One post tagged with "regulatory compliance"

Introduction​

Stablecoins – digital currencies pegged to stable assets like fiat – are emerging as tools to bridge the financial inclusion gap. By combining the stability of traditional money with the efficiency of blockchain, stablecoins enable low-cost, near-instant transactions without requiring full access to banks. This is especially powerful for the 1.4 billion unbanked adults globally who lack basic accounts. Importantly, many stablecoin applications can operate within existing financial regulations, making them easier to deploy in the real world. Developers worldwide are exploring use cases – from cross-border remittances to digital savings – that comply with laws while serving underserved populations. The following report provides a deep analysis of such use cases, highlights jurisdictions with clear regulatory frameworks, showcases successful pilot programs, and surveys development tools (SDKs/APIs) and blockchain platforms suited for inclusive stablecoin solutions. We also identify partnerships and grant programs supporting innovation in this space.

Legally Compliant Stablecoin Use Cases​

Certain stablecoin use cases have both high impact potential for unbanked communities and relatively straightforward compliance pathways. Key examples include cross-border remittances, humanitarian aid distribution, and digital savings/financial services. Each can be structured to meet existing regulations (e.g. anti-money-laundering, money transmitter laws) while delivering essential services in underserved regions. Below we detail these use cases and why they are attractive for developers focusing on regulated, high-impact fintech solutions.

Remittances and Cross-Border Payments​

Remittances – money sent by migrants to family back home – incur high fees and slow speeds in traditional channels (5–7% fees and days of waiting are common). Stablecoins offer a compliant alternative: regulated fintech providers can handle KYC/AML and convert cash to digital dollars, which then move across borders in seconds at minimal cost. Studies show stablecoin remittances could cut costs by up to 80%, saving billions for low-income families. For example, in the UK–Nigeria corridor, stablecoin-based transfers reduced average fees from 8.5% to ~3%, while still maintaining compliance (verifying users and following AML rules). Major money transfer companies are embracing this: MoneyGram’s partnership with Stellar allows users to convert cash to USDC (USD Coin) and vice versa without a bank account, using MoneyGram’s licensed network for cash handling. This service settles nearly instantly and complies with money transmission regulations by working within MoneyGram’s regulatory framework. The impact is significant – faster, cheaper remittances directly increase disposable income for underserved households and encourage a shift from costly informal channels to safer, transparent ones.

Humanitarian Aid and Cash Assistance​

Stablecoins are gaining traction for humanitarian aid distribution, where NGOs and agencies must deliver funds to people in crisis zones or underbanked areas. Traditional aid often relies on cash or hawala networks, leading to leakage, delays, and oversight challenges. Stablecoins can digitize aid with end-to-end transparency and speed, all while remaining within legal bounds for humanitarian exceptions. For instance, during the COVID-19 pandemic, aid workers and NGOs leveraged stablecoins like USDC to send emergency funds globally, saving ~35% in fees compared to bank wires. In 2022, the UN’s refugee agency (UNHCR) piloted sending aid to Ukrainian refugees via USDC on Stellar through the Vibrant wallet, providing a “blueprint” for faster, more accountable aid. Recipients got digital dollars that could be cashed out as needed, ensuring funds reached the right people quickly. The UNHCR’s treasurer noted this method “makes sure the money goes exactly where it’s supposed to go…and [that] they need money right now”. Compliance is handled by registering recipients and monitoring disbursements, similar to traditional cash aid but with far greater control. Recent pilots by NGOs like Mercy Corps in conflict zones demonstrate up to 62% faster aid delivery with 10.8% cost savings, reaching more beneficiaries by streamlining compliance and reducing intermediaries. These examples show that with proper oversight and KYC for end-recipients, stablecoin aid can operate within existing legal frameworks (e.g. sanctioned-country humanitarian exemptions) while vastly improving efficiency and transparency.

