Traditional Finance Embraces Stablecoins: Key Events Overview
We have mentioned multiple times that stablecoins are gradually disrupting the payment industry. Looking back at the past month, numerous leading global payment companies have finally begun to focus on this trend.
In just six weeks, we have witnessed a series of significant events: USDC issuer Circle submitted an application to list on the New York Stock Exchange; Coinbase launched a stablecoin API payment standard, officially entering the agency payment field; Visa and Mastercard further strengthened their support for stablecoins; Stripe released a series of new features, including stablecoin account balances, programmable stablecoins, and stablecoin-supported payment cards.
There is a common core behind these events: meeting user needs. This can be viewed as a “Skype moment” in the payment field.
Looking back to 2003, Skype launched a disruptive feature—allowing users to make cheaper calls to landlines via their computers. However, as more and more people joined the digital calling network, people eventually abandoned traditional phones and turned to internet-based calls on WhatsApp. This marked the seamless transition of technology from landline phones to mobile communication and then to internet-based voice and data connections.
Similarly, connecting stablecoins to traditional payment systems allows more people to access and use stablecoins, even if they still rely on compatible features provided by traditional payment companies. As individuals and businesses gradually adopt stablecoins through existing products, new opportunities will arise—stablecoins will be widely used in self-custody, shopping, remittances, DeFi, and other scenarios.
Key Event Timeline in the Past Six Weeks and Their Significance:
May 7-8: Stripe Launches Stablecoin Financial Accounts
Stripe announced the launch of “Stablecoin Financial Accounts,” allowing business users in 101 countries to hold account balances in stablecoins. In addition, they released USDB, a programmable stablecoin that developers can embed into their applications and earn rewards through building a USDB ecosystem.
Why is this important? Stripe promotes the adoption of stablecoins by embedding incentive mechanisms directly at the stablecoin level and aims to control a larger portion of the payment ecosystem. The stablecoin financial accounts allow Stripe to bypass the complex processes and high costs of traditional banks, competing directly with banks and card networks. The number of supported countries has expanded from 46 to 101. USDB could become the default stablecoin for Stripe’s products, providing more ways to monetize payments.
These measures allow Stripe to leverage neutral blockchain infrastructure, rather than traditional card networks, to offer lower-cost, more customized, broader coverage, and higher-margin products.
May 7: MoneyGram Launches “MoneyGram Ramps”
MoneyGram launched “MoneyGram Ramps,” a stablecoin-enabled cash deposit and withdrawal channel covering over 170 countries.
Why is this important? Stablecoins have already found a market fit in emerging markets, particularly in areas with high remittance demand. However, converting between stablecoins and cash is still difficult, and cash remains a widely used payment method in many markets. MoneyGram, with its global cash network, provides stablecoins with an interoperable solution for daily consumption and spending.
May 6: Coinbase Launches x402 Payment Standard
Coinbase launched x402, a stablecoin payment standard designed for internet-native payments, aimed at enabling atomic transactions between APIs, apps, and AI agents.
Why is this important? You may not know that Visa cannot handle payments under 1 cent. Future “agent payments”—transactions executed by autonomous software agents on behalf of users—will require programmable money to work. If we want these agents to buy goods or services for us, stablecoins will be the ideal choice.
Companies like Stripe and Visa are exploring their own agent payment solutions, and stablecoins are favored for their foundation on trusted, neutral, and decentralized platforms. In contrast, decentralized protocols have no high fees, making stablecoins a potentially more economical option in the long run. The x402 standard integrates stablecoin settlement, intent-based payments, and compliance into one specification, offering speed, composability, and programmability far beyond Visa and SWIFT.
May 6: Visa Forms Strategic Partnership with BVNK
Visa announced a strategic partnership with stablecoin payment infrastructure company BVNK.
Why is this important? Visa’s partnership can be seen as a bet on stablecoin payment infrastructure, directly participating in a payment track that could disrupt its existing business model. By collaborating with BVNK, Visa can not only counter Stripe’s expanding stablecoin payment products but also secure its position in the future payment ecosystem.
Visa’s strategy is smart: it is expected that other traditional payment companies will follow suit, or risk being left behind by startups leading stablecoin payments.
April 28-30: Mastercard and Visa Launch Stablecoin Payment Products
On April 28, Mastercard announced partnerships with Circle, OKX, Paxos, and other exchanges and wallets to launch broader stablecoin integrations, allowing consumers to spend stablecoin balances via Mastercard cards. At the same time, merchants can directly settle fiat card payments as USDC.
Two days later, Visa announced a partnership with Bridge, supported by Stripe, enabling fintech developers to issue Visa cards linked to stablecoins, allowing users to spend stablecoin balances via the Visa network at fiat merchants.
Why is this important? These products significantly lower the adoption threshold for stablecoins by integrating with existing payment systems. Users don’t have to worry about whether merchants support stablecoin payments; they simply use the linked Visa or Mastercard card to make payments.
While stablecoin cards achieve compatibility with traditional payment infrastructure, in the future, merchants may prefer to directly accept stablecoin payments to avoid high card processing fees. At the same time, entrepreneurs will develop more new products, making stablecoins a more preferred payment method.
April 23: PayPal Announces 3.7% Yield
PayPal announced that, starting in 2025, US users holding PYUSD in their PayPal or Venmo balances will earn a 3.7% yield.
Why is this important? PayPal aims to attract more deposits, even if these deposits exist in MetaMask. By offering a yield, they incentivize users to buy and hold stablecoins on their platform, while PYUSD’s use outside the platform also brings PayPal more revenue. Yield is just the first step; further measures may be introduced to boost PYUSD trading volume and integration.
April 21: Circle Launches Circle Payments Network
Circle announced partnerships with several global banks and stablecoin startups to launch the Circle Payments Network, aimed at improving international payments.
Why is this important? Circle directly challenges SWIFT and traditional banking networks, attempting to replace their inefficient messaging services and payment processes. If successful, this move will completely reshape the international payments landscape.
April 1: Circle Files for IPO
Circle submitted its application to list on the New York Stock Exchange, marking further recognition of the legitimacy of stablecoin payments.
Summary
Traditional payment companies have not only recognized the value of stablecoins but are actively building key infrastructure to ensure stablecoins are compatible with existing payment systems, accelerating their adoption. While these products may appear similar to traditional payment methods in the short term, they are laying the foundation for an entirely new on-chain economy.
In the future, we will see more people using stablecoins through traditional payment methods, and the infrastructure improvements launched this year will further drive direct adoption of stablecoins. As stablecoin integration becomes simpler and more intuitive, network effects will emerge: more entrepreneurs will develop a range of innovative stablecoin-based products that can only be realized in an almost instantaneous, nearly free programmable money environment.
This article is a collaborative reprint from: Deep Tide