Stablecoin usage is on the rise among corporate entities and financial institutions, prompted by enhanced regulatory frameworks and potential cost reductions in global money transfers, according to a recent survey conducted by EY-Parthenon.
The survey, which engaged 350 executives in June following the Senate’s passage of the GENIUS Act, found that 13% of respondents already utilize stablecoins, predominantly for cross-border transactions. Notably, a significant 54% of firms that do not currently use stablecoins indicated intentions to adopt these digital currencies within the upcoming six to twelve months.
The GENIUS Act, enacted in July, is seen as a critical milestone in providing definitive rules for U.S. dollar-backed stablecoins, encompassing aspects such as reserve requirements and processes for issuer approval. This legislative move has considerably diminished uncertainties regarding liquidity, tax implications, and custodial services, according to insights from survey participants.
Cost efficiency emerges as another compelling reason behind the growing adoption of stablecoins. Among current users, 41% reported achieving at least a 10% reduction in costs associated with international transactions facilitated by stablecoins. This is a strong incentive for firms looking to optimize their financial operations.
Executives are optimistic about the role of stablecoins in the future of global finance, estimating that by 2030, stablecoins could account for between 5% and 10% of all cross-border payment activity. This projection translates to a significant market value estimated at between $2.1 trillion and $4.2 trillion.
However, challenges remain on the path to wider adoption. Currently, only 8% of surveyed businesses state they accept stablecoin payments, suggesting that many firms will likely rely on partnerships with banking and fintech providers to facilitate this integration.
The findings of this survey highlight not only the positive outlook for stablecoin adoption but also the need for further developments in infrastructure to support seamless user experiences. As regulatory landscapes evolve and businesses consider integrating stablecoins, it will be crucial for stakeholders to address these existing hurdles.
The ongoing dialogue around stablecoins, particularly in light of the recent U.S. legislative advancements, demonstrates a keen interest among executives in incorporating these digital assets as a staple within their financial strategies. As we progress, the evolution of stablecoins could significantly reshape the landscape of international finance.
