Using Stablecoins for Treasury and Liquidity Management

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As per data from the Bank for International Settlements (BIS), cross-border payments using traditional banking rails can take one to five business days to settle, largely due to intermediaries, cut-off times, and fragmented liquidity pools. During this period, capital remains idle and treasury visibility is limited. At the same time, enterprises operating across regions face increasing exposure to FX volatility and delayed cash positioning.

As of late 2025, research from Cornell University highlights that a growing portion of stablecoin circulation is being used for payments, settlements, and treasury-related liquidity movement, rather than trading or speculative activity. The study notes that enterprises and financial institutions increasingly rely on stablecoins as digital cash equivalents for cross-border transfers, short-term liquidity positioning, and operational settlements.

This shift reflects stablecoins’ evolution into infrastructure-level instruments, where value lies in real-time settlement, transparency, and programmability, rather than price exposure or yield generation.

Stablecoins as a Real-Time Liquidity Layer for Enterprises

Stablecoins as Digital Cash Equivalents

Stablecoins are most effective when positioned as digital representations of cash, rather than financial instruments. Technically, they are fiat-backed units issued on blockchain networks, enabling value transfer without reliance on batch-based clearing systems. Because transactions occur on shared ledgers, balances and movements are visible in near real time.

Key characteristics include:

1:1 fiat peg backed by reserves
On-chain issuance and redemption
Immediate balance updates across systems
Compatibility with existing on/off-ramps

This structure allows stablecoins to function as a programmable extension of cash management infrastructure.

24/7 Settlement and Real-Time Visibility

Traditional treasury operations depend on banking hours, cut-off times, and delayed reconciliation. Stablecoin networks operate continuously, settling transactions within minutes regardless of geography or time zone.

Operational impact:

Continuous settlement, including weekends and holidays
Real-time confirmation of funds availability
Reduced reliance on end-of-day or T+1 reporting
Improved cash position accuracy

This shift enables treasury teams to move from reactive reporting to continuous liquidity oversight.

Intraday Liquidity Management and Automation

Stablecoins support same-day liquidity orchestration without waiting for clearing cycles. Because transfers settle quickly, funds can be deployed, rebalanced, or recalled within hours rather than days.

Common intraday capabilities:

Just-in-time funding of accounts or wallets
Automated transfers based on predefined thresholds
Rule-based approvals using smart contracts
Reduced idle cash across entities

This turns liquidity management into a policy-driven process rather than a manual intervention.

Cross-Border Liquidity Consolidation

For enterprises operating across multiple jurisdictions, liquidity is often fragmented across local accounts. Stablecoins act as a neutral settlement layer, allowing capital to move between regions without passing through multiple correspondent banks.

Compared to traditional rails:

Fewer intermediaries involved
Faster cross-border settlement
Lower operational friction
Improved capital mobility

Banks remain entry and exit points, but stablecoins reduce the time and complexity capital spends in transit.

Infrastructure Impact on Treasury Decision-Making

By operating as software-driven infrastructure, stablecoins improve:

Liquidity agility across regions
Capital efficiency through reduced idle balances
Decision speed through real-time data access

When integrated alongside existing treasury systems with proper governance, stablecoins function quietly in the background, enhancing speed, visibility, and control without disrupting established financial processes.

Treasury Use Cases: Cash Management, FX Control, and Settlements

Stablecoins are already being used in production environments as operational plumbing, not as financial bets. The following use cases focus on where they reduce friction without replacing banks or altering existing treasury controls.

Use Case 1: Cross-Border Operating Liquidity for Global Subsidiaries

Many global organizations operate with cash spread across multiple countries, often locked in local accounts and subject to banking cut-off times. Stablecoins are being used as an intermediate liquidity layer between entities.

How this works in practice:

Local currency is converted to fiat-backed stablecoins via regulated on-ramps
Stablecoins are transferred on-chain between entities in minutes
Funds are converted back to local currency where needed

Operational benefits:

Faster movement of operating capital between regions
Reduced reliance on correspondent banking chains
Improved visibility into consolidated liquidity positions

Banks remain the entry and exit points, while stablecoins reduce the time capital stays in transit.

Use Case 2: FX Buffering for Volatile Currency Environments

Enterprises operating in regions with currency volatility are using stablecoins as a temporary FX buffer, not as a long-term holding asset.

Typical flow:

Revenue received in local currency
Converted into USD-pegged stablecoins during favorable windows
Held briefly to avoid forced FX conversions
Redeployed or converted back when required

This approach:

Reduces exposure to sudden currency swings
Improves predictability of operating margins
Separates FX timing decisions from payment execution

Technically, this is enabled by fast settlement and transparent on-chain balances, allowing tighter control over timing.

Use Case 3: Vendor and Partner Settlements with Just-in-Time Funding

Stablecoins are increasingly used for B2B settlements, particularly where vendors or partners operate across borders.