Digital Savings and Financial Services​

For unbanked and underbanked populations, stablecoins can provide a safe digital savings option and gateway to basic financial services. In many developing countries, people face volatile local currencies or lack access to banks; holding money in a USD-pegged stablecoin can protect value and enable transactions. Crucially, individuals using self-custodied stablecoin wallets generally do not violate regulations – holding or spending stablecoins is legal in most jurisdictions, akin to holding foreign currency or a digital voucher. Fintech apps that custody stablecoins for users may need e-money or money service licenses, but several jurisdictions now offer clarity on this (as discussed in the next section). The impact potential is high: Stablecoins act as “digital dollars” that shield savings from inflation and enable everyday transactions for those without bank accounts. According to UBS research, consumers in high-inflation economies are adopting stablecoins as “a trustworthy and transparent alternative… used for everything from savings to transactions,” largely because of lower risk of government seizure or devaluation. In Argentina, for example, citizens have turned to USD-pegged stablecoins like USDC and DAI to preserve wealth amidst inflation, operating within existing currency rules by using regulated crypto exchanges or P2P transfers. Developers have built digital wallets with stablecoin savings features that comply with KYC/AML by integrating third-party compliance APIs. For instance, the Latin American wallet Airtm (a registered U.S. MSB) holds client funds in USDC and lets users seamlessly swap to local currency when needed. This kind of digital savings tool, delivered via a smartphone app, can empower unbanked users to store, send, and receive money globally. By designing apps to be non-custodial or by partnering with licensed custodians, developers can navigate regulations while providing unbanked users a stable store of value and access to payments.

Merchant Payments and Local Commerce​

Another emerging use case is enabling underserved merchants and micro-businesses to accept payments via stablecoins. Many small merchants in cash-driven economies cannot easily access credit card networks or digital payments. Stablecoins offer a way to accept digital payments with low fees, settled instantly to a USD-equivalent balance. In practice, this can be set up in compliance by using licensed payment processors or exchange platforms as intermediaries for cash-in/out. For example, fintech providers in Southeast Asia have integrated stablecoin payments for merchants using regulated on/off ramps – customers pay in stablecoin and merchants can immediately convert to local currency through an exchange that follows local regulations. Large payment processors are also moving in: Shopify now allows merchants to accept stablecoins for online sales, leveraging partner services that handle compliance and conversion. The impact for unbanked merchants is promising: they can tap into e-commerce and digital sales without traditional bank merchant accounts, expanding their customer base. In day-to-day retail, stablecoin payment apps (often using QR codes on mobile) have been piloted in markets like Kenya and Nigeria, letting customers pay a shopkeeper in, say, USDC or a local currency stablecoin. Because transactions are on-chain, records are transparent which can help with tax and legal compliance. Many such solutions are in early stages, but as stablecoin payments yield lower fees than cards (often mere cents) and no chargebacks, they address a pain point for small vendors. Regulators generally treat merchant-facing stablecoin services as they would any digital payment service, requiring registration or licensing of the service provider but not burdening the end-user. This means developers can create merchant payment platforms that plug into existing licensed exchanges or payment gateways to handle the regulatory parts, while the user experience remains a simple wallet app for the merchant. The potential to increase financial inclusion by bringing cash-only businesses into the digital economy is substantial, all while using stablecoins under compliance guardrails.

Summary of Key Use Cases, Regulatory Ease, and Impact: The table below highlights how these use cases rank in terms of ease of regulatory compliance and their potential impact on underserved populations:

Each of these use cases demonstrates a balance of regulatory feasibility and social impact. Developers can choose the segment that aligns with their mission, knowing that current laws (with the right partnerships or licenses) do accommodate these activities. In particular, remittances and aid stand out for their significant humanitarian impact, and regulators have shown willingness to allow innovation here, provided consumer protection and AML measures are in place.

Regulatory Clarity and Favorable Jurisdictions​

Global regulators have increasingly turned their attention to stablecoins, and some jurisdictions now provide favorable clarity that makes development easier. Generally, regulators focus on reserve backing, redemption rights, transparency, and licensing of stablecoin issuers – all of which, when clearly defined, reduce uncertainty for developers building on those stablecoins. Below are examples of frameworks and regions leading in regulatory clarity:

