In general, there are two paths to innovation. One is to build entirely new systems that disrupt existing frameworks, and the other is to upgrade legacy infrastructures. As the financial industry continues to embrace digital assets, stablecoins are emerging as a powerful alternative solution, that will potentially revolutionize payments and disrupt existing payment systems.
What is a stablecoin
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, often a fiat currency like the US dollar or a commodity like gold. Unlike volatile cryptocurrencies such as Bitcoin, stablecoins provide the benefits of digital currencies—speed, transparency, and accessibility—while minimizing price fluctuations. This makes them an ideal candidate for use in everyday transactions, cross-border payments, and as a settlement layer between traditional financial systems and blockchain technologies.
Paypal is leading the stablecoin move
Besides cryptonative players such as Tether and USDC, Paypal is one of the first to embrace stablecoin in traditional finance world. PayPal entered the stablecoin arena in 2023, rolling out a dollar-backed stablecoin PYUSD to expand its crypto services. Last week, it takes a step further. Merchants can now not only accept stablecoin payments but also buy, sell, and hold cryptocurrencies within PayPal’s ecosystem. This move shows how established payment platforms are adopting stablecoins to modernize their services and offer greater flexibility to consumers and businesses alike.
BBVA to launch its first stablecoin via Visa tokenization platform
Just yesterday, BBVA, one of Europe’s leading banks, has taken a significant step by announcing its first stablecoin in 2025 through Visa’s tokenization platform. By leveraging Visa’s secure infrastructure, BBVA is upgrading its traditional payment systems with cutting-edge blockchain technology, providing faster, safer, and more efficient cross-border payments.
Will stablecoin become the new settlement layer of payment?
As stablecoins gain traction in both traditional and decentralized financial systems, the question arises: Will they become the new global settlement layer for payments? Stablecoins have the potential to streamline settlement processes, reducing transaction times and costs, and making cross-border payments more efficient. However, regulatory challenges and the ongoing evolution of both legacy systems and decentralized finance (DeFi) will determine whether stablecoins truly become the backbone of the future payment ecosystem.