How Stablecoins Power Internet-Scale Settlement?

Stablecoins combine the transferability of blockchain assets with a value designed to remain relatively stable.

A payment can be sent across borders, received in a wallet, and used in another blockchain application without first returning to a bank account. Businesses can also convert the stablecoin into fiat currency through an exchange, issuer, or payment provider.

This makes stablecoins useful for:

• Cross-border supplier payments
• Treasury transfers between business entities
• Merchant settlement
• Payroll and contractor payments
• Remittances
• On-chain trading and lending

Businesses that do not want to hold digital assets can also accept crypto with automatic conversion into fiat or stablecoins.

How Does Ethereum Support Stablecoin Settlement?

Ethereum combines stablecoin liquidity with smart contracts that can execute financial instructions automatically.

A smart contract can release a payment when specified conditions are met, divide funds between several recipients, or connect a stablecoin transfer to lending, trading, and tokenised-asset applications. Ethereum’s layer-two networks can provide similar functionality with lower transaction fees than its main network.

SharpLink CEO Joseph Chalom has described Ethereum as “the future settlement layer of finance,” highlighting its ability to support programmable transactions rather than simple asset transfers.

Ethereum is not the only network competing for this activity. Coinbase has also refocused Base on stablecoin payments and financial infrastructure, reflecting broader competition between blockchains seeking to become settlement platforms.

Why Is TRON Important for Stablecoin Transfers?

TRON’s role is centred more heavily on high-volume stablecoin transfers, particularly those involving USDT.

TRON DAO reported that USDT transfer value on the network reached $7.9 trillion during 2025, an increase of 45% from the previous year. The figure demonstrates the scale of stablecoin activity on TRON, although transfer volume should not be treated as equivalent to retail payment revenue or unique economic transactions.

Users and payment providers often select networks based on transaction costs, speed, exchange support, and the stablecoins available. TRON has become prominent where users prioritize frequent transfers and relatively low fees.

Ethereum and TRON therefore serve overlapping but different needs. Ethereum offers a larger programmable ecosystem, while TRON has established a significant position in stablecoin transfers.

How Does a Stablecoin Payment Work?

1. The sender obtains stablecoins

A customer or business acquires stablecoins through an issuer, exchange, wallet, or payment provider.

The buyer should confirm how the asset maintains its value, what reserves support it, and whether it can be redeemed directly.

2. The payment moves across a blockchain

The sender enters the recipient’s wallet address and selects the correct network.

The blockchain validates and records the transaction. Sending an asset through an incompatible network or to the wrong address can result in permanent loss.

3. Software processes the payment

A payment gateway or smart contract can identify the transfer, update an invoice, and trigger another action.

Businesses may use this functionality to automate settlement, reconcile transactions, or distribute payments between different accounts.

4. The recipient holds or converts the funds

The recipient can retain the stablecoins, use them for another payment, or convert them into fiat currency.

Businesses seeking predictable cash flow may choose automatic bank settlement instead of keeping stablecoins on their balance sheets.

How Are Stablecoins Entering Mainstream Payments?

Stablecoin infrastructure is increasingly being integrated into established payment networks.

Visa has expanded its stablecoin settlement program across multiple blockchains, including Ethereum and Solana. Circle has also developed payment infrastructure intended to connect stablecoin settlement with financial institutions and international fiat payouts.

The same trend can be seen in Mastercard’s acquisition of stablecoin infrastructure provider BVNK and MoneyGram’s deeper involvement in blockchain payment infrastructure.

These developments suggest that stablecoins may operate behind payment products without customers needing to interact directly with wallets or blockchain software.

What Risks Must Businesses Consider?

Stablecoins reduce exposure to cryptocurrency volatility, but they do not remove financial or operational risk.

• Issuer risk: A stablecoin depends on the issuer’s reserves, redemption process, and financial controls.
• Network risk: Congestion, outages, or rising transaction fees can affect settlement.
• Custody risk: Businesses must protect wallet credentials or assess the security of third-party custodians.
• Regulatory risk: Stablecoin, tax, and anti-money-laundering rules vary by jurisdiction.
• Liquidity risk: Converting a stablecoin into fiat may become more expensive or difficult during market disruption.
• Interoperability risk: A stablecoin issued across several networks may not move between them without an exchange or bridge.

Businesses should therefore evaluate the complete payment chain, including the issuer, blockchain, wallet, processor, conversion provider, and bank settlement process.

Stablecoins can support faster and more programmable money movement, but becoming an internet-scale settlement layer will depend on whether that infrastructure remains reliable, regulated, and accessible across different networks and national currencies.

FAQ

What did SharpLink CEO Joseph Chalom have to say about Ethereum?

According to comments from CoinMarketCap, Joseph Chalom mentioned that Ethereum has become the settlement layer of the world due to its programmable nature, and he referred to Bitcoin as mostly a store of value.

What did TRON DAO claim?

TRON DAO claimed that their network had processed over $6 trillion in stablecoin transfer volume. In addition, the stablecoin supply on the network was made up of USDT and USDC coins, which together comprised 87% of the entire stablecoin circulation.

Why are stablecoins referred to as the settlement layer of the internet?

Stablecoins enable users to move value across blockchain networks at relatively stable prices and support online payment services and other financial applications.

Do Ethereum and TRON perform the same function?

Both Ethereum and TRON have similar functionality in relation to stablecoins, yet each has a distinctive advantage. Ethereum is known for its programmability, while TRON is known for processing large volumes of transactions with low transaction fees.

Does Bitcoin compete with stablecoin networks directly?

The comments in the source differentiate the purposes of the stablecoin networks from Bitcoin as a store of value.