In an era where the global economy is increasingly interconnected, cross-border financial transactions serve as an important mechanism for a diverse range of stakeholders—from large-scale businesses and small-scale ecommerce vendors to remote workers (or “digital nomads”) and Thai nationals working abroad. One of the fintech innovations for Thai investors and entrepreneurs to consider is stablecoins, which stand out for their speed, low transaction fees, and value stability compared to other cryptocurrencies. Stablecoins are currently reshaping the dynamics of international payments.

In this article, we’ll get to know what stablecoins are and which ones are popular in the cryptocurrency market. We’ll highlight the key benefits of stablecoins—including examples of using stablecoins in cross-border transactions—and introduce stablecoin-powered solutions that facilitate global connectivity of Thai financial transactions, thereby enhancing the modernity and competitiveness of Thai businesses.

What’s in this article?

• What is a stablecoin?
  
• Key features of stablecoins
  
• The use of stablecoins in cross-border transactions
  
• Global connectivity of Thai financial transactions using stablecoins
  
• How Stripe can help
  

What is a stablecoin?

A stablecoin—or fixed-value coin—is a type of digital currency or cryptocurrency designed to maintain a stable value. This stability is achieved by pegging its value to stable assets—such as the US dollar or gold—or by using algorithmic mechanisms to regulate its price. As a result, stablecoins exhibit minimal price volatility and serve as a medium of exchange that’s considered safer than other cryptocurrencies.

Types of stablecoins

Stablecoins are generally categorized into four main types based on their underlying collateral assets, as follows:

Fiat-backed stablecoins

Fiat-backed stablecoins (or reserve-backed stablecoins) are digital assets whose value is pegged to a conventional currency, such as the US dollar (USD), and that are backed by reserves in a proportion closely corresponding to the number of coins issued. These types of coins are popular because of their stability due to a 1:1 price guarantee. For example:

• Binance USD (BUSD): A stablecoin backed by assets equivalent to the US dollar. Regulated by the New York State Department of Financial Services (NYDFS) through Paxos, it stands as one of the coins with a clear legal framework.
  
• Tether (USDT): The stablecoin with the highest market value and the most widespread usage, pegged at 1 US Dollar per 1 USDT.
  
• USD Coin (USDC): A stablecoin with a transparent reserve policy, the second largest by market capitalization; it undergoes regular audits. It’s pegged at 1 USD per token.
  

Crypto-backed stablecoins

Crypto-backed stablecoins are secured by other cryptocurrencies, such as Bitcoin or Ethereum. These assets are typically overcollateralized (meaning the value of the collateral exceeds the value of the issued tokens) in order to absorb market volatility. This type of coin is inherently complex and carries significant risk, particularly during periods of high cryptocurrency price fluctuation. Examples include:

• Dai (DAI): A highly transparent, decentralized stablecoin collateralized by cryptocurrencies such as Ethereum (ETH) or other tokens. It’s widely popular within the decentralized finance (DeFi) ecosystem.
  
• Liquity USD (LUSD): A decentralized stablecoin that uses ETH as the primary collateral. Its price closely tracks the US dollar, and it can be redeemed for its underlying collateral at face value.
  
• Origin Dollar (OUSD): A token collateralized by cryptocurrencies and other stablecoins—such as USDT and USDC—that not only maintains a stable value but also features a built-in mechanism to automatically generate yield for holders via DeFi platforms.
  

Algorithmic stablecoins

Algorithmic stablecoins use mechanisms to regulate the coin supply within the system in order to maintain a price level close to a designated target. They are not directly backed by assets. Although the underlying concept of these coins emphasizes decentralization—aiming to manage supply and demand dynamics to stabilize prices without the need for substantial financial reserves—they carry significant risks. Specifically, a decline in market confidence can potentially trigger a systemic failure. Examples of algorithmic stablecoins include:

• Ampleforth (AMPL): Stablecoins that use an automatic coin supply adjustment mechanism that automatically increases or decreases the number of tokens in holders' wallets to bring the price closer to the target.
  
• Frax (FRAX): A coin that’s garnered significant attention due to its semi-algorithmic model. It uses a combination of partial collateral—such as USDC and USDT—and an algorithmic system to peg the value to the US dollar, thereby offering greater stability than models relying solely on algorithmic mechanisms.
  
• TerraUSD (UST): Working in conjunction with the LUNA token, UST was designed to maintain a value close to 1 US dollar, though it did not hold a 1:1 reserve of actual US dollars. It was very popular before the high-profile collapse in 2022.
  

