Reimagining Financial Infrastructure: How Are Stablecoins Quietly Reshaping Global Value Flows?
Author: Alec Goh
In the digital age, financial infrastructure is being quietly rewritten – interlocking and intertwining. At the heart of this change is stablecoins – a cryptocurrency pegged to fiat currencies such as the US dollar – which is evolving from a speculative instrument to a key enabler of cross-border transactions, liquidity acquisition, and programmable finance.
Once upon a time, stablecoins were limited to a niche segment of crypto exchanges. Today, in regions facing inflation or capital controls, it is driving remittances, trade finance, and even payroll payments. As HTX Ventures' research report, "The On-Chain Extension of the Dollar: Stablecoins, Shadow Banking, and Global Payment Reweighting," points out, stablecoins have become a "lifeline" in markets such as Turkey, Argentina, Lebanon, and Nigeria – not for speculation, but for hedging, settling cross-border transactions, and accessing USD liquidity.
This shift is not only behavioral, but also architectural. As capital flows upchain, the infrastructure of the currency itself is being reconstructed. Processes that used to be done through correspondent banks and SWIFT are now being implemented through smart contracts and decentralized protocols, reducing costs and settlement times while increasing transparency.
Programmable Value and Financial Synergy
In addition to speed and cost, programmability is redefining financial logic. Stablecoins can be embedded in smart contracts to automate compliance, custody, and interest payments – unlocking new synergies for capital. For SMEs and startups, this means being able to use financial instruments that were previously only available to large institutions.
Platforms such as Aave, Compound, and Curve have evolved into decentralized money markets that enable stablecoins to be borrowed and swapped without intermediaries. This disintermediation has not only improved efficiency, but has also created the need for new trust mechanisms – driving the rise of on-chain proofs, proof-of-reserves, and real-time audits.
The emergence of "shadow money" and systemic risk
As stablecoins grow in size, they also introduce "shadow liquidity" into the global system. These are the dollars that exist outside of the traditional banking system – circulating through wallets, protocols, and APIs, but backed by real-world assets (RWAs) such as short-term sovereign Treasuries. Stablecoins are increasingly being used as collateral, yield instruments, or repledged assets, which introduces a hierarchical risk structure – similar in nature to a shadow banking system, albeit with greater transparency.
But transparency is not the same as immunity. Risks such as overcollateralization, smart contract exploits, and chain liquidations persist – and are often amplified by the composability of the protocol. For stablecoins to realize their utility value on a global scale, systemic risk protection measures must evolve in tandem. This includes standardized audits, circuit breakers, and insurance mechanisms to contain shocks in extreme scenarios.
HTX Ventures also noted that while the visibility of smart contracts has increased, the complex interdependencies between cross-chain bridges and DeFi protocols have created new systemic risks. These structures require the same level of protection as traditional financial markets – just built in a new language: code.
The patchwork of global regulation
The regulatory outlook remains fragmented. In the U.S., the recently proposed GENIUS Act aims to establish a clear and unified framework for stablecoin issuance. The bill calls for 1:1 reserve backing in cash or short-term U.S. Treasuries, real-time audit disclosures, and limits algorithmic or uncollateralized stablecoins — a significant step toward integrating stablecoins into the formal financial system.
At the same time, Europe's MiCA framework calls for capital buffers and 100% reserve support, as well as increased oversight and thresholding for "significant" tokens. Practices vary across Asia. Singapore has introduced a licensing regime for stablecoin issuers, with a focus on overseeing reserve audits and redemptions. Hong Kong is developing a regulatory sandbox, while Japan requires stablecoins to be issued through licensed banks or trust companies. Nigeria, by contrast, has issued a stern warning about the use of stablecoins, citing financial sovereignty.
For builders and investors, this patchwork creates both regulatory risk and first-mover advantage opportunities. Projects that proactively comply with emerging standards may be more likely to be more popular with institutions and payment service providers.
Stablecoins: Leveraging the wedge of real-world utility
As the flow of value becomes increasingly digital, stablecoins offer a rare blend of crypto-native features and real-world utility. From U.S. dollar settlements in emerging markets to tokenized U.S. Treasury lanes for global investors, its use cases are rapidly expanding across industries and continents.
A notable sign that stablecoins are moving towards mainstream is the listing of USDC issuer Circle on the New York Stock Exchange. As the first major stablecoin issuer to go public, Circle brings greater visibility and credibility to the space, helping to bridge the gap between regulatory compliance and institutional adoption. This milestone solidifies USDC's position as a transparent and regulated stablecoin – it is commonly used in corporate settlements, fintech platforms, and increasingly in tokenized asset channels.
This expansion did not happen in isolation. It's part of a broader shift toward "decentralized infrastructure with institutional-grade safeguards." With the development of RWAs, central bank integration, and compliance-focused centralized decentralized finance (CeDeFi), stablecoins are becoming an organizational link between the traditional and decentralized economies.
The future is not just defined by code, but by those who can navigate policy, build trust, and design systems that scale responsibly. In this sense, stablecoins are more than just a payment tool – they are the foundational layer that reconstructs the flow, settlement, and growth of value in a digital world.
About the Author:
The author of this article, Alec Goh, is the head of HTX Ventures, the international investment arm of HTX, one of the world's leading cryptocurrency exchanges. Alec leads strategic investments in high-potential digital asset projects with a focus on infrastructure, compliance-first DeFi, and stablecoin ecosystems. At HTX Ventures, he led M&A and investment efforts, helping the company expand globally and complete a number of high-profile projects in the industry. With a global financial background and deep structured transaction experience, Alec is committed to connecting institutional capital with the next generation of Web3 innovation.