Fireblocks, a leading crypto infrastructure provider valued at $8 billion, has recently launched a stablecoin payment network that has garnered significant interest from over 40 institutional participants. This new network, known as the Fireblocks Network for Payments, boasts a diverse range of members including Bridge (recently acquired by Stripe), stablecoin companies Zerohash and Yellow Card, as well as issuer Circle.
The primary goal of the Fireblocks Network for Payments is to revolutionize the way financial institutions and crypto firms transfer stablecoins amongst each other. CEO Michael Shaulov has highlighted the costly infrastructure challenges that many face in this process, and the network aims to streamline these operations while also paving the way for the development of new stablecoin products.
One key feature that sets Fireblocks’ platform apart is its support for multiple stablecoins, offering participants increased operational flexibility compared to Circle’s existing payments network, which focuses exclusively on USDC. By providing users with access to banking relationships and regulatory licenses from a wide range of companies, Fireblocks is able to offer a more comprehensive and efficient solution to the challenges of stablecoin transactions.
While Fireblocks already processes billions of dollars in stablecoin volume daily, CEO Michael Shaulov acknowledged that the company’s original network was primarily designed for crypto trading rather than specialized stablecoin operations. The introduction of the new network addresses this operational gap by enabling seamless conversion between different stablecoins and facilitating cross-border transfers.
This recent launch is part of Fireblocks’ broader expansion into stablecoin-focused infrastructure, following its integration with Codex in June. Codex, a purpose-built blockchain for stablecoin finance, offers instant settlement capabilities and simplifies the process of creating wallets for institutions with zero additional integration work required.
In collaboration with Japan’s SMBC and Ava Labs, Fireblocks is also set to pilot stablecoin launches, with trials expected to commence in the second half of 2025. If successful, SMBC could potentially launch its stablecoin as early as next year, offering a cost-effective alternative for cross-border payments by bypassing traditional SWIFT intermediaries.
The launch of the Fireblocks Network for Payments comes at a time of rapid institutional adoption within the stablecoin ecosystem. A survey conducted by Fireblocks in May revealed that 90% of financial institutions are either actively using or exploring stablecoin integration into their operations. Corporate giants such as Amazon and Walmart are also reportedly considering the development of their own USD-backed stablecoins to reduce transaction fees.
Payment processor Stripe is another major player in the stablecoin space, with plans to launch a dollar-backed stablecoin for markets outside the U.S., UK, and Europe. The total stablecoin market capitalization currently stands at approximately $285 billion, reflecting a 56% year-over-year growth, according to DefiLlama data.
Despite the rapid growth of the stablecoin market, traditional banking institutions have raised concerns about the potential systemic risks associated with stablecoin adoption. Citigroup executive Ronit Ghose warned that stablecoin interest payments could trigger a deposit flight similar to the crisis of the 1980s, when money market funds drained $32 billion from banks in just two years.
In response to these concerns, major banking groups, including the American Bankers Association, are lobbying Congress to close what they perceive as a “loophole” in the GENIUS Act that allows crypto exchanges to offer yields on third-party stablecoins. Former People’s Bank of China Governor Zhou Xiaochuan has also cautioned about the aggressive expansion of stablecoin issuers without a full understanding of systemic risks.
Despite these challenges, Treasury Secretary Scott Bessent has expressed support for stablecoin adoption, emphasizing the potential for digital dollars to expand global access to the U.S. dollar and drive demand for U.S. Treasuries as backing assets.
Overall, the launch of the Fireblocks Network for Payments marks a significant milestone in the evolution of the stablecoin ecosystem, as institutional adoption accelerates and new infrastructure solutions emerge to address the industry’s evolving needs. With the total stablecoin market capitalization projected to reach $1 trillion in annual payment volume by 2028, the future of stablecoins appears poised for continued growth and innovation.