How Stablecoins Are Revolutionizing Traditional Finance with Next-Gen Payment Rails
Stablecoins aren't just crypto assets—they're rebuilding financial infrastructure from the ground up.
Bypassing Banking Bottlenecks
Traditional cross-border payments drag through multiple intermediaries. Stablecoins cut settlement times from days to seconds while slashing fees by up to 80%. Major financial institutions now pilot stablecoin settlements that operate 24/7—no more waiting for banking hours.
The Infrastructure Shift
Payment rails using dollar-pegged tokens handle billions daily. These digital dollars move on blockchain networks that verify transactions in real-time. Legacy systems struggle to match this efficiency—after all, why settle for batch processing when instant verification exists?
Corporate Adoption Accelerates
From multinational treasury operations to remittance corridors, stablecoins demonstrate tangible utility. They're not speculative assets but functional tools that bridge traditional finance with digital efficiency. Even regulators acknowledge their potential despite typical bureaucratic hesitation.
The irony? Traditional finance spent decades building walls—stablecoins just built better doors. Maybe that's why banks are suddenly so interested in 'innovation'.
A New Stablecoin Report
The stablecoin market is growing to new heights, with many industry leaders predicting far greater accomplishments in the NEAR future.
In this context, Foresight Ventures released a report on stablecoins’ potential, claiming that they could become “the backbone of a global payments rail.”
According to this report, two main factors are converging to boost the stablecoin market. Web3 firms are trying to integrate with TradFi to seize corporate inflows, while financial institutions are looking to blockchain for new functionality and use cases.
Therefore, the market is lifting these tokens up from both directions.
Still, the report is quite clear that not all stablecoins are created equal. The technology has hit certain practical limitations under massive new stress tests, and developers are finding different methods to innovate.
Alice Li, Investment Partner at Foresight Ventures, exclusively shared some insights with BeInCrypto:
“The market is recognizing that general-purpose blockchains may not be optimal for specific use cases. What makes this space particularly interesting is how different projects are approaching the same problem from different angles. It’s not yet clear which approach will prove most successful,” Li claimed.
Differences Between USDT and USDC Approaches
Some of these flaws, such as inconsistent gas fees and slow transaction times, are particularly concentrated in general-purpose blockchains like Ethereum. Foresight’s report examined five new stablecoin projects: Plasma, Stable, Codex, Noble, and 1Money, to determine their successes and failures.
Without getting too lost in the minutiae, this report details some intriguing general trends in stablecoins. Essentially, regardless of the L1 blockchain infrastructure, users are going to use one of the major existing tokens.
These firms will therefore need to cater to assets like USDT or USDC, and most exhibit a strong preference.
The Tether-focused networks broadly focus on DeFi-native economic infrastructure, targeting retail users, while Circle-based projects prioritize institutional capital and regulatory compliance.
1Money, which does not align with either of these models, strives for corporate adoption even more than USDC-oriented projects.
The report assesses all five of these stablecoin settlement layers comprehensively, and interested readers should examine the raw data for themselves.
For now, it’s difficult to say which of these projects will have the most longevity, but there’s a broad spectrum of variation between them.
