WINTER ISSUE 2025
THE OFFSHORE DOLLAR STORY YOU HAVEN’T HEARD To understand stablecoins on a global scale, consider the Eurodollar market: US dollars held outside of the United States. This market became a foundation for global finance, with its price historically set by LIBOR (the London Interbank Offered Rate). The 2008 financial crisis exposed massive collusion in LIBOR, leading to its complete phase-out by 2023 and replacement with SOFR (Secured Overnight Financing Rate). This regulatory pivot effectively brought dollar pricing and liquidity management back onshore to the US, causing offshore dollar liquidity to evaporate just when global demand was surging. That is the macro backdrop against which stablecoins found their productmarket fit. With the stability of the US dollar and the versatility of blockchain transactions, stablecoins function as programmable versions of Eurodollars that do not require banks as intermediaries. This allows them to instantly meet the voracious global demand for dollars.
WHY BUSINESSES ARE TURNING TO STABLECOIN PAYMENTS With landmark clarity from the U.S. GENIUS Act and European MiCA regulation paving the way for adoption, the race is on to optimise global payment flows. The numbers tell the story: the supply of stablecoins has grown from $2 billion to over $200 billion in circulation2 in just the last six years. Even excluding trading volumes generated by crypto traders, stablecoin payment volumes are quickly ap-
Stablecoin Supply by Issuer, in Billions of US Dollars Billions of US dollars by
for
Tether (USDT) and
160 140 120 100 80 60 40 20 0 2019
2021
3
2023
2025 Source: Visa Onchain Analytics Dashboard (April 2025)
proaching those of major card networks like Visa and Mastercard. Projections indicate that the market will continue to grow rapidly, with stablecoin supply potentially exceeding US$3 trillion by 20303. Major global payment processors, including Rapyd, have launched solutions, and both the US and Europe have passed legislation facilitating adoption. This is not experimentation; it is a rapid, private-sector-led transformation. Three forces are driving this use: supply-side strategic interests, growing demand from emerging markets, and an opportunity gap in traditional banking. • Emerging Markets Need Stable Currency: Picture a Colombian business invoicing international clients. They prefer payment in US dollars to hedge against currency volatility. While opening a US dollar bank account is complex, creating a stablecoin wallet is fast and straightforward. Businesses across
Stablecoins aren’t just another cryptocurrency trend. They are the modern evolution of an ageing financial system that’s finally getting the upgrade it needs 2
Circle (USDC)
https://www.bain.com/insights/from-niche-to-utility-stablecoins-move-toward-the-financialmainstream/ https://www.statestreet.com/us/en/insights/stablecoin-moment
emerging markets use stablecoins to invoice in stable currency, store value protected from local devaluation, and receive payments instantly, 24/7, 365 days a year. • The Opportunity Gap: Non-banks are filling gaps in high opportunity, regulated industries, such as forex, regulated gambling, and crypto exchanges, that are often underserved by traditional banks due to perceived reputational risk. Stablecoin solutions provide a compliant, operational lifeline to these legitimate sectors. WHAT DO STABLECOINS MEAN FOR YOUR BUSINESS? The infrastructure is maturing quickly, with modern blockchains and compliance tools meeting stringent regulatory requirements. Stablecoins deserve your attention now if you fall into any of these categories: • Global Merchants: Dealing with emerging markets where traditional banking is slow and restrictive. • High-Opportunity Industries: Regulated sectors like forex, crypto exchanges, and digital goods. • Businesses with Remote Workers: Paying international contractors and employees instantly without wire transfer delays. • Companies with Volatile Supply Chains: Needing to move money quickly between regions to optimise cash flow and seize opportunities. Stablecoins are reshaping global payments, but you don’t need to navigate this transformation alone. Rapyd has the infrastructure and expertise to support your growth in any market. 19