Stablecoins are crypto’s killer app—but no one can agree on who will use them

Stablecoins have emerged as a promising application within the crypto space, despite the ongoing challenges. Investors, startups, and even critics have recognized the potential of stablecoins to streamline financial transactions, particularly following the implementation of the GENIUS Act in 2025, which provided a clearer regulatory framework.

However, the uncertainty surrounding their adoption remains a significant hurdle. Speaking with Dan Kim, VP of Product at Airwallex, a prominent fintech company, it became evident that merchants have struggled to see the value in adopting stablecoins due to concerns over chargeback management and the added complexity of incorporating another payment layer.

While stablecoins have proven useful within the realm of crypto trading, their utility in everyday transactions has not been apparent. For instance, alternatives like Venmo and Zelle offer convenience in sending money to friends and local businesses. Moreover, the success of stablecoins in developing countries, such as Tether's $183 billion business catering to consumers' need for a reliable U.S. dollar holding option, contrasts with the North American market where debit cards are more popular.

The cross-border business payments use case seems promising, but the implementation process is complicated by regulatory restrictions on vendors and the necessity of transacting in the native currency of the respective market. Airwallex's CEO, Jack Zhang, initially harbored skepticism toward stablecoins, believing that his company's existing business model, which centers around acquiring financial licenses and holding multi-currency reserves, was sufficient.

However, in 2024, Airwallex pivoted and developed a service to help customers convert U.S. stablecoins into local currencies. The company has also invested in Metal, a blockchain startup designed to comply with local financial regulations. As agentic commerce gains traction, with bots assisting in online shopping, stablecoins may play a role in the future.

Nevertheless, Airwallex faces fierce competition from established players like Rain, MoonPay, and others, as well as emerging technologies. In conclusion, it remains to be seen how stablecoins will evolve and integrate into our financial systems.