Stablecoins are redefining global finance

For years, the cryptocurrency debate has centred on price. Every discussion returned to charts, volatility, and market speculation. The fixation on value swings has distracted from a much more important story.

The future of digital finance is not about price movement. It is about infrastructure.

Regulated stablecoins are emerging as the foundation of a new global financial system. They combine the trust of established currencies with the speed and efficiency of blockchain technology, and they are moving from the fringes into the heart of the monetary system.

Across Europe, the UK, and the United States, regulators are finalising frameworks that bring stablecoins firmly within the financial mainstream. These rules represent a turning point. They legitimise a technology once treated as an outsider and open the path to large-scale adoption.

Stablecoins were once seen as tools for traders to escape volatility. They are now becoming the rails of the next generation of payment systems. This evolution marks a structural shift in how money circulates and how economies connect.

Ethereum’s creation laid the foundation. Its designers envisioned a decentralised computer that could execute transactions automatically and transparently. From that vision grew an ecosystem now managing hundreds of billions of dollars. For years, it operated separately from traditional finance, using only native tokens.

Stablecoins changed that. By linking blockchain tokens to real-world currencies, they enabled a bridge between decentralised and traditional systems. Anyone with an internet connection could access dollar-based assets directly, bypassing banks and intermediaries.

The growth has been extraordinary. Leading issuers have become some of the most profitable businesses in existence, achieving this in an uncertain regulatory climate. The period of ambiguity is now ending, replaced by clearer and more consistent oversight.

Europe’s MiCA regulation and the US GENIUS Act establish comprehensive standards for issuance and supervision. The shift in tone is remarkable. Policymakers once viewed stablecoins as speculative risks. Now they are recognised as strategic financial tools.

In Washington, legislators see stablecoins as a way to strengthen the dollar’s influence. Because most are backed by US Treasuries, every token issued increases demand for government debt. This supports both the dollar’s global position and America’s fiscal strength.

Such alignment between public policy and private innovation is rare. Stablecoins are reinforcing the dollar’s role while offering new efficiencies for global markets.

Regulation, however, comes with complications. Under MiCA, issuers and intermediaries cannot pay interest to holders, ensuring all returns from the reserves go to the issuer. The US framework takes a more flexible approach. While issuers themselves cannot pay interest, affiliated platforms can. This distinction is already shaping competition in the market.

Yield offerings on regulated dollar tokens have drawn the attention of banks, which are lobbying for tighter boundaries. They see the risk of losing traditional advantages as the digital finance model expands.

Meanwhile, established financial institutions are entering the sector at speed. Banks, asset managers, and payment companies are developing their own blockchain systems. Many are opting for private networks that prioritise compliance and control. These systems are efficient but centralised.

Public blockchains provide a different model. They are open, transparent, and accessible to anyone. Both approaches will compete for adoption in the years ahead, defining how much openness the future financial system allows.

Central banks remain part of the contest. They continue to explore digital currencies, but progress has been slow. Stablecoins are already operational, regulated, and used globally. As this gap widens, the private sector gains the advantage. Governments have built the guardrails but have yet to lead with their own innovation.

The result is likely to be a hybrid system. Central banks will continue issuing base money, while regulated private issuers provide programmable layers for settlement and payments.

The model mirrors the evolution of the internet, where closed systems gave way to open networks.

The benefits are substantial. Stablecoins enable instant global transfers, automated financial contracts, and real-time treasury management. They streamline cross-border trade, corporate finance, and remittances.

Beyond payments, tokenisation opens entirely new frontiers. Financial logic can now be encoded in software, allowing self-executing contracts and decentralised risk management. Artificial intelligence systems can deploy capital within preset parameters. These innovations are already in practice, not distant speculation.

The speculative era defined the first decade of cryptocurrency. The next will be about structure, regulation, and scale.

Stablecoins sit at the centre of this new phase. They are transforming digital finance from an experiment into an operational part of the global economy. What began on the fringes of technology is now forming the foundation of modern money.

The transition is underway. The challenge for established financial institutions isn’t whether to engage, but how fast they can adjust to a system already being rebuilt around them.

Nigel Green is deVere CEO and Founder