Crypto for Advisors: The Growth of Stablecoins

Stablecoin adoption surges post-GENIUS Act. Discover how cost savings, liquidity, and regulatory clarity are driving their growth in global finance.

Oct 23, 2025, 3:00 p.m.

In today’s "Crypto for Advisors" newsletter, Parshant K. Kher from EY-Parthenon breaks down findings from their recent stablecoin survey, highlighting the optimism in the industry since the GENIUS Act’s launch.

Then, in "Ask an Expert", Kieran Mitha answers questions about what stablecoins are, use cases and regulations.

Thank you to our sponsor of this week's newsletter, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.

– Sarah Morton

Full Speed Ahead for Stablecoin Adoption

With the GENIUS Act in the rearview mirror, research shows that cost savings and liquidity will drive the next leg of stablecoin usage.

Long a quiet cornerstone of the digital asset economy, stablecoins are now commanding mainstream headlines as adoption accelerates among financial institutions. Stablecoins are projected to account for 5% to 10% of global transactions by 2030 — representing an estimated $2.1 trillion to $4.2 trillion in value — underscoring their growing role in global commerce.

In a financial landscape built on trust, float and multiday clearing cycles, the promise of instant settlement and reduced transaction costs makes stablecoins a compelling solution for payments. Among the most promising use cases are B2B cross-border transactions, where early adoption is gaining traction — especially as companies navigate rising costs driven by trade and tariff uncertainties.

Buoyed further by the passage of the GENIUS Act, stablecoin adoption is surging with the market cap growing by 66% to approximately. $300 billion over the last 12 months. To better understand market sentiment, the EY-Parthenon team surveyed financial institutions and large corporations on their awareness, adoption and future plans for stablecoins. The findings confirm that regulatory clarity from the GENIUS Act is reinforcing an already solid foundation of interest and perceived business value. Notably, even before the legislation was fully enacted, 100% of respondents were familiar with stablecoins — and 65% anticipated growing interest over the next six to 12 months.

Cross-border payments drive cost savings

Cross-border payments emerged as the leading use case among corporate stablecoin users — and the cost savings are hard to ignore. In fact, 41% of respondents reported saving more than 10%, compared with traditional payment methods. The appeal of stablecoins extended across both inbound and outbound transactions, driven by a range of benefits. While lower transaction costs topped the list, speed and improved liquidity rounded out the top three motivators.

Despite growing enthusiasm, regulatory uncertainty remains a key hurdle. During the Senate debate over the GENIUS Act just ahead of its passage, 73% of respondents flagged regulatory clarity as a primary concern. With legislation now in place, we expect confidence to grow and innovation to accelerate.

Banks chart their course for participation

While just 15% of financial institutions currently offer stablecoin services to clients, interest is rapidly growing — 57% are actively exploring opportunities, with client demand cited as the primary driver by 53% of them. The most common areas of focus include providing on-/off-ramp services and digital wallet infrastructure, with only 16% of firms (and 26% of banks) considering issuing their own fiat-backed stablecoin.

Most financial institutions are planning a hybrid approach to building out their stablecoin capabilities. Over half (53%) expect to combine in-house infrastructure with vendor partnerships, and 46% anticipate relying on third-party wallet or custody providers to deliver services.

The motivations for adoption closely mirror those of corporate users. Faster settlement times and cost reduction were each cited by 65% of respondents, while 59% saw stablecoins as a path to new revenue streams and 52% viewed them as a way to differentiate their payment strategies in an increasingly competitive landscape.

Scale and broader impact

Financial institutions are increasingly bullish on their long-term potential, especially under the GENIUS Act, which mandates that stablecoins be backed by real-world assets. U.S. Treasuries are expected to play a central role in this framework, creating a new demand channel for U.S. debt and potentially reinforcing the dollar’s dominance as the global reserve currency through Treasury-backed stablecoins.

Conclusion

With the GENIUS Act providing a framework and path toward long-awaited regulatory clarity, the outlook for stablecoin adoption is strong. As organizations recognize the cost savings, speed and liquidity benefits of stablecoins, their use in cross-border transactions is likely to expand significantly, unlocking broader innovation across the digital asset ecosystem. Financial institutions and their corporate clients alike stand to gain, both directly and indirectly, from the continued evolution of stablecoin infrastructure and services.

- Prashant K. Kher senior director, EY-Parthenon’s Strategy Group

Ask an Expert

Q. What are stablecoins, and how do they stay pegged to traditional currencies?

Stablecoins are digital tokens designed to hold steady value, which are usually tied to something familiar like the U.S. dollar. They aim to combine crypto’s speed and accessibility with the stability of real-world money.

There are a few kinds of stablecoins: some are backed by actual dollars and short-term U.S. Treasuries (like USDC or Tether), others are backed by crypto reserves, and a few rely purely on algorithms — though those have struggled. As of mid-2025, stablecoins represent over $250 billion in market value, and Tether alone makes up about 60% of that share (The Block, 2025).

In short: stablecoins make it possible to use “digital dollars” on blockchain networks without worrying about the wild price swings of regular cryptocurrencies. 

Q. Why are stablecoins becoming such a big deal for finance and trade?

Stablecoins are changing how money moves. They let people and businesses send U.S. dollar-equivalent value around the world in seconds without the need for banks, wire fees, or waiting days for settlement.

They’re now used to trade crypto, settle cross-border transactions, and even move funds between companies and payment systems.

In 2024, stablecoins were used in transactions worth over $27 trillion, surpassing PayPal’s annual volume (World Economic Forum, 2025). For emerging markets, they also provide access to a more stable currency when local money loses value.

In short, stablecoins are becoming the connective tissue between traditional finance and the blockchain economy — fast, borderless, and easy to use. 

Q. What’s the biggest risk for stablecoins, and how are regulators responding?

The main risk for stablecoins is trust and whether each token is truly backed by high-quality, liquid assets that can be redeemed 1:1 for real dollars. When reserves aren’t fully transparent, even small doubts can cause panic and mass withdrawals.

Regulators are now stepping in. The Financial Stability Board (FSB) recently warned of “significant gaps” in global crypto rules, especially around reserve transparency and cross-border risk (Reuters, 2025). In response, countries are introducing stricter frameworks: the U.S. is proposing licenses and fully backed reserves; the U.K.’s central bank will only lift its stablecoin cap when confident they pose no threat; and the EU is pushing to close regulatory loopholes.

In short, regulators are tightening oversight to ensure stablecoins are as safe and reliable as traditional money — without losing the innovation that makes them so useful.

- Kieran Mitha, marketing coordinator, MeetAmi Innovations Inc.,

Keep Reading

• U.S. Federal Reserve Governor acknowledged that blockchain and crypto are part of the financial system.
• Payment giant Wise is looking for a stablecoin leader to join the firm.
• U.S. Senator Cynthia Lummis says progress is being made on cryptocurrency legislation in Washington.

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