• European Union (MiCA): The EU’s Markets in Crypto-Assets (MiCA) regulation (taking effect 2024–2025) explicitly covers stablecoins (termed “e-money tokens” if fiat-pegged). MiCA requires 100% reserve backing, regular audits/disclosures, and redeemability at par. Notably, stablecoins under MiCA cannot pay interest (to distinguish from bank deposits). Large issuers face transaction volume caps (e.g. daily transaction limits) to protect monetary stability. For developers, MiCA provides a clear legal category for stablecoins – if you integrate a Euro or USD stablecoin that complies with MiCA, you know it’s legally recognized across the EU as electronic money. This makes it easier to launch apps (remittance services, etc.) in Europe using stablecoins, as long as you partner with a MiCA-licensed issuer or obtain necessary registrations. MiCA’s standardized rules are seen as a global blueprint, giving confidence that a Euro stablecoin, for example, is fully regulated and safe for consumers.

• United States (State-Level and Pending Federal Law): The US lacks a unified federal stablecoin law as of 2025, but there is growing momentum. State regulators have stepped in – e.g. the New York Department of Financial Services (NYDFS) issued guidance that any USD-backed stablecoin under its supervision must be fully reserved at all times, with clear redemption policies and monthly audits. This is why NYDFS-regulated coins like Paxos’s USDP and Gemini’s GUSD have explicit rules on backing and redemption. Circle’s USDC, while not under NYDFS, voluntarily provides similar transparency (monthly attestations) and is licensed as a money transmitter in numerous states. For developers, this patchwork means it is legal to use stablecoins like USDC or USDP in the US, and these coins are already compliant via their issuers’ licensing. Any app facilitating stablecoin payments in the US will typically register as a Money Services Business (MSB) and follow FinCEN guidelines – a known regulatory path. On the federal horizon, proposals such as the Stablecoin TRUST Act and the GENIUS Act are being discussed, aiming to federalize oversight (Federal Reserve for banks, OCC for non-banks, etc.). While not yet law, the expectation of 2025 legislation indicates the US is moving toward clearer rules, likely resembling NYDFS standards nationwide. In short, U.S. developers currently work under state compliance, but the use of established stablecoins is generally permitted and increasingly encouraged by regulators’ public statements.

• Singapore and Hong Kong: These Asian financial hubs have crafted comprehensive stablecoin regimes. In Singapore, the Monetary Authority of Singapore (MAS) finalized a framework in August 2023 for single-currency stablecoins pegged to SGD or G10 currencies. The rules allow banks and non-banks to issue stablecoins, but with strict requirements: reserves must be high-quality and segregated, issuers must meet capital and liquidity minimums, 1:1 redemption must be guaranteed within 5 days, and transparency is mandated. This effectively integrates stablecoins into Singapore’s trusted e-money system. Hong Kong’s regulators similarly (in 2023) announced that only fully backed, licensed stablecoins will be allowed, focusing initially on fiat-backed types and prohibiting algorithmic versions. Both jurisdictions are known as innovation sandboxes – they invite fintech projects to test under supervision. The clear criteria in these markets (e.g. needing a license but then being able to operate widely) mean developers targeting Asian markets can incorporate stablecoins with confidence in legal acceptance. For example, a remittance startup in Singapore can use a stablecoin that MAS has within its framework, ensuring regulators view it as legitimate digital cash equivalent.

• United Kingdom: The UK is in the process of integrating stablecoins into its payments regime. The Treasury has signaled that certain stablecoins will be regulated under existing e-money and payments laws, treating stablecoin payments with the same rigor as bank payments for stability and consumer protection. A proposal calls for issuers to hold reserves at the Bank of England or equivalent protection, and similarly to MiCA, not offer interest. While full legislation is pending, the direction is that the UK will allow stablecoins as a recognized form of payment. The Bank of England is also set to oversee systemic stablecoin firms. This favorable stance (assuming compliance with operational standards) suggests the UK will be a friendly jurisdiction for stablecoin-based financial services.

