Through extensive analysis and exploration, we’ve found that stablecoins represent a highly promising and multifaceted opportunity for entrepreneurs, founders, and businesses operating across Web2 and Web3 domains. Stablecoins offer a unique trinity of value creation: scalable and consistent revenue models, solutions to systemic challenges in emerging and developing economies, and operational efficiencies that empower businesses to compete on a global scale.

Conclusion: Stablecoins redefine onchain and real-world business

To fully understand why stablecoins are a game-changing opportunity for businesses, it’s crucial to unpack the specific ways they create value. From generating significant profits to opening new markets and streamlining operations, stablecoins have proven to be a multi-dimensional tool for both Web3-native and traditional enterprises.

Let’s summarize the key pillars of this value creation:

1. Diverse and scalable revenue models

Stablecoins have proven to be highly lucrative, creating reliable revenue streams across both centralized and decentralized ecosystems:

• High revenue potential: Tether (USDT) and Circle (USDC) showcase the power of stablecoins to generate substantial revenue. In 2023, Tether achieved over $6.2 billion in revenue through interest on reserves and transaction fees, with a staggering $62 million in revenue per employee, far surpassing many leading tech companies.
• Corporate integration: Companies like PayPal and Stripe integrate stablecoins to drive cost-efficient payments and unlock new revenue streams. PayPal’s PYUSD, used by over 430 million users, and Stripe’s USDC payments highlight stablecoins’ versatility in traditional and Web3 business contexts.

2. Expanding opportunities in emerging and developing economies

Stablecoins address critical challenges in regions with unstable currencies and limited access to traditional banking:

• Driving financial inclusion: In high-inflation economies like Argentina and Turkey, stablecoins serve as a hedge against currency devaluation and provide a stable store of value. This accessibility connects individuals and businesses to global financial systems, bypassing local economic instability.
• Growing adoption and market potential: With 45% of consumers in emerging and developing economies using stablecoins (compared to only 17% in advanced economies), these regions are primed for innovative stablecoin-based solutions, from remittances to business operations. Entrepreneurs have a unique opportunity to create products tailored to these fast-growing markets.

3. Enhancing business operations with non-revenue benefits

Beyond direct revenues, stablecoins deliver operational efficiencies and open new avenues for financial participation:

• Cost efficiency: Stablecoins reduce transaction fees and enable near-instant settlement, revolutionizing cross-border payments and global trade. Businesses save time and money by eliminating intermediaries in financial transactions.
• Liquidity management and speed: Stablecoins help businesses streamline operations and reduce reliance on traditional banking systems by offering stable, easily accessible liquidity.
• Access to DeFi innovations: Stablecoins are the foundation of decentralized finance, empowering businesses to explore yield generation, lending, and borrowing with reduced risks compared to volatile cryptocurrencies.

4. Strategic advantages over traditional finance and CBDCs

Stablecoins provide unique benefits that distinguish them from traditional financial systems and Central Bank Digital Currencies (CDBCs):

• Decentralization and user control: Stablecoins empower users with greater privacy and financial sovereignty, avoiding the centralized oversight and restrictions often associated with CBDCs.
• Interoperability across networks: Operating seamlessly across multiple blockchain platforms, stablecoins enable global accessibility, outpacing the limitations of traditional banking and national digital currencies.
• A catalyst for innovation: Stablecoins support smart contracts and decentralized applications, driving the creation of innovative financial instruments and services. These advancements position stablecoins as enablers of the next wave of blockchain innovation.

Final thoughts: A call to action

We’ve done our part in researching the stablecoin landscape; now it’s up to you to turn this knowledge into action. 

Stablecoins have reached an inflection point. They are no longer an experimental idea but a proven financial tool, reshaping industries and opening doors to new possibilities. Businesses that act now — whether by launching stablecoin-based solutions, integrating them into existing workflows, or adopting them to improve financial efficiency stand to gain an edge in the market.

We believe now is the time to embrace stablecoins. They are the backbone of Web3. They are also the bridge from today’s challenges to the innovation of tomorrow — an increasingly problematic Web2 and the solutions offered by Web3 technology. The question is no longer “Why stablecoins?” but “How can we use them to build a better future?”

For entrepreneurs, founders, and existing businesses, stablecoins offer distinct real-world advantages:

• Revenue generation: Robust and scalable business models through interest earnings, transaction fees, and integrations into financial services.
• Market expansion: The chance to tap into emerging markets, serve underbanked populations, and unlock new customer bases, fueling growth and financial inclusion.
• Operational improvements: Integrations with DeFi platforms and other tools enhance transaction efficiency, reduce costs, and optimize financial operations. 
• Competitive advantage: Early adoption of stablecoins strategically positions businesses in a fast-evolving financial landscape, granting a lead in operational capability and innovation.

Yes, but… there’s always a ”but” in transformative technology, and stablecoins are no exception. You must be aware of regulatory uncertainty, technical hurdles, and market competition, which require a critical perspective.

• Balanced innovation: Embracing innovation while prioritizing risk management.
• Regulatory engagement: Actively working with policymakers to ensure clear, supportive regulations.
• Education and awareness: Investing in user and stakeholder education to drive trust, adoption, and informed decision-making.

So, make sure to be informed about the latest developments in these areas. You know as well as we do how dynamic and full of surprises the crypto space can be.

It’s our job to help you with that. Bookmark the Onchain Research page, sign up for the Onchain newsletter, regularly read the Onchain Magazine, and follow us on the socials. But don’t rely on us alone. Check what others post on our newly launched Web3 Insights Marketplace (for now, it’s the intro version; we’re busy developing the real thing that will soon be available).