specialized trade facilitators that use stablecoins to bridge gaps when banks cannot operate, all while ensuring compliance.

In short, cross-border trade is ripe for stablecoin solutions but needs integrated platforms bridging the old and new. The partnership of Visa and Circle to use USDC for global settlement shows institutional interest in this direction . Until now, trade-focused stablecoin adoption has been limited to crypto-savvy firms and pilot programs. Developers can target this underserved use case by building tools like stablecoin escrow services, integrations between logistics software and blockchain payments, and simplified interfaces for suppliers to request stablecoin payment (with one-click conversion to their home currency). The value unlocked – faster turnover of capital, lower fees (potentially up to 80% cost reduction on transactions ), and more inclusive global trade – represents a significant opportunity.

Global Freelancers, Contractors, and Payroll

In the era of remote work and the gig economy, businesses frequently need to pay people across borders – freelancers, contractors, or even full-time employees working abroad. Traditional payroll and banking often falter here: international wire fees, delays, and currency conversions eat into payments. Freelancers in countries with weak banking may wait weeks to receive a check or PayPal transfer, and lose a chunk to fees. Stablecoins present an attractive alternative: a company can pay a contractor in USD stablecoin within minutes, which the contractor can then hold as USD value or convert to local currency. This is especially valuable in countries where local currency is depreciating; many workers prefer stable USD over volatile local money.

Some forward-thinking companies and platforms have started offering crypto payment options. For instance, certain freelance job platforms enable payment in USDC or Bitcoin. However, this is not yet mainstream, and many smaller businesses lack a simple way to payroll via stablecoins. It’s an underserved need because the demand is there – anecdotal evidence shows growing numbers of freelancers request payment in crypto to avoid bank hassles – but solutions are fragmented. Each company might hack together their own process (e.g., manually sending USDC from a crypto exchange account), which doesn’t scale or integrate with payroll systems.

Key frictions that need solving in this segment include: generating pay stubs or invoices for stablecoin payments, handling tax deductions or benefits if needed, and tracking payments for multiple recipients easily. A business paying 50 contractors in stablecoin might want one batch process rather than 50 manual transfers. They also need to collect wallet addresses securely (and ensure they belong to the right person, tying identity to address to avoid mispayment). Additionally, compliance is crucial – businesses have to report these payments and possibly ensure the recipient isn’t in a sanctioned region.

An opportunity here is for developers to create crypto payroll platforms. Imagine a service where a company uploads a payroll CSV, and the platform handles sending stablecoins to each recipient’s wallet, emails them a payment confirmation or slip, and logs the transaction details for accounting. The platform could even handle currency conversion if the company wants to pay $1,000 but the freelancer asks to receive in local currency stablecoin or fiat – effectively acting as a crypto-powered global payroll processor. Some startups (e.g. Request Finance, or Franklin as mentioned in search results ) are starting to do this, but no dominant player has emerged. Integration with popular HR or accounting software would also ease adoption (so that paying an invoice in stablecoin is as easy as any other payment method).

Another underserved group is NGOs and non-profits paying staff or grantees in challenging environments. Stablecoins have been used, for example, to pay aid workers in regions where banking systems are down, or to deliver aid to beneficiaries directly. The principle is similar: a reliable digital dollar that can be received on a phone. Tools developed for businesses to manage stablecoin payouts can often apply here too, expanding the impact.

In summary, global payroll and contractor payments represent a use case with clear benefits but currently clunky execution. By solving the pain points (address management, batch payments, withholding/tax calculations, records for compliance), developers can unlock stablecoins as a normal payroll option. Notably, these payments are usually low-to-medium value but high volume, which plays to stablecoins’ strengths (micro-fees, speed). A gig platform using stablecoins reported that they could pay thousands of freelancers globally within minutes, reducing delays and fees, and access a wider talent pool without banking frictions . That illustrates the potential if the right infrastructure is in place.

