Stablecoins are poised to revolutionize the financial landscape, with industry insiders predicting a pivotal shift over the next few years. Speaking at Paxos’ Global Dollar Network event in New York City, Sergio Mello, head of stablecoins at Anchorage Digital, underscored the urgency and inevitability of this transformation. “The next three years will be the fastest we will ever see in the development of digital assets,” he declared, hinting at the impending critical mass of institutional adoption expected within the next 12 to 24 months.
From Experiment to Infrastructure
Once relegated to the fringes of crypto speculation, stablecoins are now integrating into the mainstream, according to Raj Dhamodharan, EVP at Mastercard. These digital assets are becoming the “money movement layer” for diverse applications like cross-border remittances, B2B payments, and even retail transactions. Mastercard is already facilitating this shift, allowing users and merchants to transact in either fiat or stablecoins. “We’ve started doing that with cards. We’ve started doing that with remittances,” Dhamodharan revealed. This trend aligns with recent developments such as Visa and Baanx’s launch of USDC stablecoin payment cards, highlighting the growing role of stablecoins in everyday transactions.
Worldpay’s Ahmed Zifzaf also weighed in, noting the role of stablecoins in real-time treasury management. He emphasized their use in accelerating financial flows, with Worldpay leveraging blockchains such as Solana to bolster these efforts. This shift signifies stablecoins moving beyond mere speculative instruments to becoming critical components of modern financial infrastructure.
The Bankers’ Dilemma
Despite the momentum, not all financial institutions are eager to dive into the stablecoin pool. Luca Cosentino of Cross River highlighted the constraints faced by banks, including legacy technology, compliance risks, and cultural inertia. “Certain banks are not going to touch crypto,” he explained, while others focus on custody or money movement. Nonetheless, Cosentino is confident that a significant portion of banks will eventually embrace crypto.
Sunil Sachdev from Fiserv echoed this sentiment, describing a divide between cautious large banks and more aggressive smaller ones. He illustrated how small-town banks, with their community ties, could leverage stablecoins to differentiate themselves and attract low-cost deposits. “They’re looking at this as an opportunity to differentiate themselves,” Sachdev said, painting a picture of evolution from local institutions into nodes within global blockchain networks.
Better Than Fiat?
While many believe institutional adoption will lead the charge, Kraken’s Mark Greenberg offers a different perspective. He suggests that outside the U.S., where inflation and low yields plague economies, stablecoins could become a preferred store of value. “A global dollar is better than holding fiat,” Greenberg argued, predicting that stablecoins will permeate everyday financial activities—from savings to spending.
Mike Dudas of 6th Man Ventures and Sheraz Shere from the Solana Foundation both highlighted the critical role of app layers and infrastructure in driving consumer behavior and supporting stablecoin usage. The sentiment is clear: stablecoins are no longer just a crypto curiosity but a viable alternative to traditional money systems.
A Play to Bolster the U.S. Dollar’s Dominance
Beyond innovation and financial inclusion, stablecoins are seen by some policymakers as a strategic tool to enhance U.S. dollar dominance. Former CFTC chair Chris Giancarlo pointed out that stablecoin legislation is largely driven by the desire to increase demand for U.S. Treasuries. This digitization and distribution of the dollar at scale could reinforce its global role. In a similar vein, Ripple’s offer to acquire stablecoin issuer Circle underscores the strategic moves being made to capitalize on stablecoin technology.
Jonathan Levin, CEO of Chainalysis, highlighted the cautious entry of banks into the stablecoin arena, with a focus on asset stability and market risks. He emphasized the importance of data management in navigating this complex landscape, asserting that it will be “a data challenge that is going to be vital.”
The Years Ahead
As legislative efforts progress in Washington, the crypto community is eyeing a future where durable rules on reserves, on-ramps, and disclosures are established. Despite the political focus on Treasury demand, Giancarlo reiterated the broader implications for maintaining the dollar as the world’s reserve currency.
In conclusion, stablecoins are rapidly shedding their experimental status. Whether it’s small banks seeking relevance, corporations pursuing faster settlements, or regulators reacting to Treasury market pressures, the stablecoin ecosystem is evolving at breakneck speed. The journey to 2027 will likely define how global finance is structured for the next generation, raising questions about the sustainability of current trends and the role of stablecoins in shaping the future of money.
Source
This article is based on: Stablecoins Are About to Hit ‘Critical Mass’ While 2027 Seen as Pivotal Year
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
