Bridging the Gap: From Stablecoin Use Cases to Commercial Viability
Federal Reserve Governor Christopher Waller's recent remarks (link in comments) at A Very Stable Conference underscored a critical challenge facing thestablecoin market: the distinction between a use case and a commercial case. It’s a distinction that is often overlooked but is essential to understanding the trajectory of stablecoin adoption.
Waller outlined the primary use cases for stablecoins—crypto trading, crossborderpayments, dollar access in high-inflation economies, and retail transactions. However, he was quick to highlight the fundamental challenge: a use case alone does not ensure economic viability.
The real question is whether stablecoin issuers can build sustainable business models that operate at scale, navigate regulatory complexities, and maintain consumer trust.
His speech also made clear that the regulatory landscape is deeply fragmented. Domestically, state regulators are taking divergent approaches to stablecoin oversight, while internationally, jurisdictions like the EU are imposing vastly different reserve and redemption requirements. Federal legislation and regulation are in the works. This lack of consistency presents a major barrier to the global scalability of stablecoins.
I’m currently working with Matt Burton, Elliot Storey, and Alex Pedraza to help banks, neobanks, and fintechs navigate precisely this gap—bridging the use case to the commercial case while managing the technical, legal and regulatory implications on a global basis.
We’re exploring orchestration layers that allow financial institutions to integrate stablecoins seamlessly, ensuring compliance with evolving regulations while enabling the scalability and usability that Waller emphasized as critical.
If you're a bank or fintech looking to integrate stablecoins into your offerings but facing technical and regulatory uncertainty, let’s talk.
The future of stablecoin adoption depends on solving these challenges, and we’re building the solutions to do just that.