Small Retailers and High-Fee Industries

Customer-facing small businesses – like retail shops, cafés, restaurants, and e-commerce sellers – operate on thin margins and often feel disproportionately burdened by payment fees. Every card swipe takes ~2-3% plus a fixed fee, which for a $2 coffee can be 15% of the transaction . These fees effectively tax small transactions heavily, hurting mom-and-pop stores and quick-serve businesses. Stablecoins offer a vision of fee-free (or very low fee) payments that could save these businesses significant money. If a café could accept a stablecoin payment with no middleman, that ~$0.30 on a $2 purchase could be saved as profit, potentially boosting their bottom line markedly over time .

However, this segment is currently very underserved by stablecoin solutions, because bridging the gap between crypto and everyday consumers is difficult. The average customer isn’t carrying a crypto wallet to buy coffee, and the merchant wouldn’t know how to handle price volatility – they just want $2 worth of value. Some tech-savvy cafes (in cities like SF or Berlin) have experimented with accepting crypto, but it’s niche. The opportunity here is to create payment solutions that hide the crypto part for both merchant and customer, yet leverage stablecoins underneath for cost savings. For example, a point-of-sale system that lets a customer scan a QR code and pay via a stablecoin wallet (or even convert from their bank on the fly), and the merchant instantly sees the confirmed payment in their currency. Services like this are starting: e.g., companies like **Stripe have announced stablecoin payment support with lower fees (1.5% vs ~2.9% for cards) **, showing that even big payment processors see demand to lower costs. Stripe’s approach likely converts stablecoin to fiat for the merchant instantly, simplifying things.

Still, outside of early pilots, few small retailers have the means to accept stablecoins directly. Why? Beyond consumer adoption, reasons include lack of easy-to-use apps, fear of crypto’s reputation, and absence of integration with their sales systems. A coffee shop uses a simple card reader or POS terminal that ties into inventory and accounting – any crypto solution must seamlessly fit into that setup to be viable. That means developers should focus on integrations with existing retail software (POS, e-commerce plugins). Encouragingly, there are e-commerce plugins for WooCommerce, Magento, etc., that enable stablecoin checkouts . A European online retailer used such plugins to accept stablecoins from Latin American customers who lacked reliable traditional payment options, and found it “boosting sales” with faster, cheaper payments auto-converted to EUR . This example shows that when implemented well, stablecoin acceptance can expand a business’s market (here, reaching customers who might otherwise be unable to purchase due to local payment issues).

High-fee industries like online gaming, digital content, or adult industries (which get hit with high payment processor fees or bans) are also underserved segments that could leap on stablecoins if friction is reduced. These industries often have global user bases and face chargeback/fraud issues that stablecoins could alleviate (no chargebacks in crypto). For them, stablecoins could solve both cost and access (e.g. adult content platforms have been debanked, so crypto is an alternative). The pain points mirror those of small retailers: need for discrete, user-friendly payment interfaces and mechanisms for trust/refunds since card protections won’t apply.

Overall, while consumer/retail payments with stablecoins are still nascent, the segment represents a large opportunity once base-level frictions (wallet UX, point-of-sale integration, buyer protection mechanisms) are addressed. The first movers will likely be SMBs with strong customer communities and high payment costs – as a16z predicts, coffee shops, restaurants, and stores with captive audiences may lead the way in 2025, leveraging stablecoins to save on fees . These early adopters will need support in the form of reliable apps and perhaps guarantees (maybe a third-party that insures against certain fraud). Developers can provide that by building the “Stripe for stablecoins” or the “Square terminal of crypto” as easy plug-ins. The reward is significant: if stablecoin payments shave even 1-2% off costs, that can increase a small business’s profits by double-digit percentages – a huge value proposition.

