QCP Clarifies: Top questions we’re hearing on stablecoins

Treasurers can now move money at midnight. Trading desks now manage liquidity across markets that never close. Stablecoins are part of the infrastructure making this possible.

As stablecoins become more mainstream, the questions are now changing. Which stablecoins actually matter? Does the market need more of them, or better ones? What does OpenUSD signal about where settlement’s heading? And what are the real risks as adoption increases?

We asked our resident stablecoins experts Kenneth Ong, Senior Spot Trader and Lionel Koh, Head of Sales, to answer these questions directly and cut through the noise.

What’s driving the latest phase of stablecoin growth?

Kenneth: In my view, the predominant drivers are straightforward. You’ve got demand from countries with weaker currencies. People want to hold USD, and stablecoins are a way to do that. There are also corporates who want 24/7, faster payment rails instead of traditional banking rails with cut-off times.

“And now, with the GENIUS Act being enacted, you get a lot more confidence. There’s greater regulatory clarity for US payment stablecoins. That’s when you see real institutional players move from watching to deploying actual volume.”

It’s not about belief anymore but rather having risk management and infrastructure being in place.

Does the market need more stablecoins, or better connectivity between them?

Kenneth: It’s not about quantity. It’s about depth. USDT and USDC remain the two entrenched players because they’re everywhere.

The network effect matters more here than almost anything else—because we’ve seen stablecoins fail to penetrate the market simply because there wasn’t enough participation on their blockchain. The infrastructure and issuer were not the issue. There simply wasn’t enough critical mass for the network to breathe.

“New entrants don’t have that same network effect, which is why they tend to fail. What clients actually ask for isn’t more choice, it’s deeper liquidity in the ones that work everywhere.

Tell us about OpenUSD? What does this tell us about the market’s direction?

Lionel: At the end of June 2026, an announcement was made about a new stablecoin market participant: OpenUSD, or OUSD for short. It’s a consortium of major fintech companies, asset managers, and banks who are adopting it as part of their payment and settlement flow.

To us, that’s validation of something we’ve been saying, and driving, for years: this space is becoming genuinely institutionalized.

These institutions aren’t new to stablecoins, but locking into a shared standard signals a shift. We’ve moved past the “who wins?” fight to thinking more about whether these systems can actually work side by side.

Could non-US currency stablecoins become more important?

Kenneth:

“We believe the dominant currency will still be US dollars. It’s currently the currency of global trade. But there’s definitely a place for local currencies too. Even within stablecoins, you’ve got EURC, AUDT, and a lot of countries, including Singapore, coming up with their own local stablecoins.“

One use case that isn’t fully tapped yet is FX. People doing FX conversions today send dollars and wait for the other currency to settle. Traditional FX settlement is typically within T+2 days. With stablecoins on the same blockchain, that can happen within the same day, even within hours. That could become much bigger than people realize. Not because they want to avoid the dollar, but because it’s simply more efficient.

Lionel: It’s going to be quite subjective, depending on the underlying purpose. For the most part, trade and settlement is still largely done in US dollars, which naturally favors dollar-denominated stablecoins. The bigger question is whether, from an international trade standpoint, people will want to settle in other currencies. That would drive organic growth in non-USD stablecoins.

For us, we remain agnostic and support both dollar and non-dollar stablecoins. Ultimately, it’s about meeting client demand.

What risks become more important as stablecoins enter the mainstream?

Lionel: Cybersecurity is the key one for me. The stakes can also change at scale. Individual wallet compromises are one thing; a breach at a major custodian or issuer could potentially lead to systemic disruption that could freeze markets.

Regulatory risk can also blindside people. Tax and compliance rules can really differ across jurisdictions, plus, it’s continuing to evolve. You need to navigate conflicting frameworks simultaneously, which can make things quite complicated. The cost of non-compliance can also escalate quickly.

Another risk is operational resilience. As volume grows, your infrastructure either scales flawlessly or fails visibly. Once stablecoins become financial plumbing, operational failures in one issuer could create knock-on effects across the system.

How do we mitigate the risks for ourselves, and what do we advise clients to do when looking at risk mitigation? 

Lionel: On our end, we use institutional-grade wallet infrastructure, with checks and balances like maker-checker approvals and MPC configurations. This is especially important for large transaction sizes. It’s not too different from traditional banking, where moving large sums requires dual signatories or customized approval criteria. We’re bringing the same good practices from traditional finance, just overlaid with blockchain and tech infrastructure.

For our clients, we’re blunt about what matters: know your counterparties. Understand which stablecoins are accepted in your jurisdictions. Keep your cyber hygiene sharp.

“And don’t let speed become an excuse for skipping the controls that would matter in traditional finance.”

The blockchain doesn’t make those controls less important, it actually makes them more important, because the settlement is instantaneous. By the time you notice something’s wrong, it’s already done. You don’t want that!

Disclaimer: The views expressed herein are our own and do not constitute investment advice, financial advice, or a recommendation to buy or sell any digital assets. This commentary is provided for informational purposes only and should not be relied upon as a basis for investment decisions. Please consult with a qualified financial advisor before making any investment decisions. Full list of our disclaimers here.