RISING TIDES
Observations from the IMC Research Process

Stablecoins Are Eating Finance

Stablecoins have gone from a niche crypto tool to a $250B market, threatening a revolution in payments and traditional finance infrastructure.

• An inflection point. Stablecoins are blockchain-based tokens pegged to fiat currencies. What sets them apart isn’t volatility or speculation, but their capacity to serve as low-cost, programmable settlement rails. While many still categorize them as crypto, their use cases increasingly align with traditional financial infrastructure, particularly in payments and cross-border flows.
•  Regulatory tailwinds. Advances in US legislation are unlocking ‘legitimacy multipliers’, aimed at regulating and creating a clearer framework for private companies to issue digital currencies. This is not a green light, but it is a signal. Walmart, Amazon, Expedia, Meta and even Apple and Airbnb are getting onboard. Why? Because it could mean up to $14B in potential annual savings on payment fees. This isn’t about riding a hype cycle – it’s about disrupting incumbents, cutting costs, and building programmable commerce.
• Fintech pivoting for disruption. Emerging fintechs and infrastructure providers are moving fast. Circle’s USDC is expanding via B2B integrations; Robinhood is evolving into a yield and tokenized cash distribution channel post-Circle acquisition; Marqeta is powering stablecoin-based card issuance and embedded rails. VC-backed fintech decks mentioning “USDC,” “real-time payments,” or “tokenized cash” have more than doubled in two quarters.

As the line between fintech and crypto blurs, and as regulatory clarity inches forward, the winners in this space will be those who pivot early, scale fast, and ride the wave of stablecoin momentum—not just as assets, but as infrastructure.