Could Stablecoins be the Future of Payments and Financial Integrity?

1 Oct 2026 01:33 PM

Stablecoins are becoming important payment infrastructure, but policymakers are still trying to govern them through the financial crime frameworks built for traditional finance.

It is hard to ignore stablecoins, as they are no longer a niche debate for crypto enthusiasts. Hardly a day passes without a new regulatory announcement or debate warning of potential financial crime or stability risks. At the same time, the policy conversation is becoming more nuanced. In July, a UK–US joint statement explicitly recognised that ‘well-regulated stablecoins have the potential to promote efficiency and competition in our financial systems, modernise financial market infrastructure, and improve cross-border payments and transactions’.

Away from the headlines, adoption is accelerating at a remarkable speed. By April 2026, the stablecoin market had reached around $317 billion, up more than 50% since early 2025. The appeal is simple. Stablecoins are designed to maintain a stable value, which makes them less volatile than other cryptoassets. They also offer faster and cheaper cross-border payments, and in many emerging markets they are a good value-preservation tool, particularly where inflation is high and domestic currencies and banking systems are not well trusted.

At the same time, regulators have focused on the risks that stablecoins bring. The Financial Action Task Force (FATF), for example, has highlighted the illicit finance risks associated with stablecoins, describing them as ‘the most popular virtual asset used in illicit transactions’. Yet the real debate has moved beyond whether stablecoins are here to stay. That question has been answered by market growth and adoption. The more relevant issues are what role stablecoins will play in the future and how policymakers can preserve their benefits while addressing financial crime risks.

To assess these questions and explore the future of stablecoin regulation, the Centre for Finance and Security at RUSI convened two expert roundtables in partnership with Stripe in March and June this year. The roundtables brought together policymakers, regulators, financial institutions, blockchain analytics firms, technology providers and industry experts in London and Brussels. The discussions pointed towards a common conclusion: stablecoins should be understood as payment infrastructure, not another category of cryptoassets.

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