Gaps in Current Tooling and Infrastructure

From the above pain points and use cases, it’s clear that many infrastructure gaps are preventing stablecoins from reaching their full utility for businesses. These gaps represent areas where new tools, services, or platforms are needed. Below are some of the most glaring deficiencies in today’s stablecoin ecosystem for business use, along with the potential each has for improvement:

  • Accounting and Financial Reporting Tools: Traditional accounting software does not handle crypto well, forcing clunky workarounds. Businesses lack easy tools to automatically record stablecoin transactions, track valuations, and produce compliant reports. Opportunity: Develop integrations (or plugins) for popular accounting systems (QuickBooks, Xero, SAP) that treat stablecoin transactions like regular bank transactions. This includes fetching blockchain transactions, mapping them to invoices or accounts, and updating balances in real-time. It should also handle classification (e.g. mark stablecoins as cash equivalents or inventory as appropriate) consistent with the latest accounting standards. Given that holders of stablecoins must assess how to classify them on financial statements , software could guide users through that and apply consistent rules. Additionally, providing audit logs linking each ledger entry to a blockchain transaction hash would simplify audits. Some startups (Gilded, Bitwave) are working on this, but a lot of the market (especially mid-sized firms) is still untapped.

  • Tax and Regulatory Compliance Solutions: Similar to accounting, tax compliance for stablecoin transactions is largely manual today. Tools like TaxBit and CoinTracker exist for crypto, but companies could use specialized features for stablecoins given the volume of transactions can be high. For example, automatically calculating any gains/losses on stablecoin dispositions (which might be near zero most of the time, but still reportable), generating IRS Form 1099-DA or equivalent for payments made in digital assets , and monitoring transactions against sanctions lists. KYC/AML tools are another gap – businesses need a way to easily identify counterparties in stablecoin deals. While big exchanges and some fintechs have compliance APIs, a developer could create a lightweight API or software that scans wallet addresses for risk (using public data or partnering with blockchain analytics) and provides a simple dashboard for a company’s compliance officer. This would allow even smaller businesses to confidently accept stablecoins, knowing they’ll be alerted to any red flags (e.g. if an incoming payment came from a wallet linked to hacks or blacklists). In essence, making compliance “plug-and-play” for stablecoin transactions would remove a big burden from businesses who don’t want to become crypto compliance experts.

  • Invoicing and Payment Request Platforms: Unlike credit card or bank payments, there isn’t a ubiquitous, user-friendly way to request a stablecoin payment from a customer or client. Many businesses resort to emailing a wallet address or QR code and asking the payer to confirm once sent. This is error-prone and unprofessional. A clear gap is an invoicing platform for stablecoins: a service where a business can issue an invoice (denominated in fiat or stablecoin), and the payer can click a link to pay with stablecoins easily. Upon payment, the platform would notify both parties and update the invoice status. Ideally, it would also handle things like exchange rate lock-in – e.g., if an invoice is in EUR but paid in USDC, it calculates the correct amount of USDC at that time and perhaps offers a brief window where that quote is valid. By handling these details, it removes friction and uncertainty (no more “did I send the right amount?” worries). Such tools could also integrate a payment gateway that accepts multiple stablecoin types, giving flexibility to the payer. For instance, a freelancer could invoice $500 and the client could pay with USDC, USDT, or DAI on various networks, with the platform converting and delivering one consolidated stablecoin to the freelancer’s account. This kind of multi-option invoicing is not common yet, but it’s a low-hanging fruit given the technology largely exists (it’s about packaging it neatly for users).

  • Multi-Currency and FX Conversion Support: Today’s stablecoin infrastructure is heavily USD-centric. Businesses operating internationally often deal with USD, EUR, GBP, etc. There’s a gap in tools that handle multi-currency stablecoin operations seamlessly. For example, a company might want to hold a balance in USD stablecoins but also easily convert to Euro stablecoin when needed to pay European partners, all within one platform. While exchanges allow trading, a dedicated tool for businesses could present this as a simple currency conversion within their wallet, abstracting the trading aspect. Additionally, a platform that automatically picks the best stablecoin rail for a given corridor could be valuable – e.g., if sending value to a partner in Brazil, the tool might convert USD stablecoin to a BRL-pegged stablecoin or to USDC and instruct conversion to BRL via a local exchange. Right now, businesses would have to manually figure out these steps. Developer opportunity: Create services that pool liquidity from multiple sources and offer one-click conversion between fiat and various stablecoins (and between different stablecoins). This can be offered via API for other fintechs to integrate as well. Essentially, become the “Wise (TransferWise) of stablecoins”, optimizing FX routes but using crypto rails where advantageous . Some fintechs like MuralPay advertise multi-currency invoice and payment support leveraging stablecoins , which indicates the demand. But more competition and expansion to new currency corridors are needed to truly serve global business needs.

