Infini Course | Stablecoins: From Volatility Shield to Cost Efficiency Engine

By pegging to fiat currencies, stablecoins effectively mitigate digital asset price volatility and are increasingly used by institutional investors and enterprises as a key medium for payments and settlement. Recent research shows that by 2025, the stablecoin industry is shifting from a singular seigniorage-based model toward a more diversified revenue structure.

In the early days, high on-chain transaction costs and network congestion hindered the mass adoption of stablecoins for everyday payments. However, with continuous improvements in blockchain infrastructure and cross-chain interoperability, the costs of minting, transferring, and clearing stablecoins have been steadily declining. User experience is approaching that of traditional electronic payment systems.

Compared to traditional payment methods, stablecoins offer significant advantages in cost and efficiency: transaction fees are near zero, reducing friction for both cross-border and online transactions. Stablecoins also support real-time settlement, transcending banking hours to enable 24/7 payments. These advantages have led more individuals and businesses to incorporate stablecoins into their payment and settlement flows. As of the end of 2024, more than 28.5 million users globally were using stablecoins, processing over 600 million transactions monthly—a testament to their growing role as a store of value and transactional medium.

Technological Evolution: Scaling Drives Cost Reduction

The structural decline in stablecoin transaction costs stems primarily from major improvements in blockchain network performance. With Ethereum scaling plans becoming reality, modular blockchain architecture gaining traction, and the broader adoption of zero-knowledge (ZK) technologies, on-chain transaction fees are breaking through historical bottlenecks. This opens the door for stablecoins to evolve from “usable” to “high-frequency usable” in payment systems.

Layer 2s and Rollups Reduce Fees: Ethereum’s mainnet had long suffered from congestion, leading to high fees for stablecoin transfers—making everyday micropayments unaffordable. Since 2023, L2s like Arbitrum and Optimism have risen, using rollup technology to batch and compress transactions before settling them on-chain, dramatically increasing throughput and reducing per-transaction cost. On these L2s, stablecoin transfer fees have dropped to a few cents, with near-instant confirmation times. This has made stablecoins viable for consumer payments, cross-border remittances, and merchant settlements. According to Boston Consulting Group, average USDC transfer fees on Ethereum mainnet dropped below $1 within two years. On certain L2s like Coinbase’s Base, fees are as low as $0.01. The dramatic cost drop is clearing the path for stablecoin payment ubiquity.

Modular Chains and App-Specific Networks: Modular blockchain design decouples consensus, security, and execution layers, enabling more efficient and specialized networks. Purpose-built stablecoin issuance chains have emerged. For example, Noble in the Cosmos ecosystem was designed specifically for digital asset issuance. It uses a streamlined and secure architecture, integrated with Cosmos’ IBC protocol to enable seamless, low-cost stablecoin transfers across multiple application-specific blockchains. Similarly, Polkadot's XCM messaging layer allows USD-pegged assets to move freely between parachains, bypassing costly bridges. These modular and multichain architectures mean stablecoins are no longer bound to expensive Layer 1s and can be deployed on high-performance, low-cost networks, dramatically reducing minting and transfer costs.

ZK Proofs and Data Compression: In 2025, Ethereum introduced data sharding (via EIP-4844 proto-danksharding), further reducing data posting costs for rollups. This made L2 transactions even cheaper. Additionally, ZK rollups have begun to power stablecoin networks, enabling highly compressed proofs for bulk settlement of transactions—balancing cost efficiency with strong security guarantees. These cutting-edge innovations are fundamentally reshaping the cost curve for stablecoins, pushing transfer costs closer to that of sending an email.

Network Architecture Evolution: Multichain Interoperability & Cross-Chain Cost Optimization

As stablecoins are increasingly adopted in traditional industries, changes in network architecture are becoming a key driver of operating cost optimization. Currently, the industry is advancing simultaneously across three dimensions—multichain deployment, cross-chain interoperability, and off-chain channels—forming a horizontally distributed and vertically integrated technology stack. This lays the groundwork for low-cost operation of stablecoins in cross-border payments and commercial clearing.