• Other Notables: Switzerland has been treating stablecoins under existing laws (e.g. as deposits or securities depending on structure) and was an early adopter of crypto regulation, offering clarity through FINMA licensing. Japan passed a law effective 2023 that legalizes stablecoins but restricts issuance to banks, trusts, and licensed agents – a conservative but clear approach that assures any stablecoin in Japan (once approved) is bank-grade. United Arab Emirates (incl. Dubai’s VARA): UAE has embraced crypto innovation; its guidance requires stablecoins to be fully reserved and audited monthly, and the country actively attracts crypto companies with its regulatory certainty. Brazil is drafting rules as well – notably, a proposal would disallow unlicensed stablecoin issuers from enabling self-custody transfers, aiming to force usage through regulated entities for transparency. This shows some emerging markets seek to harness stablecoins but within strict channels.

In summary, jurisdictions like the EU, Singapore, Hong Kong, UAE, and (soon) the UK and US are providing the legal clarity needed for stablecoins to thrive responsibly. This means developers have options to launch pilots or products in environments where the rules of the road are known. For instance, a fintech team might choose to issue a stablecoin-based remittance app in Europe under MiCA compliance or in Singapore under MAS guidelines, thereby reassuring investors and users of its legality. This regulatory clarity reduces compliance costs and uncertainties, enabling smoother cross-border operation as well. As regulations converge on principles of backing and transparency, we see a trend toward global alignment that will further simplify development and adoption. Developers should still be mindful of differences – e.g. licensing processes – but overall the climate is increasingly favorable for legally compliant stablecoin innovation.

Case Studies and Pilot Programs​

Real-world deployments of stablecoins in service of the unbanked are growing in number. These case studies demonstrate both the feasibility (navigating regulatory and logistical challenges) and the benefits achieved. Below are several notable examples across remittances, aid, and savings initiatives:

• Airtm (Cross-Border Payouts in Latin America): Airtm is a digital wallet platform used widely in Latin America for dollar savings and payments. Registered as a U.S. Money Service Business, Airtm integrated USDC stablecoin to help gig workers and professionals receive payments from abroad. Businesses that use Airtm to pay workers achieved ~35% cost savings on cross-border payouts versus traditional methods. This is because stablecoin transfers cut out multiple intermediaries and unfavorable exchange rates. As a case, Airtm shows that a compliant entity (they follow KYC and US regulations) can leverage stablecoins to benefit users: over 160,000 monthly active users transact in USDC on Airtm, many of whom are in countries like Venezuela or Argentina with unstable currencies. Users receive dollars in minutes and can convert to local cash the same day through Airtm’s network of human tellers. This model has empowered people who previously struggled with delayed or expensive international payments. Airtm’s success, enabled by Circle’s transparent USDC reserves and compliance, illustrates a sustainable, legal path for stablecoin use in emerging markets.

• UNHCR & Stellar Aid Assist (Refugee Cash Assistance): In December 2022, the UN Refugee Agency launched Stellar Aid Assist, a blockchain-based aid disbursement system, to send aid to Ukrainian refugees in need. Through this program, UNHCR distributes aid in the form of USDC (a fully reserved, regulated stablecoin) on the Stellar network. Recipients use the Vibrant wallet app to receive and hold funds, and can cash out USDC for local currency at MoneyGram locations (leveraging the Stellar–MoneyGram integration). This pilot was groundbreaking: the UN became “the largest global entity to legitimize the use case” of stablecoins in aid, according to industry observers. The choice of Stellar was deliberate – Stellar’s low fees and partnership with MoneyGram for last-mile cash payout were essential to reach people with no bank accounts or cards. Critically, the program remained compliant by KYC-ing recipients (refugees were registered) and working with regulated entities (MoneyGram, Circle) for currency exchange and issuance. The result is that refugees could get aid instantly and securely on their phones, rather than waiting weeks for wire transfers or handling insecure cash vouchers. UNHCR reported that this method “ensures the money goes exactly where it’s supposed to go” while not putting people at additional risk. This case has inspired other NGOs to consider stablecoins for cash assistance in crises, given its success in speed and accountability.

