Stablecoins have moved from crypto-native experimentation to serious infrastructure discussions in the boardrooms of global payments providers. For providers like Convera, which operates one of the world’s largest non-bank cross-border payment platforms, the question is no longer theoretical: Where do stablecoins actually improve margins, liquidity management, or customer outcomes?
The answer, at least today, is nuanced. The technology shows promise in targeted areas such as cross-border payroll and internal treasury optimization. But widespread adoption, particularly in B2B commerce, still faces structural constraints. In this blog, Scott Johnson, Vice President of Technical Program Management at Convera, outlines three practical use cases and the key challenges shaping the trajectory of stablecoins in global payments
Stablecoins for B2C payroll payments
One of the clearest emerging use cases is business-to-consumer (B2C) payroll, especially in a cross-border context, Johnson says.
Payroll flows are different from large corporate payments. They typically feature smaller principal amounts, higher frequency, and greater time sensitivity. For internationally mobile workers or employers in emerging markets, stablecoins introduce two compelling advantages:
- A neutral settlement option: Workers on cruise ships or other globally mobile roles may not have a stable “home currency,” and traditional banking access can be fragmented across jurisdictions. A USD-backed stablecoin can function as a portable digital dollar, independent of local banking systems.
- Protection against currency volatility: In countries with high inflation or exchange-rate instability, being paid in local currency introduces purchasing-power risk. A stablecoin denominated in US dollars offers a hedge mechanism. It allows recipients to hold value in a relatively stable unit of account without direct access to a US bank account.
That said, payroll utility depends on downstream usability. A digital dollar only becomes transformative when it can be spent, converted, or off-ramped easily.
“Acceptance at point of sale and seamless fiat conversion remain essential components of the ecosystem,” Johnson says. “Without those rails, stablecoins are just a store of value — not yet a fully integrated medium of exchange.”
Intermediary asset
Another popular use case is using stablecoins as an intermediary asset in cross-border transfers — a model often called the “stablecoin sandwich.”
In this model, a payment flows from fiat to stablecoin and back to fiat, theoretically reducing settlement friction and bypassing parts of the banking system.
In practice, however, economics matter.
“When we look at the existing providers, they are all more expensive than what we would get through a big transaction bank today — significantly more expensive,” Johnson says.
This is a scale and liquidity challenge. Large institutions such as Citibank and Bank of America operate mature networks with optimized FX corridors, deep liquidity, and established compliance frameworks. Stablecoin networks are still building on a comparable scale.
The promise of blockchain-based settlement is speed and efficiency. But without sufficient transaction volume, liquidity density, and institutional participation, there may be little advantage.
The stablecoin sandwich may prove viable over time, particularly in exotic corridors where traditional banking networks are thin. But in major currency pairs, incumbent rails remain highly competitive.
Stablecoins for internal capital efficiency
Stablecoins may deliver the most immediate institutional value in their potential for capital efficiency.
“Today we have 550 bank accounts around the world to help get payments out locally, which means we have to maintain balances in 550 bank accounts around the world,” Johnson says. “That ties up capital and creates operational complexity because liquidity must be forecasted, allocated, and rebalanced constantly.”
Instead of distributing liquidity across hundreds of bank accounts, Johnson adds that financial institutions and fintechs could centralize balances in regulated stablecoin wallets and deploy them dynamically for FX conversion and local disbursement, reducing idle capital, simplifying liquidity management, and lowering overhead.
“If we could maintain balances in a handful of stablecoin wallets instead, and use that to buy FX and do our last-mile payment, it could give us some capital efficiency,” he adds.
Capital efficiency is a compelling driver for stablecoins, but it requires institutional-grade infrastructure and global regulatory cohesion.
Challenges to widespread stablecoin adoption
Despite the promise of stablecoins, several barriers constrain their broader adoption, leaving Johnson “cautiously optimistic” about some use cases, such as B2B invoicing and B2C point-of-sale transactions.
Until B2B invoicing shifts meaningfully toward stablecoin denominations, most enterprise flows will remain anchored in traditional fiat settlement.
Other key challenges with stablecoins include:
- Regulatory fragmentation: Global payments demand global compliance. Divergent regulatory regimes increase integration costs and reduce scalability. Harmonized frameworks — whether in the US, Europe, or emerging markets — are essential to unlocking institutional participation at scale.
- Liquidity depth: Stablecoins must reach sufficient transaction volume to compress spreads and improve pricing. Without liquidity depth and widespread usage, the efficiency promise remains aspirational.
For cross-border payment providers like Convera, stablecoin use cases are evaluated through a disciplined, economics-driven lens, with goals to:
- Reduce cost relative to incumbent rails
- Improve liquidity efficiency
- Enhance customer experience
- Operate within clear regulatory guardrails
Today, payroll and treasury optimization show the strongest near-term potential, while stablecoin sandwiches and B2B invoicing are more of a long-term prospect.
The trajectory is evolutionary. Stablecoins may reshape cross-border liquidity management and payroll distribution over time, but institutional adoption will depend on scale, compliance alignment, and real economic advantage, Johnson says.