Commodity-backed stablecoins

Stablecoins collateralized by real assets—such as gold, oil, or real estate—have their value pegged to the price of the underlying asset. This mechanism serves as an effective hedge against inflation (particularly in the case of gold). The issuer must hold 100% real asset reserves equivalent to the number of coins in circulation, with reserve quantities subject to periodic audits by external firms. These coins are commonly used as a tool for portfolio diversification within the cryptocurrency space. Examples include:

• PAX Gold (PAXG): One coin is equivalent to one troy ounce of physical gold. This is a highly liquid stablecoin granting holders ownership rights to the gold backing the token instead of having to buy physical gold bars themselves.
  
• Tether Gold (XAUT): Issued by an affiliate company of Tether (USDT), one coin is equivalent to one troy ounce of gold. This is the second most popular gold-backed token after PAXG and is considered to have good liquidity in the Asian market.
  

Key features of stablecoins

Stablecoins are attracting attention among investors and within the fintech market due to the following benefits and key features:

Addresses inflation

Stablecoins—such as USDT or USDC—represent an alternative form of digital currency pegged to the US dollar. This is particularly advantageous in countries experiencing currency depreciation or inflation. Holding stablecoins eliminates the need to restrict oneself to a single national currency, thereby hedging against the risk of a weakening local currency (such as the Thai Baht), diversifying investment portfolios, and enabling the storage of value in a digital format that is easily transferable.

Helps weather market volatility

The cryptocurrency market is renowned for the volatility of its asset prices. As a result, investors often use stablecoins to facilitate trading, payments, and value transfers, as well as to serve as a temporary store of value. This allows them to avoid exposure to price fluctuations during periods of market volatility, mitigate downside risks, and temporarily lock in profits without the need to convert funds back into Thai Baht—thereby enabling them to securely hold assets during times when converting to fiat currency is not yet convenient.

Serves as a medium for cryptocurrency exchange

Stablecoins can serve as an intermediary medium for temporarily holding funds between entry and exit points in the crypto market. In this way, stablecoins act as a bridge, enabling users who primarily operate using Thai Baht to navigate the crypto market more fluidly—by converting their Baht into stablecoins before later exchanging them for other cryptocurrencies. Most trading platforms, both within Thailand and internationally, favor the use of USDT or USDC for trading.

Can support investment opportunities

Although stablecoins maintain a fixed value, users can generate returns through various investment channels—without the need to go through traditional banks or financial institutions. Examples of investment channels include:

• Crypto Lending: The practice of lending out cryptocurrency to earn interest, wherein the borrower must provide collateral exceeding the value of the borrowed amount to mitigate risk.
  
• Yield Farming: The act of depositing cryptocurrency into a DeFi platform with the primary objective of earning returns (such as interest, fees, or reward tokens) rather than speculating on price appreciation.
  
• DeFi Staking: The act of depositing or locking digital assets within a DeFi platform to support network security, in exchange for returns in the form of interest or an annual percentage yield (APY).
  

Has a clear legal framework

Thailand is one of the first countries in Asia to have clear regulations governing digital assets, where service providers must obtain licenses and are required to implement investor protection measures. The Securities and Exchange Commission (SEC) announced the addition of USDC and USDT to its list of approved cryptocurrencies, effective mid-March 2025. This legal clarity enhances transparency and builds confidence among stablecoin users in Thailand.

Enhances the international money transfer system

As Thailand supports stablecoins for trading with other digital assets, stablecoins are being considered a potential digital payment tool that could supplement or replace international money transfer systems in the future. Stablecoins are notable for a rapid transaction speed, enabling convenient cross-border and cross-platform transfers (depending on the network used), lower transaction fees compared to traditional methods, enhanced transparency and auditability via blockchain technology, and greater value stability relative to other cryptocurrencies.

Supports development of the digital economy

Thailand is pushing forward a digital transformation policy that promotes full integration of digital technology into organizations and businesses. Stablecoins are a key tool for enhancing liquidity within the digital system, supporting the fintech industry and Web3 businesses (the decentralized web), and creating opportunities for Thai startups to compete globally.

The use of stablecoins in cross-border transactions

In the future, stablecoins will serve as an important tool in cross-border payment systems. Examples of their potential uses in cross-border transactions include the following:

• International money transfers: Users can transfer stablecoins, such as USDT or USDC, directly to a recipient's e-wallet or digital wallet abroad, enabling real-time payment from the sender's account to the recipient. This reduces the transfer time from several days to just a few minutes and usually has lower fees than bank transfers or the SWIFT system.
  