Multichain Deployment Strategy: Structural Cost Arbitrage via Layered Cost Models

To address the heterogeneity across public blockchains in throughput, transaction fees, and accessibility, major stablecoin issuers are actively expanding multichain deployment strategies. This effort builds a globally distributed settlement network that enables cost compression through optimal chain selection.

USDC has aggressively expanded its network since 2023, adding Ethereum L2s, Cosmos, Polkadot, Sui, NEAR, and more. As Base chain stability improves and Coinbase’s ecosystem coordination takes hold, USDC has found high-frequency use cases on Base, with average transaction costs consistently in the $0.001–$0.01 range. It has become a popular choice for institutional on-chain settlements and merchant clearing.

Meanwhile, Solana—with sub-second finality and sub-cent transaction costs (~$0.00025–$0.0005)—has become a hub for high-frequency microtransactions. USDC circulation on Solana continues to rise, becoming the go-to settlement asset for DePIN, payments, and blockchain gaming use cases.

USDT, once dominant on Tron due to near-zero gas fees, introduced a new “energy staking” model in 2025. Users must now stake or lock TRX to acquire energy resources. While this model still offers advantages for large transfers, marginal costs for small and medium users have risen significantly. As a result, many stablecoin payment flows are migrating to Base, Solana, and similar networks—seeking a frictionless, pay-as-you-go experience without pre-staking requirements.

Against this backdrop, multichain routing flexibility is emerging as a critical tool for cost optimization. Stablecoins can dynamically choose the most efficient transaction path via smart contracts or off-chain settlement systems, depending on real-time network congestion, fee structures, and endpoint availability. For example, a $100 transfer request might incur < $0.001 on Solana, around $0.005 on Base, and a variable cost on Tron depending on the user's staked resources.

In short, the “one coin, many chains” strategy not only provides fault tolerance across networks but also fosters ongoing competition among chains—pushing them to optimize performance and cost structures. With cross-chain communication protocols like CCTP, IBC, and Wormhole maturing rapidly, stablecoins are increasingly capable of navigating the trade-offs between cost, efficiency, and security in real time—positioning themselves as the backbone of next-generation cross-border and on-chain settlement infrastructure.

Cross-Chain Interoperability: The Bridge to Break Multichain Silos

While multichain deployments offer flexibility, they also introduce new technical challenges in value transfer across chains. As stablecoins serve both pricing and payment functions, efficient cross-chain flow is essential to their scalability and cost structure. To address the “multichain island” problem, the industry is embracing standardized bridging protocols and trusted interoperability mechanisms—ushering in a new wave of foundational infrastructure upgrades.

For instance, Circle’s Cross-Chain Transfer Protocol (CCTP) allows atomic “burn-and-mint” migrations of USDC between supported chains—bypassing third-party bridges, thereby reducing slippage, saving costs, and eliminating wait times.

In the Cosmos ecosystem, IBC (Inter-Blockchain Communication) enables native, low-cost, and seamless stablecoin transfers across multiple zones. Native USDC on Cosmos can move frictionlessly between chains. Similarly, Polkadot’s XCM messaging framework allows USD-pegged assets to settle automatically and communicate instructions across parachains.

As cross-chain mechanisms mature, they are also driving the development of multichain monitoring and clearing systems. Financial infrastructure providers like Visa have already launched platforms such as the Stablecoin On-Chain Analytics dashboard, which tracks asset flows, confirms on-chain states, and assists in optimal routing decisions. These tools are propelling stablecoins toward becoming enterprise-grade commercial clearing networks, with the potential to replace traditional multi-bank settlement layers.

Off-Chain Channels: A New Solution for Micro-Payments and Offline Settlement

Beyond on-chain scaling, off-chain solutions are further improving the cost-efficiency of stablecoins. One prominent example is Bitcoin’s Lightning Network, which uses state channels to aggregate frequent payments off-chain—only triggering on-chain settlement upon opening or closing the channel. This significantly reduces per-transaction fees for high-frequency use cases.

