Stablecoins emerge as tool for corporate treasuries

Research from Bibby Financial Services found internationally trading small and medium-sized enterprises lost an average of £71,600 over the past 12 months due to currency volatility. The study also reported 69% of those SMEs experienced increased pressure on cash flow. Treasury teams are turning to stablecoins to shorten settlement times and improve visibility across multi-currency operations.

Stablecoins are digital tokens designed to hold a stable value relative to a fiat currency. Treasuries using them report near-real-time settlement, lower liquidity friction and clearer tracking of funds across jurisdictions. Global stablecoin transaction volumes have risen and the tokens are being used alongside established payment rails such as SWIFT, SEPA and local ACH systems.

Digital asset rails can combine the payment instruction and final settlement into a single transaction. By contrast, correspondent banking typically moves value through several intermediaries and settlement windows that can keep cash tied up for days. Treasury teams cite those operational differences when choosing between digital and traditional payment routes.

Regulatory approaches vary by country. Brazil has recently restricted stablecoin use for cross-border payments, while other jurisdictions are developing regulatory frameworks for digital asset settlement. In response, many companies are adopting hybrid settlement models that pair fiat currencies such as the US dollar, euro and pound with regulated digital assets to comply where rules are stricter and use digital rails where permitted.

Stablecoin usage is concentrated in parts of Africa, the Middle East and Latin America when adjusted for GDP. Treasury groups are redesigning payment infrastructures to switch between stablecoin networks and bank rails depending on recipient, jurisdiction and local rules. That work includes managing multiple banks, vendors, wallets and payment networks, and seeking unified infrastructure that preserves visibility and allows payments to be rerouted when one channel is restricted.

Firms continue to use traditional banks alongside regulated digital assets. Many treasuries now operate both types of settlement rails within hybrid models to handle cross-border payments and manage liquidity under changing regulatory and market conditions.