Stablecoin in Corporate Treasury: Separating Four Myths from Reality.
We debunk the myths that may be holding back treasury adoption.
The myths about stablecoin are confusing the approach for many businesses. Firms want to benefit from this new technology, but it changes quickly and conflicting information is everywhere. For corporate treasury there’s the potential for more flexible payments, which can fuel growth. But lurking on the sidelines are issues around volatility, regulation and actual benefits.
We’ve taken a look at four of these myths and outlined the reality in the market.
Myth 1. Stablecoins are just another crypto currency.
Reality: They are different because they are designed to remain stable. Cryptocurrencies and stablecoin do use the same blockchain technology, but for different ends. Volatile cryptocurrencies like Bitcoin or Ethereum focus on speculation or rapid growth. Stablecoins are not trying to be an investment asset, they function more like digital cash, offering a predictable value. This makes them a good tool for payments, treasury operations and cross-border settlement.
The stability comes from being backed by fiat currency reserves or other assets like cash and short-term government securities. Unlike cryptocurrencies, whose price can fluctuate significantly, stablecoins aim to remain pegged to the currency they are denominated in. Account holders with the stablecoin issuer typically have the right to redeem them at par.
Myth 2. Stablecoins operate outside regulation
Reality: Most major financial regulators are incorporating stablecoin rules into their domestic ecosystems. Frameworks are emerging rapidly in major markets, including the EU’s MiCA regime and the USA’s Clarity, as regulators introduce rules around issuance, reserves and compliance. The conversation has moved on from whether stablecoins will be regulated, to which already meet regulatory and compliance requirements.
For example, the EU formally rolled out is Markets in Crypto-Assets regulation (MiCA) in 2024. This year it is consulting on how well it has worked, with the aim of consolidating financial market supervision. Its review will look specifically at stablecoins, international payments, tokenised assets and the interaction between MiCA and broader, financial services regulation. We’ve had a look at what we expect for 2027 in our August newsletter.
In the USA stablecoins became a major component of regulated finance in July 2025. The Genius Act was signed into law and has this year been followed by Digital Asset Market Clarity Act, known as the Clarity Act. It seeks to institutionalise the oversight of digital assets as a whole in the US. However, the Act was not passed by the Senate before the summer recess, so we’ve taken a look at what’s happening with it in our Freethinking section.
Capital centres such as Dubai, Hong Kong and London either have or are finalising stablecoin regulatory regimes as they look to preserve their roles in global finance and to protect their monetary sovereignty.
Around the world, businesses, and their clients, can be confident that they are increasingly working within a regulated sector.
Myth 3. Stablecoins will replace banks and traditional payment networks
Reality: It’s more likely that stablecoin will become another settlement rail. Banks, payment networks and stablecoin providers are increasingly partnering to improve settlement speed, reduce costs and enable new payment flows. Most enterprise-adoption scenarios involve stablecoins complementing existing banking infrastructure, rather than replacing it.
Of course, there is greater demand in some regions that others. For London/New York transfers, the traditional methods will probably hold. But in other corridors, stablecoin offer a much more efficient service. For companies looking to exchange between Argentina and China for example, the time zone differences can cause overnight, or even over-the-weekend delays. Extracting from the local fiat, into stablecoin, and back out again will be quicker and cheaper than via traditional routes.
Myth 4. Stablecoins only solve a cost problem.
Reality: They offer flexibility that frees up working capital. This myth only looks at the features of stablecoin, not its effect on the business. They do solve a cost problem by lowering transaction fees, and they solve a speed problem too. For many corridors and companies, stablecoin will make them more efficient by offering:
Near real-time settlement
24/7 transaction capability
Reduced trapped liquidity
Greater transparency of payment flows
Programmable payments and automation
But it’s not just about the features or the price. It’s about what that speed and cost efficiency does for the business. Faster payments free up working capital, so investments can be made elsewhere in the business.
Stablecoins offer Treasury teams greater flexibility. Teams are often limited by having to operate within banking hours, despite business and trading activity occurring around the clock. Stablecoin networks continue operating during weekends, public holidays and after market cut-off times. This gives Treasury greater liquidity as they can move money when needed rather than waiting for banking windows.
Using stablecoins can spur growth through operational efficiency. For us at Freemarket, the strategic value is often less about saving a few basis points and more about transforming how money moves through the business.
Any relatively new technology will generate myths. The flex comes from being able to separate the reality from the misconception. The current status is that stablecoin can benefit corporate treasury through a level of regulated flexibility that can drive business growth, globally.
If you’re interested in finding out more, contact one of our team.