In January 2025, Tether announced USDT integration with Bitcoin and its Lightning Network. This allows instant quoting and frequent micro-payments using USDT off-chain, with negligible costs incurred only during channel setup or closure. For small-value, high-frequency scenarios such as remittances and tips, Lightning channels can reduce fees to as low as 0.01% per transaction, with settlement times under 5 seconds. Tests show that a $5 USDT transfer via Lightning can cost just $0.0005, far below traditional card network fees of 2–3%.

Meanwhile, traditional payment giants are also exploring hybrid on-chain/off-chain settlement. In 2023, Visa expanded USDC settlement to the high-performance Solana chain, partnering with acquirers like Worldpay to enable 24/7 real-time clearing, reducing the need for costly pre-funding in cross-border wires.

These off-chain rails and integrated payment partnerships are laying the groundwork for widespread commercial use of stablecoins. Their cost-reduction effects have started to materialize in 2025—and are expected to accelerate.

The Cost of Pegging: How Stablecoin Design Shapes Operating Expenses

The mechanism by which a stablecoin maintains its peg directly impacts its cost structure and sustainability. Below, we break down the main reserve mechanisms currently in use and examine their respective trade-offs.

Algorithmic Stablecoins

Purely algorithmic stablecoins aim to maintain their peg through supply-demand algorithms, without backing from real collateral—theoretically achieving the lowest operating cost, since they have no reserve management expenses.

However, real-world failures—most notably the collapse of Terra UST—have exposed the fragility of such models. UST used a mint-and-burn mechanism tied to LUNA and offered unsustainably high yields (up to 20% APY), attracting speculative capital without real backing. When confidence waned, it triggered a death spiral, destroying tens of billions in market value.

Since Terra's collapse, purely algorithmic stablecoins have virtually disappeared, and surviving projects have shifted toward overcollateralization to maintain credibility. While these models eliminate reserve management costs, they carry enormous hidden risk costs—namely the cost of interventions during crises and the long-term damage from loss of trust. Regulatory authorities have taken note: the EU’s MiCA framework bans the issuance of stablecoins not backed by adequate reserves.

Conclusion: Lowest theoretical cost, but catastrophic real-world risk. Mostly obsolete post-UST.

Overcollateralized Stablecoins

Stablecoins like DAI are backed by crypto assets worth more than the stablecoins they issue. For example, minting 1 DAI might require $1.50 worth of ETH or other collateral.

This model has several cost drivers:

• Capital inefficiency: Excess collateral must be locked, which could otherwise earn yield elsewhere.

• Stability fees: Users minting DAI must pay interest, representing a usage cost.

• On-chain gas costs: Adjusting or liquidating positions consumes network resources.

That said, overcollateralized stablecoins are resilient. Projects like MakerDAO have learned from past volatility and diversified DAI's reserves to include real-world assets like U.S. Treasuries. These yield-generating assets allow Maker to offset operating expenses and even share interest via the DAI Savings Rate (DSR), which offered around 3% APY as of 2025. This effectively transforms user cost into passive income.

To reduce gas costs further, MakerDAO is exploring deployment on high-performance custom chains.

Conclusion: High capital costs but highly secure; sustainable via yield on reserves. Widely used in DeFi.

Fiat-Backed Stablecoins with Off-Chain Reserves

Stablecoins like USDT, USDC, and FDUSD are fully backed by fiat or equivalent assets held by custodians. Their operating costs resemble those in traditional finance:

• Custody fees (banks, trust companies)

• Auditing and compliance

• Legal and regulatory operations

However, end users typically bear none of these costs. Most fiat-backed stablecoins do not charge mint/redeem fees—for example, FDUSD offers 1:1 issuance and redemption at no fee on its platform, meaning users can move funds between on-chain and bank accounts without friction.

