What Are FinTechs Doing With Crypto? Mostly Stablecoins, Financial Services

The relationship between traditional finance and cryptocurrency has, for years, been uneasy at best.

But when it comes to FinTech companies, it’s been an entirely different story. Many of the leading platforms have embraced blockchain products, positioning them at the center of their offerings. The crypto products they are embracing and integrating? Stablecoins and financial services tend to top the list.

Take for example Stripe’s latest shareholder letter, which includes an entire section on stablecoins as “room temperature superconductors for financial services.”

“The top stablecoin use cases today involve tangible, real-world activity. CFOs use stablecoins to manage corporate treasury, immigrants use them for remittance, citizens of countries with unstable currencies use them for dependable savings, and payments teams use them to enable customers from countries with low card penetration,” the FinTech platform wrote.

While banks operate under a rigid and highly scrutinized regulatory environment, making any foray into crypto inherently complex, for FinTech firms, the regulatory burden is less onerous. Many operate under money transmitter licenses (MTLs) rather than full banking charters, allowing them to offer crypto services with fewer capital and compliance constraints.

In contrast, banks must contend with various capital requirements, which discourage high-volatility assets like cryptocurrencies from being held on balance sheets. This disparity can give FinTechs a significant edge in developing crypto-based payments solutions without the same level of regulatory friction or charter requirements.

Read more: Visa, PayPal and Others Could Bring Utility and Legitimacy to Stablecoins

Despite the increasing institutionalization of digital assets, banks remain largely on the sidelines, while FinTech firms increasingly are charging ahead with crypto offerings.

The reason lies at the intersection of regulation, risk appetite and structural agility. FinTechs, unburdened by the strictures of traditional banking charters, are leveraging their regulatory flexibility, customer demand and technological prowess to push forward. Meanwhile, banks, which must follow compliance requirements and conservative risk frameworks, are moving cautiously — if at all — into the crypto space.

Still, some firms, like Block (formerly Square), have taken a hybrid approach, securing both MTLs and state banking charters to bridge the gap between traditional and digital finance. This approach allows them to process cryptocurrency transactions, provide custody services, and facilitate stablecoin payments with greater agility than banks.

Even newer FinTech entrants like Revolut and Robinhood have expanded their cryptocurrency offerings to stay competitive, while Klarna is set to “embrace crypto” and is asking crypto fans to share ideas of how it can do so.

Another factor fueling FinTechs’ crypto adoption is regulatory arbitrage. Unlike banks, which must adhere to stringent national banking laws, FinTech firms can establish operations in jurisdictions with more crypto-friendly regulations. Countries like Switzerland, Singapore and Malta have actively encouraged digital asset innovation, attracting FinTechs seeking regulatory clarity and favorable operating conditions.

Some U.S.-based cryptocurrency firms, such as Coinbase and Circle, have pursued global regulatory strategies to maintain a foothold in crypto while navigating domestic restrictions.

Read more: The Payment Professional’s Guide to Stablecoins

What are FinTechs doing with their cryptocurrency offerings? Per Stripe’s shareholder letter, SpaceX uses Bridge to repatriate funds from Starlink sales in Argentina, Nigeria and other markets. DolarApp, a neobank in Mexico, uses Bridge to help individuals receive USD payments from payroll providers like Deel. Airtm uses Bridge to disburse payments to workers all over Latin America.

On Wednesday (March 5), BVNK launched what it calls the first embedded wallet unifying fiat and stablecoins globally.

Beyond stablecoin payments, financial services are also being brought into the mix. Last week (Feb. 26), Ondo Finance announced it will be the first provider to bring real-world assets to Mastercard’s Multi-Token Network (MTN). Ondo said its short-term U.S. government treasury fund (OUSG) — the first tokenized real-world asset (RWA) on the Mastercard network — will let businesses earn daily yield via tokenized assets with 24/7 subscriptions and redemptions, with no need for stablecoins onramps or settlement windows.

Also last week (Feb. 27), Flexa added tap-to-pay support to its digital currency acceptance platform, enabling users to pay with crypto at retail locations using NFC-enabled hardware wallets.

PYMNTS also covered last month (Feb. 14) how sports betting and iGaming platform DraftKings has expressed interest in offering crypto payments and payouts, once the regulatory environment becomes clearer.

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