Build your stablecoin strategy
1. Executive summary
The financial world is undergoing a shift as seismic as the transition from analog to digital communications. At the heart of this shift are stablecoins. Stablecoins are creating a new base layer for financial services — one that’s global, real-time and accessible 24/7/365.
As stablecoin adoption grows, so does their utility. In just six years, stablecoin supply has surged from near zero to $250 billion, with forecasts of $2 trillion by 2028. Real-world stablecoin payments meanwhile have grown from half a trillion in 2020 to $7.4 trillion in the last 12 months (source: Visa).
Recent developments, such as Circle's IPO and the launch of stablecoins by major financial institutions like JPMorgan and Fiserv, underscore this momentum. At BVNK, we believe we're moving toward a world where a large majority of global money will exist in the form of stablecoins. In the next 10 years, stablecoins could reach 20% of the global cross-border payments market (from c.3% today).
This guide aims to help you capture your share of this opportunity. It bridges the gap between stablecoin ambition and implementation with:
- Use case selection:Implementation models with personalized API and UX demos, fund flows and case studies.
- Business case support:Market data and metrics to build your internal business case.
- Risk mitigation:Regulatory overviews and compliance approaches compared.
- Pricing intelligence:Provider fees and cost levers demystified.
- Delivery roadmap:From portal to API to embedded, deployment options explained
Every fintech and global enterprise needs a stablecoin strategy. We’re here to help you define yours.
2. Choose your use case
At BVNK, we support businesses and fintechs to send, receive, store and convert stablecoins. The most common use cases we serve are:
- Send:pay suppliers, partners, workers and customers globally in stablecoins, from a fiat balance. Or use a combination of stablecoins and fiat payment rails to accelerate cross-border payments to businesses and individuals.
- Receive:accept stablecoin payments from customers or partners, auto-convert to fiat.
- Store:hold funds in stablecoin-linked accounts with access to ACH, Fedwire, SEPA, Swift and all the major blockchains.
- Convert:move between currencies and on/off-ramp in one platform.
We serve these use cases via two delivery models:
- Managed payments:for businesses that want to enable stablecoin payments fast, without handling crypto. They leverage BVNK’s custody, liquidity and licensing via our Portal, API or Embedded offering.
- Self-managed payments:our Layer1 infrastructure-as-a-service for those seeking scale and control. Connect your own licences, custodian and liquidity partners – or use BVNK’s services where it fits.
To learn more about delivery models, go to: Select your delivery model
Read on to learn about popular use cases, see what market leaders are building and test drive solutions with our personalized API demos for Send payments, Receive payments and Launch stablecoin wallets.
Send stablecoins to businesses or individuals
In a nutshell:
Make payments to business partners, suppliers and merchants in stablecoins globally, or let workers, customers, sellers, creators and hosts get paid in stablecoins – from a fiat balance.
Most used by:
Payment Service Providers, Marketplaces, Trading, Gaming, Employer of Record, Payroll, Social and Tech platforms.
Adoption drivers:
- Settlement delays using traditional correspondent banking system.
- Demand to receive payment in stablecoins.
- Problems getting local banking access.
- Unpredictable or high FX fees via traditional correspondent banking system.
In a nutshell:
- Store funds in USD, EUR or GBP in named accounts on the BVNK platform (deposit via Swift, ACH, Fedwire, SEPA, Faster Payments).
- Request stablecoin payout via API or the BVNK portal.
- BVNK automatically converts to stablecoins on your behalf on payout (no need to hold crypto).
- Access full transaction reporting via the BVNK platform.
Example: Your customer withdraws in stablecoins.
- Add stablecoin withdrawal option in your platform, which sends API request to BVNK.
- Your user specifies the amount they want to withdraw and adds their wallet address. They’re shown the payment details including exchange rate and any fees. You can also set payout conditions via API (eg when a product is sold, when a guest’s stay is over) and trigger the payout yourself.
- BVNK automatically converts on payout (no need to hold crypto), updating your fiat wallet balance.
Challenge:
The global freelance workforce is thriving, growing 15x faster than traditional jobs, while the global gig economy market is expected to triple in size by 2032. And with the rise of global HR services and employer of record platforms like Deel – it’s easier than ever for businesses to hire and manage freelance talent globally.