Because they are strictly 1:1 pegged, holders face no volatility or borrowing costs. In fact, as interest rates have risen globally, issuers of these stablecoins now earn substantial revenue on their reserve assets:

• Tether made $6.2 billion in net profit in 2023

• Estimated to reach $13.7 billion in 2024

This means issuers have ample capital to cover operating expenses, reinvest in infrastructure, and improve transparency—boosting long-term sustainability. It has also motivated tighter regulation, with 2025 seeing a wave of stablecoin licensing and reserve disclosure laws across major jurisdictions.

Conclusion: Moderate traditional costs, but highly scalable and profit-generating in a high-rate environment. The dominant design for consumer and institutional use.

Sectoral Adoption: How Stablecoins Unlock Cost Efficiencies Across Industries

As infrastructure matures and network structures evolve, stablecoins are transitioning from DeFi-native use cases into real-world business scenarios. Below is a breakdown of how stablecoins are being applied across key industries, with an emphasis on cost reduction and operational efficiency.

1. Web3 and Crypto-Native Businesses

In blockchain-native ecosystems, stablecoins serve as the lifeblood of the economy. Centralized exchanges, DeFi protocols, and NFT marketplaces all rely on USD-pegged stablecoins like USDT and USDC for pricing and settlement to shield users from crypto price volatility.Use cases include:

• Participating in DeFi lending/farming with stable assets

• Trading pairs across CEXs and DEXs

• Treasury and payroll in stable denomination

Data shows that stablecoins account for ~80% of crypto trading volume, underscoring their dominance. Their instant, 24/7 transferability enables faster capital rotation across global platforms, improving investment velocity and time-to-market.

A recent report noted that cross-border transfer costs via stablecoins are as low as a few basis points, compared to 6%+ using traditional rails—a near-zero-cost value transmission.

2. Cross-Border E-commerce and DTC Sellers

For exporters and cross-border e-commerce merchants, stablecoins offer a breakthrough in:

• Lower payment processing fees (down 65% in some cases)

• Faster settlement cycles (instant vs. T+2 or more)

• Zero chargeback risk

Example: A seller receiving a $200 payment via USDT from a U.S. buyer pays less than $0.01 in fees, compared to $12+ via credit card or wire transfer, with funds received in seconds.

For merchants, this means better cash flow, less capital trapped in transit, and lower dependency on third-party gateways. In high-risk sectors like digital goods, the non-reversible nature of stablecoin payments eliminates refund fraud.

Moreover, in underbanked regions or countries with FX restrictions, stablecoin payments enable new customer segments who lack access to card networks. Stripe has found that stablecoin users are 2x more likely to be net-new customers.

3. Digital Products and SaaS Subscriptions

Platforms selling digital content (plugins, courses) or SaaS services benefit from:

• Lower platform fees (avoiding Apple IAP, PayPal take rates)

• Frictionless global billing

• Real-time access provisioning

Stablecoins allow direct payouts to creators, retain more revenue, and support micropayments (e.g., $5 subscriptions with <$0.01 fees). They also support USD-denominated pricing globally, avoiding FX conversion and simplifying accounting.

Automated access and smart contract-based fulfillment enhance customer experience and reduce reconciliation and support costs.

4. Online Education and Knowledge Platforms

Cross-border education services face high remittance fees (~6.35% average for $200). Stablecoins cut this to 0.5%–1.5%, making international learning more affordable.

• Tutors receive real-time payments with zero remittance delay

• Schools get faster capital turnover for reinvestment

• Students in underbanked countries can enroll by converting local currency to USDT/USDC via OTC or P2P markets

Institutions like Bentley University in the U.S. now accept stablecoin tuition payments in partnership with Coinbase.

5. Freelance and Global Service Platforms

Platforms for global freelance services and contract-based work leverage stablecoins for:

• Instant payouts upon task completion

• Elimination of weekend/holiday banking delays

• Lower remittance fees vs. PayPal, SWIFT

This benefits remote teams and digital nomads who no longer depend on local banking infrastructure. One media agency reported monthly payouts to 50+ influencers across countries via batch stablecoin transfers—zero delay, near-zero fees.