• International payment for goods: Thai businesses can use stablecoins to pay for imports or receive export payments, thereby reducing paperwork and settlement time compared to traditional instruments such as Letters of Credit (LC) or bank transfers. This also helps to minimize transaction fees and mitigate exchange rate volatility.
  
• Import-export businesses: Businesses can use stablecoins to pay for goods from cross-border trading partners using blockchain payment systems. At the same time, Thai exporters can receive payments from overseas customers in the form of stablecoins and then convert them back into Thai Baht via licensed digital asset service providers in Thailand.
  
• Investment: Investors can use stablecoins as an intermediary medium to invest in foreign digital assets—for instance, by using USDC to store value instead of holding USD cash, thus facilitating the movement of funds internationally. This helps reduce the need for multiple currency exchange steps and provides easier access to foreign DeFi platforms.
  
• Tourism sector: International tourists can use stablecoins to pay for hotels, tour services, restaurants, or transportation in Thailand via e-wallets without needing to exchange foreign currency using a bank or traditional exchange service.
  
• Digital and ecommerce businesses: Businesses can choose to receive payments from international customers using stablecoins, which can help reduce payment chargeback issues. These funds can subsequently be converted back into Thai Baht through authorized digital asset exchanges within Thailand. This solution is best suited for freelancers, software developers, and online service providers who have customers worldwide.
  
• Wages for foreign workers: Employers in Thailand can pay wages to foreign employees using stablecoins, allowing employees to transfer money back to their home countries immediately and reducing international transfer fees. This method provides clear payment records that comply with labor laws and accounting audit requirements.
  
• Thai freelancers receiving payments from abroad: Thai freelancers can receive payments from international clients in stablecoins and convert them to Thai Baht via digital asset exchanges. Freelancers can store stablecoins in an e-wallet and choose to convert them into Baht when the exchange rate is suitable to them.
  

Global connectivity of Thai financial transactions using stablecoins

Businesses should be prepared to accommodate the use of stablecoins when they’re officially adopted on a widespread scale in the future. Currently, there are no stablecoins issued by the Bank of Thailand (BOT). The coins currently in use and accepted are those issued by the private sector. The applications these stablecoins have been used for within Thailand include:

• Transferring money internationally using stablecoins
  One commercial bank has launched an international payment and money transfer service using stablecoins as a medium of exchange, aiming to reduce the time and fees for sending money abroad. The service is still in the initial stage and operates under the regulatory framework of the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC).

• General spending with stablecoins
  In 2025, a digital wallet app was launched that allows users to pay with USDT or other cryptocurrencies by scanning a QR code or using Tap to Pay functionality. A crypto card was also introduced that supports stablecoin spending, functioning just like a standard debit or credit card. These initiatives aim to facilitate transactions specifically for tourists and cryptocurrency users, with support extending to over 100 million online and offline businesses worldwide that accept Visa. The system operates by deducting the payment amount from the user's stablecoin balance and converting it into Thai Baht in real time at the point of sale. However, the use of stablecoins to pay for goods and services is still not directly regulated by Thai authorities. Users are advised to carefully consider the risks, even though these payments are, in practice, already feasible.

• Investing in, trading, and exchanging stablecoins
  In 2025, the government developed a clear regulatory framework for digital assets, allowing investors to legally buy, sell, and exchange stablecoins, such as USDT and USDC, with other cryptocurrencies. This made stablecoins an important tool for investment, risk management, and cross-border value transfer. Furthermore, they serve as tools for capitalizing on price differentials, earning interest through deposits, and acting as trading intermediaries; investors often convert their cryptocurrencies into stablecoins to maintain liquidity and mitigate risks associated with market volatility.

• Expanding Thai businesses worldwide
  Thai businesses can expand into the global market by accepting stablecoin payments. Global solutions like Stripe can help. By integrating cryptocurrency functionality via a flexible API, businesses can offer additional payment options, reduce cross-border transaction fees, and automatically convert cryptocurrency into Thai Baht before transferring funds to their linked accounts. This empowers Thai businesses to modernize their operations and access global markets with greater convenience and security.

How Stripe can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world. Businesses can accept stablecoin payments from almost anywhere in the world that settle as fiat in their Stripe balance.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs and access to 125+ payment methods, including stablecoins and crypto.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.