  • Enterprise Wallets and Custody Solutions: As noted earlier, managing stablecoin wallets is non-trivial for businesses. There’s a gap in secure, user-friendly enterprise wallets that allow multiple users and permissions. Current enterprise crypto custodians focus on large institutions and often require high fees. Smaller businesses could use a wallet that, for instance, allows the finance team to view balances, the CFO to approve large payments, and a clerk to initiate transactions – all with appropriate safeguards. Additionally, integrating backup and recovery mechanisms (like social recovery or hardware key sharding) would address fears of lost access. Some solutions like Gnosis Safe (multisig wallet) exist, but their interfaces are still quite technical. Developers could build on these protocols to create a polished app tailored for businesses. Another aspect is custody insurance: businesses are used to bank deposits being insured (FDIC, etc.). Crypto deposits are not, but a wallet solution that includes an insurance policy or guarantee for the stablecoins held (up to a limit) could attract businesses who are on the fence due to risk. This might involve partnerships with insurers, but offering it via a simple interface would fill a trust gap.

  • Fraud and Dispute Management Services: As stablecoins take off in payments, there will be a need for third-party services that provide some of the protections of traditional payment networks. For example, an escrow service that can hold stablecoins for a transaction and release them when both buyer and seller are satisfied (useful for marketplaces or commerce to mitigate fraud). Or a dispute resolution protocol where a neutral party (or algorithm) can arbitrate if a refund is warranted. These are more complex to build (often more business process than technology), but developers could create tools that integrate with stablecoin payment flows to add an optional layer of protection. This would particularly help with consumer-facing use cases where lack of chargebacks is currently seen as a negative. While not a “tooling” gap in the pure tech sense, it’s an infrastructure/service gap that, if filled, would make businesses more comfortable using stablecoins at scale.

In essence, the current stablecoin infrastructure has been built primarily for crypto traders and decentralized finance users, not for everyday business operations. Bridging that gap requires building the same kind of surrounding infrastructure that fiat money has: accounting systems, compliance checks, invoicing, payroll, treasury management, and user-friendly custody. Each gap identified above is an opportunity for developers and entrepreneurs to create value by bringing stablecoin-based systems up to par with the convenience of traditional finance (while retaining the advantages of speed, cost, and openness).

Developer Opportunities: Low-Hanging Fruit with High ROI

Given the pain points and gaps discussed, there are several promising areas where developers can build solutions that quickly add value. These are “low-hanging fruit” in the sense that the need is clear and pressing, and the solutions are within reach using current technology. By targeting these areas, developers can not only solve real problems (and potentially capture a loyal user base) but also accelerate stablecoin adoption in the business world. Here are some of the most viable opportunities:

  • Seamless Stablecoin Payment Gateways: Develop an easy-to-integrate payment gateway (like a Stripe or PayPal module) that enables businesses to accept stablecoin payments on their website or app. The gateway should handle multiple stablecoins and networks, abstracting that complexity from the merchant. Crucially, it should offer instant conversion to fiat (or to the merchant’s desired stablecoin) to mitigate volatility and simplify accounting. By providing a stable API and dashboard, developers can let businesses add a “Pay with USDC/USDT” option with minimal coding. This addresses the integration pain directly and opens merchants to new customers. For example, an online store using such a gateway could easily start selling to customers in countries where credit cards don’t work well, because now those customers can use stablecoins. The ROI for merchants is tangible: lower transaction fees and possibly new sales . As cited earlier, an EU retailer reached Latin American buyers by adding stablecoin checkout, avoiding costly local payment methods . A developer who provides that capability broadly could tap into a global market of e-commerce and SaaS companies looking for cheaper, global payment options.