No bank fees, no FX slippage, and enhanced privacy make this model popular among creators and micro-agencies.

6. Affiliate Marketing and Ad Networks

Affiliate programs and ad agencies often need to distribute small payments to thousands of global partners. Traditional payouts suffer from:

• 5–10% in fees

• 3–7 day delays

• High minimums

With stablecoins (often USDT on Tron or L2), these are reduced to $0.01 per payout, completed in minutes. Some networks now batch commission payments weekly via smart contracts.

More than 30% of affiliate programs in tech verticals now support crypto payments, mostly stablecoins—driven by their programmability, transparency, and low friction.

7. Cross-Border Logistics and Supply Chains

Stablecoins are transforming trade finance and supplier payments:

• Replacing complex multi-party correspondent banking chains

• Reducing intermediary fees and delays

• Accelerating customs clearance via instant payments

Example: A Mexican factory paying a Vietnamese supplier typically goes through 4–5 bank layers. With stablecoins, funds are sent P2P in minutes. Estimated cost savings: 90%+ on cross-border payment fees.

Stablecoins also enable FX stability in volatile markets—helping both suppliers and buyers hedge local currency risk.

In logistics, real-time fund settlement speeds up goods release and reduces storage and interest costs. For supply chain finance, predictable capital flows help optimize working capital.

Faster Circulation and ROI: Optimizing Cash Flow and Return on Capital

Across the industries explored above, the widespread adoption of stablecoins is primarily driven by their ability to accelerate capital turnover and minimize transaction costs—two factors that directly improve ROI (Return on Investment) and financial efficiency.

T+0 Real-Time Settlement Unlocks Cash Flow

Stablecoins operate on public blockchains that support T+0 real-time settlement, compared to T+2 to T+5 days in traditional finance. This drastically reduces the idle time of working capital and enables businesses to redeploy funds immediately.

This benefit is particularly critical for capital-intensive operations. Even a 1–2 day reduction in settlement time can increase the number of capital turnover cycles per year—amplifying profit margins.

Reports show that instant settlements with stablecoins reduce merchant working capital requirements, easing cash flow pressure and increasing operating agility.

Lower Transaction Fees = Higher Margins

Stablecoin payments cut costs to a fraction of what traditional systems charge. This directly increases net revenue per transaction.

Take a cross-border e-commerce business with $10 million in annual sales—if half of this volume migrates to stablecoins and saves 2% in fees, that’s a $100,000–$200,000 annual gain, effectively boosting bottom-line profit or creating room for competitive pricing.

While there may be initial integration costs (e.g., wallet setup, employee training), for high-frequency or cross-border businesses, the long-term savings vastly outweigh the upfront investment. Some platforms recoup their implementation cost within the first year, with ROI rising as usage scales.

Hidden Efficiency Gains Beyond Numbers

Beyond measurable cost savings, stablecoins also introduce intangible efficiencies:

• No intermediary conversions, reducing manual reconciliation and error rates

• Programmable transparency, enabling automated risk controls and treasury audits

• Always-on availability, removing time zone and banking-hour constraints

These improvements compound over time, manifesting in stronger business resilience and faster growth.

Conclusion: Stablecoins as a Cost-Efficiency Engine for Global Business

Stablecoins are no longer just a crypto-native tool. Across industries—from e-commerce and digital media to professional services and supply chains—they are rapidly proving their value as an operational asset.

Their key advantages—real-time speed, low cost, and global compatibility—not only improve existing cost structures but also enable companies to scale globally with reduced friction.

While challenges around compliance, security, and currency conversion still require thoughtful management, the trajectory is clear: Stablecoins are becoming essential infrastructure for modern business finance.

As regulation evolves and adoption grows, we are witnessing the emergence of a new capital efficiency layer, where stablecoins play a foundational role in cross-border payments, real-time settlement, and programmable finance.

Businesses that embrace this change early will enjoy higher margins, faster cash flows, and a strategic advantage in a rapidly globalizing digital economy.