What are stablecoins and how are major companies implementing them today?
By Vanessa Malone
Stablecoins are one of the most widely used applications of tokenization today. Tokenization turns assets into digital representations for quicker and more efficient transactions. For stablecoins, this means tying their value 1:1 to a traditional currency like the U.S. dollar, ensuring stability while benefiting from more seamless movement across global markets.
Major financial institutions and fintech leaders are integrating stablecoins into their operations, from cross-border payments to institutional settlements. Companies like PayPal, Visa, JP Morgan, and even government entities are actively using and investing in the technology. Upstream, a MERJ market and global stock trading app, also leverages stablecoins, allowing users to fund their accounts with USDC and USDT for streamlined trading. Let’s dive into how other industry giants are leveraging stablecoins today.
PayPal
PayPal launched their own stablecoin called PayPal USD (PYUSD) in August 2023. As of February 2025, it’s market cap hovers around $588 million.¹ The stablecoin is designed for everyday payments, allowing PayPal users to send, receive, and convert it seamlessly within the platform. Users can also send to Ethereum and Solana wallet addresses that accept PYUSD. Jose Fernandez da Ponte, PayPal’s SVP of Blockchain, Crypto and Digital Currencies stated “stablecoins will help revolutionize commerce globally with faster, cheaper, programmable money movement.”²
Visa
Companies like Visa have partnered with Circle and USDC for global payments and settlements. USDC, a stablecoin pegged to the U.S. dollar with a market cap of $56 billion,³ is increasingly being used for instant and cost-effective cross-border transactions. This can be especially valuable for businesses that need to send payments quickly and securely without any delays and fees that can be associated with traditional banking systems. In October 2024, USDC announced its integration into Brazil and Mexico’s banking systems, streamlining accessibility to exchange Brazilian reais and Mexican pesos for USD-pegged stablecoin through local financial institutions.
JP Morgan
In February 2019, JP Morgan introduced JPM Coin, a tokenized bank deposit used by institutional clients for real-time cross-border payments and wholesale settlements. The goal was to improve liquidity efficiency for its institutional clients. At the end of 2024, JP Morgan rebranded Onyx, one of the first bank-operated blockchains, into Kinexys Digital Payments, and plans to introduce on-chain, automated foreign exchange capabilities in 2025.⁴
The Bank of England
The Bank of England recently announced plans to explore a central bank digital currency (CBDC) and set up a Digital Securities Sandbox (DSS) in partnership with the Financial Conduct Authority (FCA). This initiative provides financial institutions with a regulated environment to experiment with issuing and trading tokenized assets, including stablecoins, paving the way for broader adoption of digital currencies in the financial ecosystem.⁵
United States of America
In January 2025, President Trump issued an executive order emphasizing stablecoins as a key tool for maintaining the U.S. dollar’s global dominance and ensuring financial stability. The order highlights the importance of stablecoins in the evolving digital finance landscape, positioning them as a preferred mechanism to support both the U.S. economy and global financial systems. The executive action points to the government’s focus on integrating stablecoin technology to enhance digital financial infrastructure.⁶
Conclusion
The involvement of major companies in stablecoins is a crucial step toward widespread adoption and understanding of tokenization technology. As these industry giants integrate stablecoins into their operations, they help to demystify the technology, and create new opportunities for efficient transactions. With increased use across sectors, stablecoins are poised to play a significant role in the future of digital payments and financial systems.
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Sources
1 CoinGecko 2 LinkedIn 3 CoinDesk 4 JP Morgan 5 Bank of England 6 Whitehouse.gov
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