Despite this, paying workers overseas remains a challenge. Today’s clunky cross-border payment systems can leave workers waiting days for money – only to lose out to unfavourable currency conversions at the last mile. Employers meanwhile are held back by tied-up capital and exposed to foreign exchange risk.
Solution:
In Spring 2024, Deel teamed up with BVNK to enable stablecoin payouts to global contractors. With BVNK's infrastructure, workers employed via Deel can fast-track wage payments with dollar-backed stablecoins like USDC, receiving them in minutes not days.
With BVNK's auto-conversion capabilities, there's no need for the Deel team to handle crypto. They simply fund their BVNK account in USD, EUR or GBP, and funds are converted automatically on payout. With this solution in place, Deel can ensure a seamless service for contractors, while remaining at the forefront of global payments innovation.
Settlement time reduced from 3-5 days to near instant
Strong adoption from contractors in Latin America and in markets with local currency fluctuations, with 125,000 successful payouts processed
10,000+ contractors in 100+ countries have opted to paid in stablecoins
Send stablecoins to businesses or individuals
In a nutshell:
Mixing stablecoin and local fiat payment rails to accelerate cross-border payments to businesses and individuals. For example to settle suppliers globally or facilitate remittance payments. Sometimes called 'the stablecoin sandwich'.
Most used by:
Remittance companies, Fintechs, PSPs, Trading platforms, Gaming platforms
Adoption drivers:
- Reducing settlement delays vs using only fiat payment rails.
- Avoiding high FX fees converting using traditional banking rails.
- Avoiding costly prefunding of accounts around the world (required to enable ’instant’ payments in the absence of instant cross-border settlement).
How it works:
- Layer1 (BVNK’s infrastructure-only product) orchestrates currency conversions and international transfers, making it simple to send money across borders.
- Layer1 provides the tech and smart routing.
- You manage the relationships with on-ramp, off-ramp and fiat payout providers.
- BVNK acts as a liquidity provider integrated with Layer1 for USD, EUR, GBP.
Example:
- Deposit:add USD to your BVNK account via Layer1.
- Request:send payout instruction via Layer1 for recipient in Mexico.
- Behind the scenes:Layer1 converts USD to stablecoins, then auto-routes via your local partners in Mexico
- Delivery:recipient receives Mexican pesos directly in their local bank account.
Demo: Send stablecoins
Create an instant personalized API & UX demo to see how stablecoin payouts could work in your platform.
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Challenge:
Despite this, paying workers overseas remains a challenge. Today’s clunky cross-border payment systems can leave workers waiting days for money – only to lose out to unfavourable currency conversions at the last mile. Employersmeanwhile are held back by tied-up capital and exposed to foreign exchange risk.
Challenge:
Despite this, paying workers overseas remains a challenge. Today’s clunky cross-border payment systems can leave workers waiting days for money – only to lose out to unfavourable currency conversions at the last mile. Employersmeanwhile are held back by tied-up capital and exposed to foreign exchange risk.
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EU
Crypto status: Regulated Key changes 2024-2025:
- EU's new regime, the Markets in Crypto Assets framework, is now fully in force
- Travel Rule for Crypto is also now live in the EU
What you need to know:
The Markets in Crypto Assets (MiCA) framework provides a ground for having regulated services in digital assets in Europe and formally recognizes regulated stablecoins based on a single fiat currency (like USDC). The regime affords additional protections to customers, bringing assurance that stablecoin reserves are fully audited, that funds in custody are kept safe, and that service providers are overseen by an EU supervisor. It also enables banks and regulated financial Institutions in the EU to provide regulated crypto services.
MiCA introduces a new, standardized licensing regime for crypto services, which ensures providers are held to similar standards as Europe's Electronic Money Institutions (EMIs) and other regulated financial institutions. For providers who already provide crypto asset services in the EU, like BVNK, there is a transitional period under MiCA which extends into 2025/2026.
Action point:
If you're adding crypto payments through a partner based in the EU, verify they are licensed as a provider under MiCA (or are in process of acquiring it, with a valid VASP registration) and they are compliant with the Travel Rule.
