GLOSSARY
Stablecoin
A blockchain-issued token whose value tracks a reference asset, almost always the US dollar. Compliant USD stablecoins (USDC, PYUSD) settle on public chains in seconds at a fraction of correspondent-bank cost.
A stablecoin is a digital token whose price is engineered to track a reference asset — overwhelmingly the US dollar — through full reserve backing (USDC, PYUSD, EURC) or, less commonly, algorithmic stabilisation. Compliant fiat-backed stablecoins are issued by regulated entities and audited monthly; circulation crossed $200B in 2025.
Why it matters
For B2B trade, stablecoins offer 24/7 settlement, sub-minute finality, and predictable cost on USD-corridor flows that would otherwise hop two or three correspondent banks. They aren't a SWIFT replacement for every flow — onramp/offramp friction is the catch — but for high-frequency receivables corridors and treasury sweeps they're already a working alternative.
Related terms
- USDC
- On-chain Settlement
- Correspondent Banking
- ISO 20022