Why banks are moving beyond single-provider stablecoin payment rails

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Latest developments: Infrastructure providers are increasingly building network-based stablecoin payment systems instead of single-provider rails, said Borderless CEO, Kevin Lehtiniitty, in an interview on CoinDesk’s Markets Outlook.

  • Borderless recently partnered with wallet infrastructure provider Dfns to launch an institutional stablecoin off-ramp aimed at banks, fintechs and enterprises.
  • The system routes stablecoin payouts through multiple liquidity providers across global markets.
  • The goal is to convert stablecoins into local fiat currencies more reliably while avoiding dependence on a single vendor.

Why it matters: Early enterprise stablecoin experiments often relied on bundled providers that handled the entire stack.

  • These “black box” solutions packaged wallets, compliance tools and liquidity access into a single product.
  • That model helped institutions run quick proof-of-concept pilots without rebuilding their payments infrastructure.
  • But it also created vendor lock-in and introduced operational risk if a single provider experienced downtime.

The shift to “Stablecoin 2.0”: Institutions are now moving toward modular infrastructure where they control more of the stack internally.

  • Large enterprises are selecting separate best-in-class tools for compliance, custody wallets and liquidity access.
  • This approach mirrors how traditional financial infrastructure is built across multiple vendors.
  • Lehtiniitty describes this shift as the transition from “Stablecoin 1.0” pilots to “Stablecoin 2.0” production systems.

How the network model works: Multi-provider networks help institutions manage regulatory uncertainty and improve pricing.

  • No single company is licensed or regulated in every country, making global payout coverage difficult with one partner.
  • A network structure lets institutions connect to multiple liquidity providers within the same corridor.
  • Payments can automatically reroute if a provider experiences regulatory issues, banking disruptions or technical outages.

What comes next: Stablecoins may increasingly operate behind the scenes as financial infrastructure.

  • Enterprises are exploring the technology for cross-border payments, especially in emerging market corridors.
  • Stablecoins can also reduce the need for costly pre-funded accounts used in traditional remittance systems.
  • Over time, the technology may become embedded in payment systems rather than marketed as a standalone product.

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