Stablecoins blend with APAC card networks

By Aarav Garg

Stablecoins are moving closer to everyday payments in the Asia-Pacific (APAC) region, with providers integrating them into existing card networks rather than building separate systems.

A report by Thredd, in collaboration with Reap and Fireblocks, highlights this shift. Rather going through multiple steps to spend stablecoins, users can increasingly pay directly from their balances through card-linked solutions. This removes the need to move funds between wallets, exchanges and bank accounts, reducing both time and cost.

In this model, transactions still run through traditional card networks, while blockchain systems handle settlement in the background. The user experience remains largely the same, but the funding source shifts from bank accounts to digital wallets.

Despite this change, traditional payment rails remain essential. Card networks continue to provide merchant acceptance, fraud protection and compliance measures such as know-your-customer (KYC) and anti-money laundering (AML) checks. These features are still difficult to replicate fully using decentralised systems alone.

A key layer enabling this integration is issuer processing infrastructure, which connects digital wallets, blockchain networks and card schemes. Companies such as Thredd, Reap and Fireblocks are developing systems that allow FinTech firms to link stablecoin balances directly to card payments, creating a blended payment model.

Business adoption is also growing quickly. Business-to-business stablecoin payments reached an annualised run rate of around $36 billion by early 2025, as companies look for faster and lower-cost ways to move money across borders. Stablecoins are also being used in treasury operations to reduce the need for repeated foreign exchange conversions.

APAC is playing a leading role in this shift, supported by clearer regulations and strong digital adoption. Singapore has introduced rules for single-currency stablecoins, while Japan has established a framework for fiat-backed tokens. Australia is progressing its regulatory approach, and Hong Kong recently issued its first stablecoin licences.

The report suggests stablecoins are becoming part of existing financial systems rather than replacing them, acting as a behind-the-scenes settlement layer in everyday payments.