Stablecoins explained simply, for finance teams

Finance teams hear about stablecoins from two directions: a supplier who asks to be paid in USDT, and a board member who read that stablecoins are the future of payments. Neither helps you decide what to do on Monday. This guide explains what they are, how they hold their value, and what to check before you touch one.

What is a stablecoin?

A stablecoin is a token on a blockchain that aims to keep a fixed value, almost always one US dollar. The issuer creates tokens when customers deposit dollars and destroys them when customers redeem. In between, the tokens can be sent to anyone with a compatible wallet, in minutes, at any hour.

The two largest are USDC, issued by Circle, and USDT, issued by Tether. Both exist on several blockchains, such as Ethereum, Tron, Solana and Polygon.

How does a stablecoin keep its value?

Fiat-backed stablecoins hold reserves, mostly cash and short-term US government debt, and promise to redeem each token for one dollar. Large holders can redeem directly with the issuer. Everyone else buys and sells through exchanges and payment providers, and arbitrage keeps the market price close to one dollar.

Both Circle and Tether publish reports on their reserves. Read them, because reserve quality and disclosure are the main difference between issuers. The USDC vs USDT guide compares the two.

Stablecoins vs crypto

Both run on the same blockchains; only the stablecoin is designed to hold its value.

How are stablecoins regulated?

In the US, the GENIUS Act became law in July 2025. It sets federal rules for issuers of payment stablecoins, including fully backed reserves and regular public disclosure. In the EU, the Markets in Crypto-Assets Regulation (MiCA) has applied to stablecoin issuers since June 2024; an issuer must be authorised to offer its token to the public there.

For a business user, regulation mostly matters in two places: which stablecoins your provider supports, and how your accountant books them.

What finance teams use them for

1. Paying a supplier or contractor who already works in USDC or USDT, often in countries where receiving a USD wire is slow or costly.
2. Settling outside banking hours. A stablecoin transfer on Saturday arrives on Saturday.
3. Holding dollars for a subsidiary or team in a country with currency controls, where allowed.

How companies use stablecoins goes through real cases.

The risks to manage

• Wrong address or wrong network. A token sent to an address on the wrong blockchain can be lost. Test with a small amount first.
• Issuer risk. A stablecoin is only as good as its reserves and its issuer.
• On- and off-ramp costs. Moving between bank money and stablecoins costs a fee and sometimes a spread.
• Local rules. Some countries restrict holding or paying in stablecoins. Check before you use them there.

How Rivet handles them

On Rivet, USDC and USDT sit next to your USD and EUR balances. Clients pay your bank details as usual, you convert when you choose, and payouts in stablecoins run under the same approvals as bank payouts. Stablecoin deposits and withdrawals come with every plan, including the free one. See Ramps for the networks we support.