Crypto for Advisors: Stablecoins are ready for prime time

Upgraded Oct 22, 2026, 11:12 a.m. EDTReleased Oct 22, 2026, 10:58 a.m. EDT

Delighted Thursday, consultants!

In today’s newsletter, Prashant Kher of EY-Parthenon on what brand-new study information reveals about where stablecoins are making headway, and what will choose which payment rails scale

In “Ask an Expert,” Sam Boboev of Fintech WrapUp on whether euro stablecoins can challenge the dollar’s lead, and who is finest positioned to win on circulation.

Pleased reading.

-Sarah Morton

Stablecoins are going traditional

A year back, the stablecoin dispute fixated whether regulative clearness and an engaging mix of speed, expense and liquidity advantages would drive significant adoption. The proof now indicates a market moving decisively from experimentation towards execution.

EY-Parthenon’s 2026 Blockchain Payments Survey of 521 business and banks decision-makers discovered that 18% of corporates have actually utilized stablecoins in production, double the share reported in our 2025 study. Tokenized deposits are close behind, with 15% of corporates reporting adoption.

Banks are likewise confirming dedications. An overall of 69% deal stablecoin services or strategy to release them within 2 years, up from 30% in 2025. Amongst banks, 49% currently use or prepare to use tokenized deposits over the exact same duration.

Blockchain payments have actually not yet reached mass adoption, the study findings offer clear proof that the market is moving from innovation trials to incorporating abilities into existing payment workflows and treasury operations.

Source: 2026 EY-Parthenon blockchain payments study

Cross-border payments are the entry point

Cross-border organization payments stay the most typical usage case. Throughout stablecoins and tokenized deposits, 50%to 53 %of all participants have actually & utilized or are checking out each for cross-border provider payments or cross-border business-to-business(B2B )payment approval.

General blockchain payments expedition & adoption

Cross-border B2B streams lead blockchain payment usage cases for many participants, while interest in payments is focused amongst banks and payments companies.

Source: 2026 EY-Parthenon blockchain payments study

These applications straight resolve frictions corporates experience in cross-border payments. An overall of 56 %mention sluggish processing and settlement; 52%mention forex expenses or spreads; 48% point out regulative, sanctions and compliance hold-ups; and 36% mention reporter banking costs. Banks see the matching chance, with faster settlement and lower expenses ranking amongst the leading chauffeurs of interest in both stablecoins and tokenized deposits.

The chance extends beyond standard cash motion. Tokenized property settlement was the most regularly chosen chance to include worth on top of blockchain payment rails, mentioned by 63% of participants from banks, showing strong interest in utilizing blockchain-based cash as a settlement system.

The marketplace is ending up being multi-rail

Adoption is moving beyond a binary option in between stablecoins and tokenized deposits. Amongst participants with an interest in blockchain payments, 45% of corporates and 53% of banks prefer utilizing both rails. Participants mention versatility and the expectation that the 2 techniques will exist side-by-side as leading factors, recommending that various payment requirements will require various types of digital cash.

That choice shows the various functions the 2 approaches can play. Stablecoins offer reach throughout wallets, platforms and public blockchain networks, while tokenized deposits can bring industrial bank cash into programmable environments. Instead of choosing a single rail, companies can pick in between them based upon the usage case, counterparty, location and liquidity requirements.

For banks and payment service providers, the chance is to make that option smooth for customers, allowing them to move in between payment approaches, both standard fiat and blockchain payments, through incorporated procedures and a merged experience.

Combination and programmability will identify what scales

Business expectations prefer ingrained shipment of blockchain payment services. An overall of 76% think about combination with existing business resource preparation, treasury management and banking platforms really essential or vital. In addition, 74% desire blockchain payments completely incorporated into existing banking and payment user interfaces, while just 14% choose a different experience for digital properties.

That choice develops a benefit for incumbent companies: 63% of corporates would likely embrace blockchain payments if provided by their existing bank or payments supplier. Monetary organizations need to develop on relied on relationships with reputable economics, safe and secure execution and regulative preparedness.

