Stablecoins in the Spotlight—and the Infrastructure Race Is On

GENIUS Act Regulation Stablecoin

TaxBit VP Marketing, Community, Innovation

Michelle O'Connor

TaxBit VP Marketing, Community, Innovation

Michelle O'Connor

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Michelle is recognized as a Top 5 Woman in Blockchain, CSO and Board Chairwoman for The Association of Women in Crypto.

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May 14, 2025

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Stablecoins have long been the quiet workhorses of the digital asset world—reliable, liquid, and often overlooked. But those days are over. With billions in daily transaction volume and growing scrutiny from policymakers and institutions alike, stablecoins have become crypto’s most consequential talking point today. And it’s not just about use cases anymore—it’s about infrastructure, power, and who controls the rails of tomorrow’s financial system.

The recent announcement that Ripple will launch a U.S. dollar-backed stablecoin is the latest signal of what’s coming. While Ripple’s move is notable, given its global footprint and regulatory posture, it’s also part of a much larger shift: stablecoins are no longer merely backend utilities for crypto traders or cross-border remittances. They’re becoming the front line of programmable money, and the next competitive frontier for financial and fintech giants.

The Stablecoin Layer Is the New Infrastructure Battleground

Just a few years ago, the dominant narrative in crypto revolved around DeFi protocols, NFT booms, and Layer 1 wars. But as the dust settles from the speculative cycles, what’s left standing—and growing—is the demand for stable, composable, and interoperable digital dollars. The stablecoin layer has become the foundational infrastructure layer for the on-chain economy.

Whether it’s payments, lending, tokenised securities, or enterprise adoption, stablecoins are the glue. They provide the trust and liquidity necessary to enable real-world applications without requiring users to hold volatile assets. In many ways, they are the bridge between traditional finance and the blockchain-based future.

But that bridge is still under construction—and the question is, who will own it?

Why Everyone’s Paying Attention Now

Stablecoins are on track to play a central role in how money moves across both public and permissioned blockchains. With regulatory frameworks beginning to take shape in the U.S. and Europe, such as MiCA in the EU and new stablecoin bills proposed in the U.S., the market is entering a phase of validation and acceleration.

What we’re seeing now is a scramble to stake a claim. Tether and Circle may have first-mover advantages, but they won’t go unchallenged. PayPal has entered the ring. So has Stripe, with a deeper interest in on-chain settlement. Fintechs, infrastructure providers, and even banks are circling the space, not just to issue their own tokens but to acquire, integrate, or partner with stablecoin-native companies.

The next wave of M&A is inevitable—and it won’t be limited to crypto firms buying other crypto firms. Expect traditional financial institutions, private equity, and tech giants to make moves. Why? Because owning the infrastructure layer—the wallets, the rails, the issuance, the APIs—is the equivalent of owning the operating system for the future of digital finance.

From Compliance Burden to Competitive Advantage

Once considered the most significant obstacle to stablecoin adoption, regulation is quickly becoming a differentiator. Players who can demonstrate transparency, auditability, and compliance are finding themselves at the front of the pack. What was once a regulatory burden is now a strategic moat.

This is particularly relevant for companies serving institutional clients, governments, or embedded finance applications. In those contexts, trust isn’t a nice-to-have—it’s essential. The winners in the stablecoin space will be those who can not only move money at scale, but do so within a clear legal framework that satisfies compliance officers and central banks alike.

The Strategic Shift: From Token to Ecosystem

We’re past the point of thinking about stablecoins as standalone products. The real opportunity lies in ecosystems. That means full-stack platforms: custody, issuance, on/off-ramps, developer tools, KYC/AML layers, and liquidity provisioning. It’s about creating modular, programmable infrastructure that fintechs, neobanks, and enterprise platforms worldwide can integrate.

This is where the battle will intensify. The infrastructure war will not be won solely by who has the most tokens in circulation, but by who builds (or buys) the stack that makes stablecoins useful, scalable, and invisible to the end user.

Think Stripe for stablecoins. Or the AWS of tokenised dollars. That’s where this is headed.

What Comes Next

Expect more consolidation. Expect more regulation. And expect more capital to flood into companies that are building the connective tissue of this new financial layer.

The stablecoin story is no longer niche—it’s macro. We’re talking about the potential reshaping of the global payments system, the modernisation of financial infrastructure, and a new model for monetary sovereignty in a digital world. Governments are watching. Institutions are testing. And the public sector, especially in emerging markets, is starting to see the value in alternatives to legacy rails.

What began as a technical solution to crypto volatility has become one of the most significant innovations in digital finance. Stablecoins aren’t just a product category—they’re a platform shift.

The question now isn’t whether stablecoins will go mainstream. The question is: who will get there first, and what will they own when they do?

Disclaimer: The opinions in this article are the writer’s own and do not necessarily represent the views of Cryptonews.com. This article is meant to provide a broad perspective on its topic and should not be taken as professional advice.