Stablecoins are rapidly gaining traction in the global financial ecosystem, offering the price stability of fiat currencies while harnessing the innovation of blockchain. Pegged to real-world assets like the US Dollar, Gold or other commodities, these digital tokens are emerging as efficient, borderless instruments for payments, settlements and value exchange. With the US regulations, such as the STABLE Act and the GENIUS Act (the Guiding and Establishing National Innovation for U.S. Stablecoins Act), beginning to take shape, stablecoins are no longer fringe instruments. They are becoming central to the next wave of financial modernization.

Yet, this evolution brings dual imperatives: Innovation and Integrity. As stablecoins re-shape payment networks and unlock new forms of liquidity, financial institutions and FinTechs must also confront their inherent risks, from governance gaps to financial crime vulnerabilities.

Why Stablecoins Are Gaining Momentum

The appeal of stablecoins lies in their unique ability to bridge traditional finance and digital innovation. Key benefits include:

These features make stablecoins increasingly relevant not only to consumers and crypto-native platforms but also to central banks, asset managers and retail banks exploring next-generation payment rails.

A Closer Look: Four Types of Stablecoins

Each type presents a different risk profile, from volatility exposure to governance complexity, requiring bespoke risk frameworks.

On the Brink of Mainstream

As of March 2025, the global stablecoin market was valued at USD 234 Billion¹, with the likelihood of the market reaching USD 3.7 Trillion by 2030. USDT (Tether) and USDC (USD Coin) alone account for over 90 percent of this, with daily USDT transactions surpassing USD 20 Billion.²

This growth signals a tipping point: Stablecoins are becoming viable competitors to legacy payment systems, particularly for cross-border and digital-first use cases. Their programmable nature also aligns with enterprise automation strategies across treasury, trade finance and digital commerce.

Risks on the Rise: Governance, Regulation & Financial Crime

Despite their utility, stablecoins introduce unique challenges:

Financial Crime Risks: A New Battleground

As with all cryptoassets, stablecoins present a fertile ground for illicit financial activity:

• Money Laundering & Terrorist Financing

  Anonymity, cross-border agility and peer-to-peer protocols enable bad actors to obscure fund origins

  • Common Laundering Techniques

    Use of Mixers and Tumblers, Unhosted Wallets, Cold Wallets, DeFi Protocols and Cross-chain Swaps

• Fraud & Scams

  From Pig Butchering to Rug Pulls, the volume of illicit on-chain activity in 2024 surpassed USD 51 Billion⁴

• DeFi Exploits

  Unregulated DeFi platforms aid laundering, sanction evasion and ransomware payment facilitation

The complexity of these crimes demands more than traditional monitoring. It requires real-time blockchain intelligence and domain-specific investigative expertise.

How US Banks Should Prepare for Stablecoin Adoption

Many US banks still rely on legacy infrastructure. As FinTechs and crypto-native firms drive customer expectations, banks must evolve or risk disintermediation. Emerging regulations now define pathways for banks to become Permitted Payment Stablecoin Issuers (PPSIs) or Trusted Custodians.

Strategic response options include:

Launch proprietary stablecoins to enhance control and trust (e.g., JPM Coin).

Collaborate with reputable issuers via consortium models to offer scale and compliance.

Integrate blockchain and DeFi infrastructure into payment operations.

Embed crypto-specific Anti-Money Laundering (AML) programs,addressing L1, L2 and L3 risks across customer and transaction lifecycles.

Adopt third-party analytics platforms (e.g., Elliptic, TRM, Chainalysis) for transaction screening and cryptoasset tracing.

Technology Considerations for Trusted Integration

Banks must build or co-create ecosystems that enable:

The shift isn’t just about technology adoption. It’s about embedding digital trust with customers, shareholders and stakeholders at the core of financial innovation.

Enabling Secure Adoption Through Domain-led, Technology-powered Partnerships

To navigate the complexities of stablecoin integration, particularly in high-risk areas such as financial crime compliance and asset governance, organizations need partners that combine domain excellence with deep analytical and investigative capabilities. This includes experience across onboarding, due diligence, sanctions screening, multi-tier transaction monitoring, cryptoasset tracing, SAR filing and reporting.

Leaders in this space are already developing specialized cryptoasset compliance frameworks, equipping teams with the use of blockchain intelligence tools and embedding AI-enabled investigation workflows. Some have built these capabilities even ahead of regulatory clarity, demonstrating the value of foresight and agility in a rapidly evolving ecosystem.

The Road Ahead

Stablecoins are poised to re-define how value moves across the digital economy. However, their success hinges on the ability of institutions to manage complexity with clarity – and risk with resilience.

For banks, stablecoin issuers, custodians and blockchain-built FinTechs, now is the time to invest in the right partnerships, frameworks and tools. Because in the stablecoin era, trust will be the most valuable currency.

Discover how WNS can help you integrate stablecoins securely, mitigate financial crime risks and future-proof your digital finance strategy. Explore our capabilities | Connect with our experts

References

1. Digital Dollar Report: Stablecoin Market Set to Soar, Reach Up to US$3.7 Trillion by 2030 | Fintech News Network

2. USD Coin and USDT Stablecoins Occupy 90% Market Share | Yahoo Finance

3. Cryptocurrency User Loses 2.6 Million USDT in Zero-Transfer Phishing Attack | AInvest

4. Estimated $51bn Lost to Crypto Crime in 2024 | Yahoo Finance