What Can Stablecoins Be Used For? How They Power the Modern Digital Economy

Stablecoins, a type of cryptocurrency that is designed to maintain a stable value by being pegged to a traditional asset like the US dollar, are rapidly becoming the backbone of the digital economy. Originally designed to solve volatility in crypto markets, stablecoins have evolved far beyond their initial scope.

Stablecoins are currently being utilized for everything from global remittances to complex DeFi activities. In this guide, we’ll break down the ways that individuals, developers, and businesses are already using them today.

Remittances and Sending Funds Globally

In a world where traditional remittance services can charge up to 10% in fees and take days to deliver funds, stablecoins are a game-changer. They allow payments to be made in seconds, not days. And transaction costs on certain blockchains only cost a few cents.

Additionally, recipients and senders don’t need to own a bank account to move money. Specifically in unstable economies where local currencies are volatile or hard to access, stablecoins are providing an efficient alternative for sending funds to friends and family.

Stablecoins also bring transparency and traceability to peer-to-peer payments, which is especially valuable for aid organizations or community fundraisers. Unlike cash-based systems, senders can verify when and where funds are received, and recipients can hold value in a more stable currency.

Payroll and Contractor Payments

Companies are increasingly paying employees, freelancers, and contractors in stablecoins for speed, transparency, and global compatibility. Additionally, recipients in certain nations are keeping these funds in stablecoins to avoid currency devaluation.

The result is a range of benefits, including:

• Global reach: You can pay anyone in the world without needing access to traditional banking infrastructure or international wire systems.
• No currency conversion: Avoid conversion delays and fees by paying in a currency that holds its value across borders.
• Programmability: Smart contracts can be set up to automate recurring payments, vesting schedules, or real-time salary streaming.
• Fast settlement times: Payments settle in minutes, not days, allowing for immediate access to funds and better cash flow for recipients.
• Low cost: Stablecoin payments avoid traditional payment fees, such as wire transfer charges or intermediary banking costs.
  
  

Yield Generation and Liquidity Provision in DeFi

Stablecoins play an essential role in the world of decentralized finance (DeFi). In addition to maintaining a stable value, crypto users integrate them into many onchain workflows and protocols.

Here are some of the primary ways users put stablecoins to work in DeFi:

• Earn yield by supplying stablecoins to lending platforms like Aave
• Provide liquidity on decentralized exchanges (DEXs) like Uniswap
• Get exposure to tokenized real-world assets
• Deposit them into borrowing platforms or other protocols to unlock additional leverage or utility
• Participate in automated yield aggregators, which optimize returns by moving stablecoins across different protocols
• Access stable trading pairs, enabling users to trade in and out of positions without being forced to go through volatile base tokens like ETH
  
  

Collateral for Borrowing

Stablecoins are a powerful tool for unlocking liquidity without the need to sell existing assets. In borrowing and lending markets across DeFi, users can deposit stablecoins as collateral to take out loans in other tokens, or borrow stablecoins against their volatile assets. This model gives users flexibility to access capital while still maintaining exposure to the upside of assets they believe in (such as ETH or SOL).

Protocols like MakerDAO have pioneered overcollateralized systems that use stablecoins as the backbone for onchain borrowing. Meanwhile, traders and builders often use stablecoins to back margin accounts, fund leveraged strategies, or bridge short-term cash flow gaps without terminating their positions. It’s a practical and increasingly popular way to stay invested while tapping into liquidity for spending, reinvesting, or deploying elsewhere in the DeFi ecosystem.

Off-Ramping: Convert Crypto to Fiat and Move It to a Bank Account

One of the most common stablecoin use cases is as a bridge between crypto and traditional banking systems. While stablecoins offer a simple and efficient way to receive funds, many recipients want to get these funds into their bank accounts upon receipt. Luckily, converting them to local currency is often just as simple.

Off-ramp options vary by region, giving users different ways to convert stablecoins to local currency. Funds can be moved to a centralized exchange like Coinbase or Binance and withdrawn to a linked bank account. There are also off-ramp providers like MoonPay or Coinbase Pay that allow for direct transfers from wallets.

In some regions, users can off-ramp through peer-to-peer marketplaces that match buyers and sellers locally, or use crypto ATMs to withdraw cash directly. Local fintech platforms and aggregators are also emerging to streamline off-ramping, especially in markets with limited banking access. Stablecoins give users the best of both worlds: the speed, openness, and flexibility of crypto, along with the ability to cash out easily when needed.

Send to Wallets or Exchanges Instantly

Like other cryptocurrencies, stablecoins are ideal for transferring value across wallets, exchanges, and chains. Transfers often cost just a few cents and arrive globally within seconds.

Whether you’re:

• Sending money to friends or family
• Depositing funds to a centralized exchange to trade or off-ramp
• Bridging between blockchains like Ethereum to Solana
• Or paying for goods and services using digital dollars

In all of these scenarios, stablecoins act as a reliable way to hold and move value across the crypto ecosystem. They are fast, affordable, and work across both centralized and decentralized platforms. This makes them a practical tool for everyday use and global access.
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Spend with Crypto Debit Cards

Stablecoins are beginning to make their way into the real world too. One emerging use case is stablecoin-powered debit cards, which let users tap into their crypto balances for everyday purchases. Platforms like Rain make this possible by bridging stablecoins with existing payment rails.

The process is simple:

1. Load your card with stablecoins
2. Spend them at any retailer that accepts Visa or Mastercard
3. Receive cashback or crypto rewards

By converting stablecoins into spendable balances at the point of sale, Rain and similar platforms give users a simple way to use digital dollars in the real world. Whether they’re buying groceries, booking travel, or shopping online, it makes spending with crypto feel familiar.