Inside the Exponential Rise of Stablecoin-as-a-Service Business

Stablecoin:- The global stablecoin market supply has crossed $300 billion, marking one of the fastest growth phases in crypto history. But 2025 will be remembered not just for stablecoins returning to the spotlight, but for what happened underneath.

At the same time, a quieter but more important shift is taking place. Leading players are entering and building the infrastructure to issue, manage and integrate stablecoins for institutions.

This comes as Banks, fintechs and even governments are joining the stablecoin race – for example, Kyrgyzstan recently launched ots national stablecoin on BNB Chain. The demand is now no longer just for stablecoins, but for the systems that make them usable at scale.

Coinbase’s December system upgrade further reflected this change. The exchange now allows third parties to create custom-branded stablecoins, backed by assets such as USDC. This signaled a shift from pure trading platforms to orchestration layers, where stablecoins can be embedded into payments, loyalty programs and treasury operations.

There are platforms and startups building “stablecoin-as-a-service” for banks, brands and governments, reflecting the exponential growth in  “stablecoin-as-a-service” (SCaaS) business. Here’s How

What “Stablecoin-as-a-Service” Actually Means

Stablecoin-as-a-Service (SCaaS) refers to platforms that allow companies to launch, manage and use their own branded stablecoins without building crypto infrastructure from scratch. In simple terms, it is the fintech equivalent of a payments processor plus a trust bank, delivered on blockchain rails.

Instead of issuing a single public stablecoin, these providers offer the tools and compliance needed for others to issue digital dollars themselves.

At their core, SCaaS platforms handle the heavy lifting behind stablecoin issuance and usage. This includes mint and burn logic that ensures tokens are created when fiat is deposited and destroyed when redeemed.

They provide custody and reserve management, support cross-chain deployment, and offer developer APIs.

For banks, fintechs, and enterprises, the appeal is speed and simplicity. SCaaS allows them to launch a branded stablecoin quickly. This is all without setting up banking relationships, custody frameworks, or regulatory infrastructure on their own.

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The Growth in Stablecoin Issuance Business

Traditionally, the stablecoin market was dominated by a small group of providers focused purely on issuance. Companies like Circle, Tether, and Paxos handled the creation, backing, and management of stablecoins, with limited tooling for third parties.

However, that model is now changing. In 2025, new and established players entered the stablecoin-as-a-service segment, expanding beyond issuance into full-stack infrastructure.

Coinbase made a major move with its stablecoin system upgrade, enabling partners to launch custom-branded tokens. Stripe entered the space through its Open Issuance platform, bringing stablecoin tooling to fintechs and enterprises.

Alongside these incumbents, a new wave of startups has emerged. Companies such as VanEck CEO-son founded startup Agora, Bastion, and Crossmint raised millions of dollars in 2025 to build APIs, compliance tools, and issuance rails aimed at institutions.

However, this new wave of stablecoin companies differs from earlier issuers in both focus and function. Traditional players like Circle, Tether, and Paxos concentrated on issuing and managing their own stablecoins, controlling reserves, compliance, and distribution.

In contrast, newer entrants treat stablecoins as infrastructure rather than products. Startups like Agora, Bastion, and Crossmint are building modular APIs for issuance, cross-chain deployment, wallets, and payments.

Together, they signal a shift from “using a stablecoin” to “issuing stablecoins as a service,” turning digital dollars into programmable financial rails rather than standalone tokens.

What’s Next?

Well, there’s a reason about why players like coinbase are even entering the business. Stablecoin-as-a-service providers do not earn revenue from the token itself. Instead, firms like Paxos, Stripe and Coinbase generate income through enterprise fees tied to stablecoin issuance, reserve and custody management, compliance, and ongoing usage.

Paxos, the regulated issuer behind PayPal’s PYUSD stablecoin, has overseen billions of dollars in stablecoin issuance in 2025. But PYUSD represents the majority of its $6.6 billion stablecoin book.

While Paxos has not publicly disclosed revenue figures from PayPal’s stablecoin contract, its enterprise model typically earns fees tied to issuance, reserve services and usage rather than a simple token sale.

Thus, the rapid emergence of new stablecoin infrastructure providers in 2025 reflects a structural shift, not a passing trend. As stablecoin supply crossed $300 billion, enterprises are expected to began adopting stablecoins for real payments, not speculation, a trend highlighted in a16z’s outlook for 2025. Regulatory clarity is also stimulating it, with frameworks such as the GENIUS Act set for markup in early January 2026.

And in 2026, the trend is set to accelerate further with new infra providers eying the market.

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