Finzly unveils its stablecoin and deposit tokenizing strategy for its API-centric, multi-rail payment system platform.
In the rapidly evolving world of finance, a new wave of innovation is sweeping across the industry. Finzly, a leading fintech company, is at the forefront of this revolution, offering a platform that enables banks and financial institutions to harness the power of stablecoins and tokenized deposits.
Finzly's platform functions as a virtual wallet system, allowing banks and fintechs to manage balances tied to stablecoin activity. This infrastructure provides financial institutions with the flexibility to adopt new rails like stablecoins on their own terms, with full control over policy, compliance, and business logic.
The adoption of stablecoins is on the rise, with 2024 statistics showing that they were involved in 50% of cross-border digital transactions, according to the US Treasury. Today, stablecoins are accepted in over 70 countries and are facilitating cross-border payments and remittances.
Stablecoins, digital assets pegged to fiat currencies like the US dollar, offer several key benefits. They enable near-instantaneous payment settlements with transaction fees often below $0.10, reducing the delays and high fees common in traditional banking and cross-border payment systems.
One of the most significant advantages of stablecoins is their impact on cross-border remittances. They offer 24/7 availability, transparency, and reduced inefficiencies, making it easier for users in countries with volatile or restricted banking access to transact globally with stablecoins pegged to stable currencies like USD.
Banks can also leverage stablecoins for more efficient small business loan disbursements and repayments through near-instant settlement. Treasury operations benefit from automated and transparent processes, reducing infrastructure and compliance costs via fintech partnerships.
Financial institutions can retain deposits within their ecosystem rather than losing them to external stablecoin issuers, capturing transaction and service fees. They can also design tailored, automated financial products on tokenized assets.
Recent legislation, such as the GENIUS Act in the U.S., provides clear rules around stablecoin issuance and oversight, enabling banks to confidently integrate or issue stablecoins with full regulatory backing. This fosters safe adoption and competitive advantage.
Stablecoins expand dollar access to unbanked or underbanked populations worldwide, notably in emerging markets with currency instability. This "digital dollarization" supports demand for stable units of account and opens new markets for financial institutions.
Early adopters can reduce costs, improve fraud resistance, and innovate new services to meet evolving financial needs, positioning themselves ahead as the banking sector shifts toward digital asset infrastructure.
Finzly's API-first architecture and programmable rules engine make it easier for banks to implement stablecoin payments in a manner aligned with their compliance, operational, and customer experience goals. The company's infrastructure also makes it easy to integrate with ecosystem partners from custodians to blockchain networks, providing a secure, compliant path to stablecoin adoption.
Forecasts suggest that the circulation of stablecoins could reach $400 billion by the end of the year and $2 trillion by 2028. McKinsey & Company reports that the circulation of stablecoins has doubled to $250 billion from $120 billion over the past 18 months.
In summary, stablecoins and tokenized deposits empower financial institutions to reduce costs, accelerate payments, open new revenue opportunities, enhance cross-border and treasury functions, and extend financial services globally with regulatory confidence and state-of-the-art technology.
- Finzly's platform, facilitated by blockchain technology, allows financial institutions to manage their stablecoin balances effectively, adopting new payment rails like stablecoins compliantly and on their own terms.
- The increasing adoption of stablecoins in cross-border digital transactions, as shown by US Treasury statistics in 2024, reveals their potential to revolutionize finance, particularly by streamlining cross-border payments and remittances.
- Leveraging the advantages of stablecoins, banks can capitalize on more efficient small business loan disbursements and repayments, reduced infrastructure and compliance costs, and even design tailored, automated financial products on tokenized assets.