Common implementation:

Stablecoins funded only when payment is due
On-chain transfer triggered via treasury systems or APIs
Immediate settlement confirmation shared with counterparties

Results observed:

Faster vendor payments without pre-funding accounts
Lower reconciliation effort due to shared transaction records
Improved working capital efficiency through just-in-time funding

This model improves control and predictability while keeping banks involved for compliance and conversion.

Risk, Governance, and Compliance Considerations for Treasury Teams

Stablecoin adoption in treasury is governed less by technology constraints and more by risk discipline and operational controls. When deployed as infrastructure, stablecoins align with existing enterprise governance models rather than introducing new categories of exposure.

Key Risk and Governance Dimensions in Stablecoin-Based Treasury

Dimension	What It Means in Practice	How Risk Is Managed
Issuer & reserve structure	Fiat-backed stablecoins representing real-world cash	Use of audited issuers with transparent reserve disclosures
Custody & asset protection	Secure storage and transfer authorization	Institutional custody, multi-signature approvals, role-based access
Regulatory alignment	Compliance with financial and jurisdictional requirements	Regulated on/off-ramps, KYC/AML enforcement, jurisdiction mapping
Auditability & reporting	Ability to trace and reconcile transactions	Immutable on-chain records, time-stamped settlement data
Accounting treatment	Classification of stablecoins on balance sheets	Defined accounting policies and consistent valuation methods
Usage governance	Restrictions on how stablecoins are used	Policy-driven treasury usage, no speculative or yield exposure

Stablecoin Issuer and Reserve Risk

Treasury usage depends on stablecoins that maintain a clear and verifiable link to fiat reserves. Enterprise-grade stablecoins are typically backed 1:1 by cash or short-term government securities, with regular third-party attestations. This structure limits price deviation and ensures reliable redemption into fiat.

Custody, Governance, and Control Enforcement

Treasury-grade implementations rely on institutional custody solutions that mirror existing financial approval structures. Transfers are governed through cryptographic controls such as multi-signature authorization and segregated access roles. These mechanisms replace manual approvals with technically enforced policies, reducing operational risk.

Compliance, Auditability, and Reporting

Because transactions are recorded on immutable ledgers, stablecoins provide continuous auditability. Each transfer carries a permanent timestamp and transaction history, simplifying reconciliation and supporting internal and external audits. Regulatory compliance is maintained through regulated access points rather than direct exposure to public markets.

Why This Structure Works for Treasury

By embedding governance at the infrastructure level, stablecoins enable faster settlement and improved visibility without expanding risk boundaries. When usage is clearly defined and policy-driven, stablecoins function as a controlled liquidity rail aligned with enterprise risk frameworks, not as speculative instruments.

Conclusion

Treasury operations are shifting from static cash tracking to dynamic liquidity orchestration driven by software. Stablecoins enable faster settlement, real-time visibility, and programmable controls across regions. When deployed with clear governance, they improve capital efficiency and predictability without altering existing financial controls or risk frameworks.

Shamla Tech is a stablecoin development company that builds regulated, treasury-grade infrastructure for enterprises. Its focus is on compliant issuance, secure custody integration, and system-level automation that fits alongside existing banking and ERP systems. Stablecoin development, when treated as core infrastructure, becomes a long-term operational advantage rather than a short-term trend.

Partner with Shamla Tech for Treasury-Grade Stablecoin Infrastructure

Shamla Tech works with enterprises to design and deploy stablecoin systems purpose-built for treasury and liquidity management. Our solutions focus on regulated issuance, secure custody integration, real-time settlement, and policy-driven controls that align with existing ERP and banking frameworks.

By treating stablecoins as core financial infrastructure rather than experimental tools, Shamla Tech enables faster cross-border liquidity movement, improved cash visibility, and operational efficiency without increasing risk or disrupting established treasury governance.

Contact us to build a secure, policy-driven stablecoin layer for enterprise-grade treasury management!

FAQs

1. Are stablecoins safe to use for treasury operations?

Stablecoins used in treasury are typically fiat-backed and supported by audited reserves. When combined with institutional custody, access controls, and defined policies, they operate within existing enterprise risk and governance frameworks.

2. Do stablecoins replace banks in treasury management?

No. Banks remain essential for fiat custody, compliance, and on-off ramps. Stablecoins function as an intermediate settlement layer that reduces friction between accounts, regions, and entities without removing banking relationships.

3. How do stablecoins improve cross-border liquidity management?

Stablecoins enable near-real-time settlement across jurisdictions, reducing delays caused by correspondent banking chains. This allows faster movement of operating capital and improved visibility into global liquidity positions.

4. How are stablecoin transactions audited and reported?

All stablecoin transactions are recorded on immutable ledgers with time-stamped records. These records support reconciliation, internal controls, and external audits when integrated with regulated custody and reporting systems.

5. What is the first step for enterprises exploring stablecoin adoption?

The first step is defining clear treasury use cases and governance policies. This includes asset selection, custody models, regulatory alignment, and integration with existing ERP and treasury management systems.