• Mercy Corps – Syria and Kenya Pilots: Mercy Corps Ventures, the impact investment arm of the NGO Mercy Corps, has actively piloted stablecoin solutions for financial inclusion. In Northeast Syria (2024–25), Mercy Corps launched a pilot to pay smallholder farmers and agribusinesses using a USD stablecoin, circumventing Syria’s collapsed banking system and expensive hawala brokers. Working with local partners and a fintech (HesabPay), they delivered funds via mobile wallets backed by stablecoins, drastically reducing transfer costs and improving security for participants in a sanctioned, conflict-torn economy. This pilot had to carefully navigate compliance – even though humanitarian transactions are exempt from sanctions, Mercy Corps ensured all actors were vetted and that the stablecoin (likely USDC or similar) was handled through a compliant platform. Early results indicate farmers received payments faster and more reliably than before, validating the approach. In Kenya (2025), Mercy Corps partnered with Ripple and startup Dvara to aid pastoralist herders suffering from drought. They delivered relief in the form of a Ripple-issued USD stablecoin (RLUSD) on Ethereum, using smart contract triggers (based on drought index data) to automate payouts. Over 500 herders are targeted to receive ~$75 each when drought conditions hit thresholds. This innovative program shows stablecoins enabling “parametric aid” – funds released on objective criteria – which increases trust and efficiency. Again, compliance was ensured by involving Mercy Corps and using a known stablecoin issuer (Ripple’s entity) under controlled conditions. These Mercy Corps pilots underscore stablecoins’ versatility in humanitarian finance: from conflict zones to climate disasters, they can deliver timely assistance at lower cost, working within legal allowances for aid.

• Latin America Grassroots Adoption (Savings and Commerce): In countries like Argentina, Venezuela, and Nigeria, individuals and small businesses have organically adopted stablecoins as a lifeline. While not a single “program,” this bottom-up case is instructive. For example, Argentina’s high inflation (over 50% annually) drove many locals to convert pesos into DAI or USDC stablecoins as a hedge. Startup apps like Buenbit and Reserve enabled Argentines to save in stablecoins and spend via prepaid cards, operating under local fintech licenses. In Venezuela, where banking was impaired by hyperinflation and sanctions, people turned to dollar stablecoins for everyday transactions – even retail stores in Caracas reportedly started accepting USDT (Tether) for groceries. Such usage often began peer-to-peer and somewhat in legal gray areas, but has become more normalized. In Nigeria, ranked among the top in crypto adoption, stablecoins are used to bypass strict forex controls to pay for imports or tuition abroad. One Nigerian remittance startup in the MIT Solve program used stablecoins to cut remittance costs drastically on UK–Nigeria transfers. Regulators in these countries have taken various approaches (from tacit acceptance to pushing users toward official eNaira in Nigeria’s case), but importantly, no major bans on stablecoins themselves – allowing this usage to flourish for lack of better alternatives. The impact is observed in personal stories: a Venezuelan family preserving their nest egg in USDC instead of bolivar, or a Nigerian student receiving school money via a stablecoin instead of an exorbitant wire. For developers, these cases show an unmet need – and an opportunity to provide user-friendly, compliant interfaces to what people are already doing informally with stablecoins. For instance, developing a Latin America-focused savings app with proper KYC and links to banking partners could formalize and scale the grassroots adoption that’s proven demand.

• MoneyGram Access & Circle’s Partnerships: On the private sector side, partnerships are validating stablecoins in mainstream finance. MoneyGram’s Crypto-to-Cash service (launched 2022–2023) uses Stellar USDC to allow cash pickup of remittances sent as USDC in around 300,000 locations worldwide. This pilot, now expanding, essentially turned stablecoins into an intermediary currency for remittances. Users in, say, the USA can convert cash to USDC (through MoneyGram’s licensed service) and the recipient in the Philippines can receive that USDC and instantly cash it out in pesos at a MoneyGram shop – no bank needed on either side. This program has been successful enough that MoneyGram integrated it into their retail offering, and it serves as a model for leveraging existing compliance infrastructure (MoneyGram is licensed in all jurisdictions it operates) to deliver a crypto-powered service. Similarly, Circle (issuer of USDC) has engaged in partnerships for social impact – working with Airtm (as noted) and also with NGOs. Circle’s initiative “Cross-Border Payments for COVID relief” demonstrated that global aid to medical workers could be done via USDC faster and cheaper. Circle also has a program with Bolivian microfinance app (via Airtm) and others to spread dollar access in unstable economies. These case studies from industry show that when fintech companies collaborate with humanitarian or remittance specialists, stablecoins become a powerful backend that still respects front-end regulations and user experience.