  • Stablecoin-to-Fiat On/Off-Ramp APIs: One big friction is getting money in and out of stablecoins. A developer opportunity is to build robust on/off-ramp services with an API. This would allow any application to programmatically convert fiat to stablecoin or vice versa, through local bank transfers, cards, or mobile wallets. Essentially, acting as a bridge between banking systems and blockchain. A business could integrate this API to automatically cash out stablecoins to their bank at day’s end, or to fund a wallet from their bank when they need to make a payment. By handling compliance (KYC/AML) in the background, such a service would remove a huge barrier. Companies like Circle and fintech startups are working on this (e.g., Circle’s APIs for USDC, or regional players like Bitso for LATAM), but gaps remain especially in underserved currencies and countries. A network of local partners might be required, but even focusing on a few high-need corridors (say, USDC to Nigerian Naira, or Euro to USDC) can capture significant volume. Every SME that currently goes through a convoluted process on an exchange to convert funds would prefer a one-click solution integrated in their finance software.

  • Crypto Invoicing and Billing Software: As described, there’s demand for tools to create and manage invoices to be paid in stablecoins. A developer could create a web app (or add-on to existing invoicing software) that lets businesses issue professional invoices where the payment method is a stablecoin transaction. The software can generate a unique deposit address or payment link for each invoice and monitor the blockchain for payment. Once detected, it can automatically mark the invoice as paid and even initiate a conversion to fiat if the business wants. By preserving the familiar format of invoices and just changing the payment rail, it requires little new learning from businesses and their customers. This addresses a very specific but common need – how to request money in stablecoin – which is currently solved with ad-hoc manual communication. Concrete example: a freelancer sends an invoice of $1,000 to a client; the client opens a link, sees a request for 1,000 USDC (with the current equivalent in their preferred currency, if needed), and sends it; both get a receipt. This process could save days of waiting compared to international bank wires and cut fees dramatically. Given the rise of freelance and consultant work across borders, such a tool could see rapid adoption in those communities.

  • Stablecoin Payroll and Mass Payout Systems: Another actionable opportunity is building a platform for mass payouts in stablecoins, tailored for payroll or vendor payments. This would allow a business to upload a list (or integrate via API) of who to pay and how much, and the platform takes care of the rest – converting currencies if needed and distributing stablecoins to each recipient’s wallet. It can also handle sending out notification emails with payslips or payment details. By integrating compliance checks (verifying the wallet belongs to the intended recipient, screening against sanctions lists, etc.), it gives companies confidence to use it at scale. This type of solution would directly target the pain of companies that have multiple international contractors or remote employees, replacing a process that might involve multiple bank wires or high-fee services. A platform called Transfi, for instance, highlights that stablecoin payout solutions are increasingly used to complement cross-border Swift transactions due to speed and cost benefits . A developer solution here could plug into existing HR or accounts payable systems, making it easy for a company’s finance team to adopt. There’s potential for a subscription or transaction-fee business model, given the value saved. Additionally, by handling exchange to local fiat for those who want it, it can cater to recipients who aren’t crypto-savvy – they just see that they got paid, with stablecoins as the behind-the-scenes vehicle.

  • Integrated Compliance and Monitoring Tools: Many businesses worry about the compliance aspect of using stablecoins – “Are we allowed to do this? What if the funds are tainted?” Developers can seize the opportunity by offering compliance-as-a-service for stablecoin transactions. This could be an API or software that automatically checks each transaction against certain rules: e.g., it can flag if a stablecoin payment came from a wallet associated with known fraud or if it exceeded a certain threshold requiring KYC. It could also help generate reports needed by regulators (like a log of all digital asset transactions in the quarter). By packaging this into an easy tool, developers take a complex task off the business’s plate. Think of it as the Plaid or Alloy (fintech compliance APIs) equivalent for on-chain payments. As regulation tightens, such tools will become not just nice-to-have but necessary, especially if governments mandate more reporting on crypto transactions. Early movers in providing compliance solutions will become the go-to providers that other services integrate. This might not be a consumer-facing product but rather developer-facing (an API) – yet it’s crucial for enabling other products (like the payment gateways and payroll systems mentioned above) to be legally viable for businesses. In short, solving compliance pain through tech unlocks the ability for businesses to use stablecoins without fear.