Programmability represents a different however complementary chance to develop worth. An overall of 54% of banks currently use or prepare to introduce programmable payments within 2 years, and 75% view them as a minimum of a moderate earnings chance. For banks, the leading concerns for programmable payments consist of liquidity and money management automation at 51%, conditional payments at 51%, automated reconciliation at 49% and cross-border automation at 47%.

Source: 2026 EY-Parthenon blockchain payments study

Outlook

Blockchain payment adoption might progressively happen inside familiar banking and payment items, instead of through stand-alone digital property user interfaces. Organizations that incorporate stablecoins, tokenized deposits and standard rails into existing workflows, while including programmable services above those rails, will be finest placed to lead the next stage of adoption.

Disclaimer: The views revealed in this post are those of the author and not always those of Ernst & & Young LLP or other members of the EY international company.

– Prashant Kher, partner, EY-Parthenon

Ask an Expert
Q. Why are payment business releasing their own stablecoins, such as OUSD, and how could this alter their service designs?

1. Payment business are significantly thinking about releasing stablecoins since they see a chance to record more worth from the cash moving through their platforms.

Today, payment suppliers produce earnings mostly through deal costs, currency conversion and other monetary services. Issuing a stablecoin might produce an extra income stream from the reserves backing tokens in blood circulation, based on the relevant regulative structure.

There is likewise a tactical advantage. A payment business with its own stablecoin might link merchant settlements, cross-border payments and client balances within a single facilities.

This might minimize reliance on external settlement service providers and enhance liquidity management.

Circulation will be vital. Issuing a stablecoin is fairly uncomplicated compared to persuading organizations to hold and utilize it.

I anticipate payment business with recognized merchant networks and strong circulation to have a benefit. Their existing client relationships might assist them turn stablecoins into useful payment items.

Q. Why are banking consortia in the U.S. and Europe establishing stablecoins, and how could they take on existing companies?

1. Banks are progressively worried about losing payment circulations and client balances as stablecoin adoption grows.

In Europe, Qivalis has actually united 37 banks throughout 15 nations to establish a controlled euro stablecoin.

A different international consortia of 21 monetary organizations, consisting of Bank of America, Citi, Goldman Sachs and Wells Fargo, revealed strategies in September 2026 to release a U.S. dollar stablecoin in the very first half of 2027, with euro issuance likewise a top priority.

These efforts might permit banks to use 24/7 settlement while maintaining their function in handling consumer funds.

I see the greatest chance in institutional payments and tokenized property settlement, where banks currently have actually developed consumer relationships and payment facilities.

Contending with existing stablecoin companies will need adequate liquidity and broad circulation.

The genuine test will be whether these consortiums can transform their existing banking relationships into significant deal volumes.

Q. What is driving the push for euro-denominated stablecoins, and can they challenge the supremacy of U.S. dollar stablecoins?

1. Euro stablecoins presently represent a small share of the marketplace. According to Bank of Ireland, simply 0.2% of international stablecoin blood circulation was euro-denominated in May 2026.

This develops an issue for European services that wish to utilize blockchain payments while keeping their deals and treasury balances in euros.

Utilizing dollar stablecoins presents forex expenses and currency direct exposure.

The EU’s Markets in Crypto-Assets (MiCA) guideline has actually supplied a regulative structure for euro stablecoin companies, while European banks are establishing facilities to support euro-denominated settlement.

I see the greatest chances in European B2B payments and business treasury.

Tough dollar stablecoins worldwide will be hard. Dollar liquidity and recognized circulation networks provide existing companies a significant benefit.

The more reasonable chance is to develop a strong euro stablecoin market serving European companies and banks.

Adoption will depend upon liquidity and combination with existing banking systems.

– Sam Boboev, creator, Fintech WrapUp

Keep Reading

• JP Morgan anticipates bitcoin will be the leading carrying out property of the next 10 years.
• The U.S. Office of the Comptroller of the Currency(OCC) has actually released the very first last guideline under the GENIUS Act needing crypto exchanges to look for approval for existing stablecoin benefits programs.
• Switzerland’s Financial Market Supervisory Authority (FINMA) has actually authorized the nation’s very first retail bitcoin fundpermitting direct bitcoin financial investment for daily financiers under stringent danger disclosure and custody requirements.

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