Each of the above case studies reinforces a common theme: stablecoin solutions can be deployed now, in real-world contexts, with regulatory approval and tangible benefits. Whether it’s a global organization like the UN, an NGO like Mercy Corps, or a fintech like MoneyGram or Airtm, the pattern is to integrate stablecoins into existing legal frameworks (registering as needed, partnering with compliant entities) and then leveraging the technology to reach people previously left out. The success of these pilots is encouraging more investment and expansion in this space.

Development Platforms and Tools for Stablecoin Solutions​

From a developer’s standpoint, choosing the right blockchain platform and tooling is crucial for building stablecoin-based applications that are efficient, secure, and compliant. Different blockchains offer different advantages in terms of speed, cost, and ecosystem support. Moreover, there are numerous open-source SDKs, APIs, and platforms that simplify the integration of stablecoins into new applications. Below we survey major blockchain platforms commonly used in fintech and stablecoin projects – including Ethereum, Solana, Polygon, Stellar, and others – and highlight the development tools and opportunities they provide.

Ethereum (and EVM Chains)​

Ethereum is the pioneer of stablecoins – most major stablecoins (USDT, USDC, DAI, etc.) were initially launched as ERC-20 tokens on Ethereum. For developers, Ethereum offers a mature environment with extensive tooling: well-known libraries like web3.js / ethers.js, Truffle/Hardhat for smart contracts, and standards like ERC-20 that ensure any stablecoin token can be easily integrated. The OpenZeppelin library provides audited contracts for issuing tokens, which can be used to create new stablecoins or interact with existing ones safely. While Ethereum’s mainnet has high fees at times, the rise of Layer-2 networks (like Arbitrum, Optimism, Polygon PoS) allows stablecoin transactions with much lower cost, widening access. An example of developer tooling is Circle’s APIs and SDKs: Circle provides a set of APIs that abstract blockchain complexity and let developers accept or send USDC via simple API calls. Using Circle’s developer platform, one can implement stablecoin payments in an app “in just a few hundred lines of code”, handling addresses and confirmations through their SDK. This significantly lowers the barrier to integrating USDC on Ethereum and several other supported chains. Additionally, projects like Zero Hash and Fireblocks offer APIs for stablecoin conversion and custody that handle compliance, so developers can plug stablecoin functionality into fintech apps without directly managing private keys. Ethereum’s vast DeFi ecosystem also provides composability – for instance, a developer building a savings app can tap into lending protocols to offer interest on stablecoin deposits (though offering yield might introduce regulatory considerations like securities laws). Overall, Ethereum’s strengths are its network effects and rich tools, making it a default choice for many stablecoin use cases, especially when on-chain liquidity and composability are needed. The downside is ensuring affordability (hence using Layer-2 or sidechains) and scalability, but ongoing protocol upgrades and L2 adoption are continually improving that.

Solana​

Solana is a high-performance blockchain known for its low latency and low fees, which are attractive qualities for payment use cases. Solana has become a hub for stablecoin transactions – in fact, by 2024 it emerged as “the most used blockchain for stablecoin transfers” by volume. Major stablecoins like USDC are native on Solana, and even PayPal chose Solana as a chain for its PYUSD stablecoin due to its speed and throughput. For developers, Solana offers a different stack (programming in Rust for on-chain programs) and a growing array of tools. The Solana SDK and client libraries in Rust, C++, Python, TypeScript, etc., allow interacting with the chain. Unique to Solana, Solana Pay is a toolkit and protocol specifically for merchant payments using stablecoins (or any SPL token). Solana Pay provides a SDK for point-of-sale and e-commerce integration, enabling merchants to request payments via QR codes or web links that customers approve with their Solana wallet. This is open-source and designed to facilitate adoption of stablecoins in retail. Furthermore, Solana’s design includes features like “token extensions” which allow compliance functionalities at the token level. For example, Confidential Transfers (to hide amounts but still allow audits) and Transfer Hooks (to embed compliance checks or logic on transfers) are built into Solana’s token program and are being used by stablecoins like PYUSD. This means developers building regulated applications have ready-made tools for ensuring privacy or adding KYC logic on Solana, without needing external systems. Solana’s ecosystem also includes wallets like Phantom and Sollet, and infrastructure like Metaplex for tokens, which can be leveraged for user-friendly experiences. With Solana’s high throughput (tens of thousands of TPS), it’s possible to scale to nationwide payment levels – something that has drawn interest from fintech companies. The recent addition of PayPal’s PYUSD to Solana is a testament: “Solana’s speed and scalability make it the ideal blockchain for global financial institutions to create new payment solutions”. Developers targeting mass-market payments or micropayments (e.g. pay-per-use services for unbanked users) may find Solana fits well, given its focus on performance and its support from major payment players.