  • Multi-Network and Stablecoin Aggregators: Given the fragmentation (so many stablecoins and blockchains), a useful developer project is an aggregator that supports all major stablecoin types and networks under one interface or API. This service would let a business accept or send stablecoins without worrying about the specific type. For example, a business could say “I only care about receiving USD value” – the aggregator could provide an address that accepts USDC, USDT, DAI, etc., on various chains, detect the incoming payment, and consolidate it for the user, converting if necessary. This removes the headache of “which stablecoin do we support?” and allows businesses to safely accept whatever the payer has, which increases flexibility. Likewise for sending – a business could input a destination (maybe the recipient’s preference or let the service find the cheapest way to deliver $X to that country) and the aggregator handles choosing the stablecoin/chain and execution. Such a tool reduces confusion and error (no more sending the wrong token to the wrong network). It could charge a small fee or spread on conversion for the convenience. With the plethora of stablecoins likely to persist (as noted, having many options is confusing users ), an aggregator becomes quite valuable. It’s essentially offering interoperability as a service, something the Orbital article cited as an area where early developments offer hope . By being chain-agnostic, this also future-proofs businesses against stablecoin market changes (if one coin falls out of favor, the aggregator just uses another under the hood).

  • Stablecoin Financing and Credit Services: This is a bit further afield from just payments, but it’s worth noting – developers could build services around working capital and credit using stablecoins. For example, enabling businesses to earn yield on idle stablecoin balances (through safe DeFi lending or interest-bearing accounts) to improve treasury income. Or providing short-term credit in stablecoins for suppliers who need liquidity (kind of like invoice factoring but via crypto). These are more complex opportunities but could be highly valuable in underserved markets where getting a bank loan is hard but a DeFi protocol might provide an advance against stablecoin receivables. Such innovations can drive adoption because they offer something beyond what traditional finance does. If a small exporter knows that by using stablecoin payments they also gain access to a quick line of credit or yield options, they have extra incentive to switch. Developers in the crypto space are exploring “DeFi for businesses” and this could integrate with stablecoin payment platforms.

To illustrate the potential impact of capturing these opportunities: consider transaction fees and cost savings. If a developer’s solution enables even a 1% reduction in payment costs, that can translate to huge savings at scale – e.g., Walmart could save on the order of $10 billion in card fees per year, theoretically boosting profitability by over 60% if such costs were eliminated . While that’s an extreme example, it shows the magnitude of value in replacing legacy payments. Realistically, stablecoin solutions might cut costs by 20-50% in various scenarios , which is still significant. Developers can capture a slice of that value (e.g., charge 0.1% of transactions) and still make clients better off.

Additionally, the strategic timing is good. Large players like Visa, Mastercard, Stripe, and PayPal are all making moves toward stablecoins (Visa settling in USDC , Stripe with stablecoin payouts , PayPal launching its own USD stablecoin, etc.). This validates the market and will increase confidence. But those big players will likely serve other big enterprises first; smaller businesses and niche segments might be overlooked initially – which is where independent developers can shine by focusing on those niches and providing tailored solutions. Once built, these tools could themselves become acquisition targets (as Stripe acquired a stablecoin startup for $1B ), indicating strong ROI potential for successful products.

In summary, by targeting integration, compliance, and usability gaps, developers can create the picks-and-shovels needed for businesses to comfortably use stablecoins. These opportunities not only promise financial return for the builders but also advance the overall ecosystem, making stablecoins more practical and trusted in day-to-day commerce.

Conclusion

Stablecoins have demonstrated immense promise by offering fast, low-cost, global transactions – a compelling upgrade to traditional payment rails mired in fees and delays. For businesses, the allure is straightforward: near-instant cross-border payments, reduced transaction costs (often by 50-80% ), and access to a digital dollar economy that operates 24/7. These benefits directly address long-standing pain points in areas like B2B payments, international trade, and small business transactions. Yet, as we’ve explored, widespread adoption by businesses has been held back by equally real challenges. Regulatory uncertainty, integration hurdles, liquidity and FX issues, user experience gaps, and the lack of enterprise-ready tooling form a wall between the promise of stablecoins and the reality on the ground.

