Stablecoins: Innovation, Sovereignty, and Regulatory Battle

Alejandro Martínez · 2026-04-22

Stablecoins are quickly becoming the backbone of digital finance. But who gets to set the rules for tomorrow's digital money? That's the big question. This panel at FinTech R:Evolution explored the tension between the speed of American players and Europe's regulatory framework, shaped by MiCA and the digital euro. The stakes are high, covering strategic challenges, extraterritorial risks, and the competitive dance between financial institutions and global private giants. We've got the key takeaways from the panel "Stablecoins: Bridging the Gap Between Forecasts and Reality," featuring Stephanie Cabossioras (Chief Strategy and Global Policy Officer, SG Forge), Nadia Filali (Head of Innovation & Business Development, Groupe Caisse des Depots), Thomas Jeulin (Head of EMEA Sales and Head of Liquidity Provisions, Flowdesk), and moderated by Hubert de Vauplane (Partner, Morgan Lewis). ### A. Stablecoins as the Core of Digital Markets Are stablecoin transaction volumes real, or are they inflated by double-counting? Recent reports from Visa and BCG suggest that the $33 billion in stablecoins circulating in 2025 are mostly used for crypto trading, not actual payments. Flowdesk, a major stablecoin infrastructure provider, points out that volume inflation comes from decentralized finance mechanics. When an asset trades on platform A and settles on platform B, the same transaction can get counted multiple times. Add in MEV (Maximum Extractable Value) strategies, where players optimize execution timing between blocks, and you get artificially high volumes. But these distortions don't undermine the infrastructure's value. About 75% of DeFi transactions involve stablecoins, making them a central cog in the ecosystem, measurement flaws aside. SG Forge, one of the few global banks issuing regulated euro and dollar stablecoins under MiCA, adds a geopolitical twist. The dollar's dominance in stablecoin markets isn't accidental. Nearly all trading pairs are in USD, which mechanically drives volume toward dollar stablecoins like USDC. This bias amplifies dollar volumes without necessarily reflecting economic preference. Euro markets, though less visible, are growing on a separate, complementary path. ### B. Three Use Cases, Three Timelines Three main use cases are emerging, each with its own maturity horizon. - **Trading on crypto platforms.** Stablecoins act as reserve currency within crypto markets, letting traders stay exposed without returning to traditional banking. This is the dominant use case today. - **Global payments around the clock.** Caisse des Depots explains how stablecoins let multinationals make intra-group payments without banking hour restrictions or settlement delays. For a company managing billions in cash across multiple time zones, the ability to transact continuously, even on weekends, is a huge operational advantage. This use case is already common in emerging markets. - **Market infrastructure and settlement.** The third use case involves using stablecoins for institutional settlement and liquidity management. This is still in early stages but holds significant potential for reducing friction in traditional finance. ### C. The Regulatory Chessboard The regulatory landscape is complex. MiCA provides a clear framework in Europe, but the U.S. is moving faster with a more permissive approach. This creates a strategic dilemma for global players. Do you follow European rules, which offer legal certainty but slower innovation, or U.S. rules, which prioritize speed but carry regulatory risk? The panelists agreed that cooperation is essential, but competition is inevitable. One key insight: the battle isn't just between regions. It's also between traditional financial institutions and tech giants. Banks are adapting, but they're wary of being disintermediated. Meanwhile, big tech companies are eyeing stablecoins as a way to bypass traditional payment systems entirely. ### D. What This Means for You If you're a professional in European payments or EU payment systems, this matters. The choice between innovation and regulation isn't academic. It affects how you build products, manage risk, and compete globally. The rise of stablecoins means faster, cheaper cross-border payments, but it also means navigating a fragmented regulatory environment. For U.S. professionals, the message is clear: Europe is setting rules that could become global standards. Pay attention to MiCA and the digital euro, because they'll shape the infrastructure you use tomorrow. ### Key Takeaways - Stablecoins are central to DeFi, with 75% of transactions involving them. - Volume inflation exists but doesn't negate their utility. - Dollar dominance is structural, not necessarily economic. - Three use cases: trading, payments, and institutional settlement. - Regulatory divergence between U.S. and Europe creates both risks and opportunities. - Cooperation between banks and tech firms is crucial, but competition is fierce. The panel made one thing clear: stablecoins are here to stay. The question is who will control the narrative and the rules. Stay tuned.