How to Get Started with Stablecoins? ??
Stevan Bajic
Entrepreneur | Leader | Advisor | Founder of Manigo, Fintech Infrastructure Platform | Fintech Guild Member | ex Credit Fund Manager
#Stablecoins?are quite the hype these days, and not without reason. In 2024, Stablecoins processed approximately $27.6 trillion in transactions - outpacing the combined transfer volume of Visa and Mastercard by 7.68%. With year-over-year growth of 17% and Stablecoins representing more than two-thirds of crypto transactions globally, it’s clear they are reshaping cross-border payments and financial infrastructure.
This surge in transaction volume has sparked widespread interest from businesses looking to leverage Stablecoins for their efficiency, speed, and cost benefits. Whether you’re a financial services company or a business outside the financial sector, this guide will help you explore your options and get moving with Stablecoins - without getting lost in the crypto jargon.
Let’s dive in! ??
For Financial Services Companies: The Direct Route ??
If you’re a financial services company (think banks, payment processors, or licensed #Fintech firms), you’re already ahead of the game. Here’s how to take advantage of Stablecoins directly:
1. Understand the Regulatory Landscape:
? In the EU, Stablecoins are governed by the Markets in Crypto-Assets Regulation (MiCA). MiCA ensures that Stablecoin issuers and custodians operate under strict guidelines to protect users and maintain financial stability. Ensure you hold the necessary licences to operate legally and securely with Stablecoins, covering activities like issuing, custody, or exchange.
? In the UK, post-Brexit, the Financial Conduct Authority (FCA) is creating its own frameworks, which currently align with EU rules but may diverge in the future.
? EU Tip: Familiarise yourself with MiCA’s classification of Stablecoins (e-money tokens or asset-referenced tokens) and licensing requirements.
? UK Tip: Keep an eye on evolving UK regulations and sandbox initiatives.
2. Choose the Right Stablecoins:
? Start with well-established, widely adopted Stablecoins such as #USDC by Circle or #USDT by Tether.io , and consider expanding to others based on business needs.
3. Evaluate the Partnership Option:
? Even if you are a financial institution, partnering with specialised providers may help accelerate your time to market while avoiding operational complexity. Just like in the card issuing space - where a bank (or an EMI) partners with separate providers for BIN sponsorship and IBAN services - a similar approach can be taken with Stablecoins.
? Tip: Partnering can allow you to leverage existing infrastructure for on-ramping, off-ramping, and compliance while you focus on customer-facing services.
? Examples: Collaborate with crypto custody providers, blockchain gateways, or Stablecoin-as-a-service firms to minimise heavy lifting.
4. Ensure AML/KYC Compliance:
? As a financial services pro, you will know that Stablecoins are still subject to anti-money laundering and know-your-customer regulations, so you’ll need robust procedures in place.
For Non-Financial Companies: The Partnership Approach ???
If you’re not a financial services company (think retailers, SaaS providers, or logistics companies), don’t worry - you can still leverage Stablecoins by partnering with those who handle the regulatory complexity.
1. Find the Right Partner:
? Work with licensed crypto infrastructure providers or digital asset platforms that offer end-to-end Stablecoin solutions, including issuing, custody, and compliance support.
? Examples: Stablecoin-as-a-service providers, blockchain payment platforms, or crypto custody solutions.
? Tip: Unlicensed fintechs can also take advantage of partnerships by being sponsored under a licence umbrella, where a licensed provider assumes the responsibility for compliance and regulated activities. For example, your partner might hold the necessary licences for on-ramping and off-ramping, minimising the regulatory burden on you. In return, you’ll need to comply with their operational requirements and risk management frameworks.
2. Leverage Compliance as a Service:
? Many partners offer compliance-as-a-service, managing AML, KYC, and reporting obligations so you don’t have to.
? Tip: Don’t try to reinvent the wheel. Let your partner handle compliance while you focus on business growth.
3. Operational Benefits:
? With the right setup, you can enjoy faster cross-border payments, reduced transaction costs, and access to new markets - all without needing to maintain complex infrastructure.
Common Considerations for Both Approaches ??
Regardless of which route you take, some key considerations remain essential:
1. Stay Updated on Regulation:
? The regulatory landscape is evolving quickly, with the EU’s MiCA framework and the UK’s evolving rules.
2. Implement Cybersecurity Measures:
? Protect wallets and private keys to prevent hacks or theft.
3. Audit Your Systems Regularly:
? Ensure your processes comply with current financial regulations and best practices.
Practical Tips for Getting Started ??
1. Define Your Use Case:
? For Financial Companies (incl. sponsored fintechs): Consider remittance services, cross-border payments, on-chain lending, or offering digital wallets (potentially with a card connected to it too).
? For Non-Financial Companies: Focus on global supplier payments, cross-border payroll, e-commerce Stablecoin payments, or customer refunds for international transactions.
2. Research Your Partners Well:
Partnering with vendors in fintech can be rewarding but also challenging. Whether you’re integrating tech-only or consuming a compliance umbrella, different risks exist:
? Tech Vendors: Fine-tuning and troubleshooting during integration.
? Compliance Umbrella Providers: Added friction due to legal and operational alignment.
Quick Tips:
? For tech-only: Test the APIs thoroughly before committing. Ask for live use cases.
? For compliance umbrella: Request a structured onboarding plan and speak to existing clients.
3. Start Small and Iterate Quickly:
? Test Stablecoin payments or integrations through pilot programmes involving a subset of transactions or customers. Collect their feedback and refine the process, as both the regulatory and technological environment can change rapidly.
Conclusion ??
Stablecoins are more than just a trend - they’re becoming part of the new financial stack. Whether you’re a financial institution or a non-financial business, starting with the right strategy and partnerships will position you to benefit from faster, more efficient payments and new market opportunities.
Roll up your sleeves, partner wisely, and embrace the future of payments. Just remember, Stablecoins don’t mean you’re going full-in on crypto - so be sure to clarify that before you give your CFO a heart attack! ??
Let’s get started!
Sources
1. Coinspaid Media Report 2024 – “Stablecoins processed approximately $27.6 trillion in transactions—outpacing the combined transfer volume of Visa and Mastercard by 7.68%.”
2. Coinbase Institutional Report 2024 – “With year-over-year growth of 17%.”
3. Chainalysis Crypto Adoption Report 2024 – “Stablecoins representing more than two-thirds of crypto transactions globally.”
#CryptoPayments #DigitalAssets #BankingInnovation #PaymentsInfrastructure #CrossBorderPayments