Crucially, within these challenges lie clear opportunities. Many of the barriers are fixable frictions – the kind that innovative tools and services can overcome. Underserved market segments such as emerging-market SMEs, global freelancers, and small retailers are hungry for better payment solutions, but they need the bridges built for them to cross into the stablecoin world. Developers and entrepreneurs who focus on these pain points can become the bridge-builders. Whether it’s an API that **plugs stablecoins into existing finance software **, or an app that simplifies KYC for crypto transactions, or a platform that lets a coffee shop take digital dollars for lattes, each solution chips away at the barriers. Over time, these incremental improvements can lower the threshold enough that even non-crypto-savvy businesses step through and give stablecoins a try.

It’s also worth noting that stablecoins do not exist in a vacuum; they are part of a broader financial stack. To truly unlock their value, the surrounding services (compliance, security, dispute resolution, etc.) must evolve in parallel. As one analyst pointed out, the cost savings of stablecoins come from cutting out middlemen, but businesses still need someone or something to perform the “jobs” those middlemen did – fraud prevention, coordination, regulatory compliance . This is where new service providers can step in: for every function a bank or card network used to handle, there’s an opportunity for a crypto-native solution to handle it more efficiently or in a more user-driven way. The maturation of the stablecoin ecosystem will see the emergence of these complementary services, many likely built by agile startups.

From a strategic perspective, focusing on low-hanging fruit doesn’t just mean quick wins – it means laying the groundwork for bigger shifts. Solving practical issues for niche markets can be the wedge that brings stablecoin usage into the mainstream. For example, a robust stablecoin invoicing system for freelancers might later expand to SMB payroll, then to enterprise vendor payments. Each step builds confidence and track record. By emphasizing actionable improvements and ROI, developers can convince businesses to take that first step. Early success stories (like companies that cut remittance costs by 80% , or a retailer that gained new customers via stablecoin payments) will in turn inspire others to explore these tools.

In conclusion, the path to stablecoin adoption in business is not absent of obstacles, but none of the obstacles are insurmountable. The pain points are well-defined; many are already being tackled in pieces by forward-thinking companies and projects. What’s needed now is a concerted effort to address these gaps with practical, user-friendly solutions. By targeting underserved segments and their specific needs, and by developing the “glue” that connects stablecoins with everyday business operations, developers can unlock significant value – for themselves, for businesses, and for the broader economy. The year 2025 and beyond is poised to be a turning point where stablecoins move from the periphery of finance into its core workflows . Those who build the picks and shovels for this digital gold rush stand to reap substantial rewards, while also advancing financial innovation. In other words, solving these pain points isn’t just good deeds – it’s good business.

Sources:

  • PYMNTS – Stablecoins Keep Racking Up Milestones, but Can They Crack B2B Payments?
  • PYMNTS – Interview with Stable Sea CEO on cross-border payment pain points
  • Orbital (Alexandra Lartey) – Stablecoins: Solving Real-World Challenges in B2B Payments (use cases and adoption hurdles)
  • a16z (Sam Broner) – How stablecoins will eat payments (stablecoin benefits for SMEs, payment cost analysis)
  • Banking Dive – Stablecoins face obstacles to widespread adoption (Money20/20 panel insights)
  • Fintech Takes (Alex Johnson) – The Trouble With Stablecoins (critical analysis of stablecoin payments vs. card networks)
  • Deloitte – 2025 – The year of payment stablecoins (risk, accounting, and tax considerations)
  • Transfi – Efficient Stablecoin Payout Solutions: A Comprehensive Guide (stablecoin payout mechanics and benefits)
  • Orbital – example of cost savings via stablecoins in B2B FX processes and e-commerce plugins boosting sales
  • a16z – stablecoin vs traditional remittance cost comparison and Stripe stablecoin fee initiative .