Payment Stablecoin

A type of stablecoin designed primarily for transactional use rather than for investment or collateral purposes. Integrated into payment systems and merchant networks to enable rapid, low-cost settlement. It connects digital assets with traditional payment rails within regulated financial frameworks.

Stablecoins vs. Payment Stablecoins

The broader category of stablecoins historically operated with less regulatory oversight. Payment stablecoins are a kind of stablecoin, with the key difference being that payment stablecoins are an evolution of the stablecoin concept that is specifically defined and regulated under frameworks like the U.S. GENIUS Act and EU's MiCA. These regulatory frameworks are designed to ensure that payment stablecoins are less likely to become de-pegged from the corresponding fiat currency.

Why it Matters

Payment stablecoins matter because they bridge the gap between traditional finance and digital assets, enabling businesses to move money across borders instantly without the volatility typical of cryptocurrencies. They reduce transaction costs, eliminate intermediaries, and provide programmable money capabilities while maintaining regulatory compliance—making them essential infrastructure for the future of commerce and cross-border payments.