When DeFi Meets Wall Street: Are Stablecoins Becoming Financial Infrastructure Rather Than Crypto Assets?

Stablecoins are moving beyond their original role as convenient trading tools for cryptocurrency markets. Regulators, banks and payment companies increasingly view them as potential infrastructure for moving and settling money. On August 17, 2026, the U.S. Department of the Treasury proposed rules for implementing key parts of the GENIUS Act, which establishes a federal framework for payment stablecoin issuers. The law is expected to take effect in January 2027.

The shift is also visible outside the United States. Anchorpoint Financial, a venture backed by Standard Chartered, HKT and Animoca Brands, began rolling out HKDAP in Hong Kong in August. The Hong Kong dollar-backed stablecoin initially targets institutional distributors and professional investors. Its planned uses include cross-border payments and settlement involving tokenized real-world assets, reports from Reuters and Standard Chartered show.

What Changes When a Stablecoin Becomes Payment Infrastructure?

A stablecoin is a blockchain-based token designed to maintain a relatively steady value, usually by linking it to a currency such as the U.S. dollar. Regulated versions typically depend on reserves held by an issuer. The International Monetary Fund notes that their ability to remain redeemable at par depends partly on reserve quality, liquidity and the issuer’s operational strength.

Within DeFi, stablecoins serve as trading pairs, collateral and assets used in lending protocols. Payments create a different role. They can move value between businesses or countries without relying on every stage of conventional correspondent banking. Stablecoin payment activity remains small compared with the global payments system, but the IMF, citing BIS estimates, reported about $390 billion in payment-related stablecoin flows during 2025.

Trading Token or Settlement Asset?

The distinction becomes clearer with tokenized securities. If a bond, fund or other asset exists on a blockchain, investors also need a reliable form of money for settlement. Stablecoins could provide that cash leg, potentially enabling automated or near-simultaneous exchanges. The IMF says tokenization may reduce reconciliation costs and support programmable and atomic settlement.

That creates competition. Banks can issue tokenized deposits, while central banks can provide digital settlement money. Bank for International Settlements General Manager Pablo Hernández de Cos recently argued that tokenized bank deposits may be better suited to large-scale everyday payments, citing concerns about stablecoin interoperability, financial stability and monetary sovereignty.

Can Regulated Stablecoins Still Be DeFi?

Here lies the central tension. DeFi developed around open networks and reduced dependence on traditional intermediaries. Yet regulated stablecoins increasingly involve licensed issuers, reserve custodians, customer identification and financial-crime controls. A joint U.S. regulatory proposal would treat permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act and require customer identification programs.

The result may be a hybrid system. Blockchain networks could supply programmable settlement and round-the-clock transfer capabilities, while banks and regulated companies provide the trusted money circulating across them. Stablecoins may therefore bring Wall Street onto blockchain infrastructure. The reverse is equally possible. As licensing, compliance and institutional control expand, important parts of DeFi could gradually start looking much more like traditional banking.