Palo Alto – March 12, 2025 – M&A and financings in stablecoin infrastructure, digital payments and embedded finance are expected to boom in 2025-2026. Looking at opportunities in the space for your company – investment, partnerships or acquisitions?

Woodside Capital Partners are Silicon Valley-based experts in M&A and financings in the stablecoin space – let’s put a Zoom meet on the calendar to discuss. Please suggest a few times that work for you or feel free to block one here: https://calendly.com/nirvikar-meet.

Stablecoins are rapidly gaining momentum, with record-breaking transaction volumes and increasing adoption across financial services. At a recent event hosted by BVNK in San Francisco, discussions centered around the evolving stablecoin infrastructure, market challenges, and the future of digital payments.

Key Trends Shaping the Stablecoin Landscape

🔹 Stablecoin Adoption is Accelerating – Despite regulatory uncertainty and skepticism from some traditional players, stablecoins are increasingly being integrated into fintech platforms, payment networks, and cross-border settlements. Leading fintechs and neobanks are already incorporating stablecoins into their business models, recognizing their potential for faster, cheaper, and borderless transactions.

🔹 Infrastructure Players Are Best Positioned to Win – The stablecoin ecosystem comprises issuers, exchanges, infrastructure providers, and applications, but where does the value accrue? While applications and front-end fintechs struggle to find sustainable business models, the core infrastructure providers—those facilitating issuance, settlement, and compliance—are emerging as the key beneficiaries. This will realign as the ecosystem matures.

🔹 Interoperability Challenges Remain – One of the biggest hurdles for stablecoin adoption is interoperability with traditional financial systems. The ability to seamlessly bridge stablecoins with SWIFT, banking systems, and global payment networks is still in its early stages. Players who can solve this problem could become the backbone of the digital asset payments ecosystem.

🔹 The Future of Payments on Chain – Many are comparing the current state of stablecoins to cloud computing’s early days, where initial skepticism gave way to widespread enterprise adoption. Forecasts suggest stablecoins could grow from 3% of global transactions today to 20% by 2030, translating into a $60 trillion market.

🔹 AI & Stablecoins – A Natural Convergence? – Artificial intelligence is expected to play a role in automating compliance, optimizing transaction routing, and enhancing fraud detection in the stablecoin space. However, distribution and regulatory uncertainty remain key challenges that could impact adoption.

Strategic Considerations for Financial Institutions & Investors

As stablecoins become more embedded in global payments, remittances, and treasury operations, financial institutions must assess:

• Where will value be created and captured? The ability to monetize stablecoins will be a key determinant of success.
• How will regulatory landscapes evolve? Compliance remains a moving target, with multiple jurisdictions imposing different requirements.
• What strategic partnerships should be explored? Fintechs, banks, and infrastructure providers need to align their roadmaps for seamless integration.

Best regards,
Nirvikar Jain
Managing Director, Fintech Lead
Woodside Capital Partners