By Ray Birch
ST. PETERSBURG, Fla.--In 2025, stablecoins have officially outgrown their reputation as speculative crypto assets. No longer the domain of blockchain enthusiasts alone, these digital tokens—backed one-to-one by real-world assets like U.S. Treasury securities—are becoming foundational to how money moves in the modern economy.
And while mega banks, fintech giants, and retail titans rush to build their stake in this evolving ecosystem, credit unions stand at a pivotal crossroads.
The Senate passage of the GENIUS Act has given stablecoins a long-awaited legal framework. While the bill itself is groundbreaking, what matters most for credit unions is what comes next: a transformed payments landscape, where digital dollars flow in real-time, across borders, wallets, and platforms, explains Vladimir Jovanovic, vice president of Innovation at Velera.
“Whether credit unions are ready or not, stablecoins are here—and they’re reshaping expectations for speed, cost, and access in financial services,” he said.
“For credit unions, this legislation creates both an opportunity and a new set of expectations. Credit unions may be able to issue stablecoins or partner with compliant issuers in ways that improve member experiences and lower transaction costs. However, it will also require technical integration, due diligence and operational agility to ensure compliance with evolving standards,” Jovanovic said,
Major Financial And Retail Players Are Getting Involved
Major banks are no longer in the testing phase—they are deploying stablecoin-related products at scale. JPMorgan’s JPM Coin, built on the bank’s Onyx platform, is facilitating real-time institutional payments and liquidity transfers across its corporate client base today. JPMC also recently announced tokenized deposits for institutional clients, while Citibank is exploring how tokenized deposits and stablecoins can enhance treasury management. Other global players, including Goldman Sachs, HSBC and BNY Mellon, are rapidly building out custody solutions and exploring how tokenized money can modernize internal settlement processes, Jovanovic explained.
Meanwhile, mega retailers are entering the space with quiet but strategic force.
Walmart, through its fintech arm Hazel by One, is exploring the creation of a proprietary stablecoin that would enable customers to make seamless payments, receive instant change in digital dollars and accumulate loyalty rewards within its ecosystem. This move would give Walmart more control over payment processing and allow it to reduce reliance on card payments and networks, significantly lowering interchange fees in the process and lowering merchant processing costs, Jovanovic said.
Amazon is also signaling intent, having filed multiple patents for blockchain-based payment methods, smart wallets and tokenized checkout flows.
“While no public stablecoin has yet launched, Amazon is reportedly developing infrastructure that could power internal seller settlements, cross-border payouts and real-time, programmable commerce,” Jovanovic explained. “Such a move would further tighten Amazon’s grip on the e-commerce ecosystem by owning not just the transaction, but the money movement itself.”
On the Big Tech side, PayPal has taken the most aggressive position, launching its USD-backed stablecoin PYUSD in 2023.
“It is now fully integrated into PayPal and Venmo, allowing users to send, receive and convert stablecoins within the apps. It also supports blockchain transfers, meaning users can move PYUSD to Ethereum wallets for broader use in the crypto ecosystem, such as crypto trading, for example,” Jovanovic said.
PayPal has referred to stablecoins as foundational to its future and is exploring ways to integrate PYUSD into its merchant settlements, loyalty programs, etc.
“This would signal PayPal’s transformation from digital wallet and payment processor to digital money issuer and set a precedent for how fintechs could function as quasi-banks in the future,” Jovanovic said. “We continue to see venture capital funds moving into the stablecoin space, further funding stablecoin-related projects. With the passage of the GENIUS Act, we should see this trend accelerating in the coming months and years.”
What’s In It For Credit Unions?
For credit unions, the rise of stablecoins is not just a threat—it should be a catalyst for them to embrace strategic partnerships and innovation surrounding stablecoin opportunities and ecosystems, Jovanovic said.
“These institutions can become trusted access points for stablecoins by enabling accountholders to seamlessly convert between fiat and digital dollars,” he explained. “By integrating stablecoin payments into their offerings, particularly for cross-border use cases, credit unions can offer faster and more affordable alternatives to wire transfers.”
Beyond payments, CUs can partner with fintechs to provide custody and wallet services, especially for members interested in managing digital assets alongside traditional accounts with the institution.
“As infrastructure matures, credit unions and their partners could even participate in interbank stablecoin settlements to improve liquidity management and reduce friction across correspondent banking relationships,” Jovanovic noted.
Jovanovic said the GENIUS Act could further enable these possibilities by creating regulatory clarity and providing credit unions with a clearer path to participation through a long-term regulatory framework.
“While credit unions may not issue their own stablecoins immediately, they have an opportunity now to collaborate with strategic partners and licensed issuers and find niche stablecoin use cases that add value to their institutions and their members,” he said.
Challenges and Cautions
With opportunity comes responsibility, emphasized Jovanovic.
“Credit unions must stay informed as regulatory frameworks evolve and ensure any partnership with stablecoin providers meets federal standards for reserve backing, audits and cybersecurity,” he said. “Many existing core systems are not yet compatible with blockchain-based solutions, so technology readiness and API integrations will be essential to keep in the foreground of any exploration or partnerships.”
Education will also be a crucial piece, Jovanovic said.
“Many consumers do not understand the difference between stablecoins and volatile cryptocurrencies. Credit unions have an opportunity to be the trusted partner to their members and communicate clearly about risks, protections and the benefits of using stablecoins—especially as part of a broader digital financial toolkit,” he said.
Where The Market Is Headed
Over the next two to three years, Jovanovic said Velera expects the stablecoin market to expand significantly, especially in the U.S., if the GENIUS Act becomes law.
“Regulated stablecoins are likely to outpace their volatile competitors, and more mainstream platforms will eventually move to adopt stablecoins for payments and settlements,” he explained. “Mega retailers like Amazon and Walmart may launch their own digital tokens in attempts to transform retail checkout into a fully digital experience.”
Cross-border payments and B2B settlements will be major areas of growth, as stablecoins eliminate delays and costs associated with traditional wire systems. Tokenized assets—ranging from real estate to government bonds—will increasingly rely on stablecoins as accounting and settlement mechanisms. And even as central banks continue to explore digital currencies, stablecoins will remain the innovation layer driving programmable real-time financial services, Jovanovic asserted.
“Stablecoins have evolved from crypto side projects into potential core elements of the future financial system,” concluded Jovanovic. “With mega banks, fintechs and global retailers all starting to evaluate and test infrastructure around stablecoins, and U.S. legislation like the GENIUS Act creating a clear legal path, the landscape is changing fast.
“For credit unions, now is the time to experiment, partner and prepare,” Jovanovic continued. “Whether thinking about offering secure on or off-ramps, exploring stablecoin-based payments or participating in tokenized markets, credit unions have a unique opportunity to serve their members in new, digital-first ways without losing the trust and human touch that defines them.”
Key Takeaways For Credit Union Leaders:
- Start Exploring Use Cases: Payments, cross-border remittances, and liquidity management are immediate opportunities.
- Build Strategic Partnerships: Leverage fintechs and licensed stablecoin issuers rather than going it alone.
- Upgrade Core Systems: Ensure the CU’s tech stack can support blockchain-based integrations and API-ready infrastructures.
- Prioritize Member Education: Position the institution as a trustworthy guide in the digital money space.
- Stay Ahead of Compliance: Monitor federal standards closely and align partnerships to reserve, audit, and cybersecurity expectations.