Stablecoins and the Future of Payments

If you’ve been hearing more about stablecoins lately, you’re not alone. In just a few years, these digital dollars have moved from the fringes of finance into a fast‑growing part of the global payments landscape. For family businesses—where cash flow and liquidity matter every single day—the rise of stablecoins is worth understanding.

First Bank supports clients as new financial tools emerge and aims to help our clients understand how these tools function. The following overview explains how stablecoins work, how they are used today, and what matters most for businesses that operate in fast-changing markets.
 

What Are Stablecoins?

Stablecoins are digital assets created to hold a steady value, usually one U.S. dollar per token. They differ from cryptocurrencies such as Bitcoin because major U.S. stablecoins run inside private, closed networks and encrypted tokenization rather than public blockchain ecosystems. The value is backed by short-term U.S. Treasury bills, and the structure allows settlement at any hour of the day.

Transaction activity has grown rapidly, with roughly $33 trillion in global volume reported in 2025. Leading issuers in the United States include Circle, Paxos, and BlackRock. These firms produce the stablecoins that account for 85% of the U.S. market and have submitted applications for regulatory charters, signaling growing institutional adoption. Although, financial institutions are reviewing how to integrate stablecoin activity in a way that aligns with policy, risk controls, and compliance standards.
 

How Family Businesses Could Use Stablecoins

Peer-to-Peer Transactions

Stablecoins can support rapid settlement, lower fees, and immediate access to funds once a payment is completed.

Global Trade Payments and Liquidity for Foreign Subsidiaries

Stablecoins make it possible to send cross-border payments in real time rather than relying on older systems such as SWIFT. Some companies use stablecoins to move funds out of markets where cash is difficult to repatriate.

Treasury and Time-Sensitive Payments

Stablecoins can help with payments that need to reach a counterparty without delay. Both sides must use compatible technology, which is an important practical consideration.

Limitations to Keep in Mind

Stablecoin ecosystems operate separately and cannot communicate with one another. A token issued in one system cannot move into another system. Banks are permitted to work only with stablecoins that have received formal government authorization. These restrictions matter for businesses that manage payments across multiple partners or suppliers.

What It Means for Family Businesses

Stablecoins present potential advantages such as faster payment speed, better liquidity management, and settlement that is not tied to business hours. They also present risks and technical constraints that require careful evaluation.

First Bank aims to help our clients understand and review these emerging technologies, focusing on where stablecoins may add value and where traditional payment rails remain a better fit. Guidance from banking partners can support strong decision-making as payment technology continues to evolve in the business landscape.