The Application of Stablecoins in Enterprises: A Practical Guide for Non-Crypto Companies

With the rapid increase in news about stablecoins, more and more decision-makers are beginning to pay attention to stablecoins and their advantages. Stablecoins are built on four core pillars: instant settlement, extremely low transaction costs, global accessibility, and programmability. While the advantages of stablecoins are easy to understand, how to apply them to existing business models remains a complex issue.

This article aims to provide a beginner's guide for non-encryption enterprises exploring the application of stablecoins, divided into four chapters, each addressing different business models. Each chapter will analyze in detail the value creation points of stablecoins, specific implementation paths, and the restructured product architecture.

Consumer-Focused Fintech Bank

For digital banks, stablecoins can reach new user groups and create additional revenue for existing customers by launching remittance services based on stablecoins. Compared to traditional remittances, stablecoins can achieve faster and lower-cost settlements. In addition, stablecoins can also optimize internal settlement processes and address issues such as weekend settlement delays.

The implementation plan includes:

• Use stablecoins such as USDC for real-time settlement around the clock.
• Integrated wallet service providers connect banking systems with blockchain
• Connect with fiat channel service providers to achieve stablecoin and fiat exchange.
• Use stablecoin instead of fiat currency for weekend settlements
• Quickly allocate funds to partners through stablecoins
• Utilize on-chain stablecoin transfers to achieve cross-border fund allocation

Commercial Banks and Corporate Services

Stablecoins can help businesses overcome the barriers of opening USD accounts and achieve multi-currency fund management. Commercial banks can take this opportunity to upgrade their basic checking accounts to a global fund management solution.

The practical plan includes:

• Provide global multi-currency account services for enterprises to custody stablecoin
• Connect with stablecoin providers to offer high-yield products
• Achieve real-time settlement around the clock
• Supports scenarios such as instant payments for importers and real-time allocation of funds across countries.

Payroll Service Provider

The greatest value of stablecoins for salary payment platforms lies in serving employers who pay wages to employees in emerging markets. Stablecoin payments have advantages such as low cost, high speed, and high transparency.

The practical plan includes:

• Achieve 24/7 real-time settlement
• Collaborate with stablecoin-based card platforms to allow direct consumption of stablecoins.
• Utilize blockchain features to achieve accounting and tax automation
• Achieve programmable payments through smart contracts
• Connect to DeFi protocols to provide salary-based financing services.

Issuing Institution

Stablecoins have created new possibilities for issuance services, including global issuance services, weekend settlements, and more efficient collateral management.

The practical plan includes:

• Launched a global card issuance program priced in US dollars in collaboration with Visa and others.
• Directly settle using stablecoins to achieve weekend and overnight settlements.
• Reduce collateral requirements

In summary, stablecoins have become a practical technology, and developing a stablecoin strategy has become imperative for various financial institutions. Companies that integrate and deploy stablecoin solutions early will gain a competitive advantage in multiple aspects.