Polygon and Other EVM Sidechains​

Polygon (POS chain) has become a popular network for stablecoin applications due to its EVM-compatibility (it’s basically an extension of Ethereum) and low fees. Many Ethereum-based stablecoin projects have deployed on Polygon to serve users cost-effectively. For instance, Stripe’s crypto payout pilot in 2022 used Polygon to pay freelancers in USDC because transactions cost pennies and confirm quickly – ideal for frequent small payouts to people in emerging markets. Developers on Polygon can use all the familiar Ethereum tools (Solidity, web3 libraries, Metamask, etc.), which lowers the learning curve. Polygon’s ecosystem also offers specific tools: Polygon SDK for building one’s own sidechain or enterprise chain, and APIs from providers like Alchemy or Infura that support Polygon. The network is secured by a set of validators and periodically checkpoints to Ethereum. For compliance-focused development, one advantage is that any smart contracts or security audits done on Ethereum can be reused on Polygon. Moreover, Polygon ID is a new identity framework on Polygon that can allow privacy-preserving KYC credentials – something a developer could integrate to ensure only verified users access certain stablecoin services. Another advantage: stablecoins on Polygon often have liquidity bridges to Ethereum, so users can on-ramp via Ethereum and then operate on Polygon for cheaper transactions. Polygon’s adoption in developing markets is notable as well – for example, some microfinance and donation platforms choose Polygon to avoid burdening beneficiaries with gas fees. Additionally, Polygon’s enterprise arm has engaged with governments and companies (like in India) for blockchain solutions, potentially smoothing regulatory acceptance of apps built on Polygon. Other EVM-compatible chains like BNB Chain or Avalanche similarly host stablecoins and offer grant programs for developers, but Polygon stands out due to its early focus on inclusion and big partnerships (e.g. Meta, Reddit, and fintechs using it for NFTs and payments). In summary, developers wanting the solidity/Ethereum experience but with user-friendly costs often opt for Polygon, and they can leverage a wealth of open-source code and SDKs that carry over from Ethereum.

Stellar​

Stellar is a blockchain network expressly designed for payments and financial access, making it a natural choice for stablecoin use cases. Stellar was built to connect financial institutions, with built-in support for issuing fiat-backed tokens (“assets”) and a decentralized exchange for forex between tokens. Many regulated stablecoins have launched on Stellar (for example, Circle’s USDC is on Stellar, as are stablecoins for currencies like the Nigerian NGN and Argentine peso via local anchors). For developers, Stellar offers easy-to-use SDKs in multiple languages (JavaScript, Python, Java, etc.) and a RESTful API through Horizon, its API server. The network’s design abstracts much of the blockchain complexity: you can create accounts and send payments with simple function calls. Stellar also has a rich set of Stellar Ecosystem Protocols (SEPs) – basically application-layer standards – that cover things like KYC info transfer, fiat on/off-ramp integration, and multi-signature coordination. For example, SEP-24 and SEP-6 define how wallets can interact with anchors (entities that issue fiat tokens) for deposit/withdrawal. This is very relevant to compliance: a developer building a remittance app on Stellar can integrate an anchor that handles KYC and fiat custody, using the SEP standards to pass user info securely. The Stellar Development Foundation (SDF) provides extensive documentation and even support programs for developers. As noted in MoneyGram’s pilot, Stellar’s open-source resources made integration straightforward. SDF has open-source reference implementations for wallets and anchor servers, which developers can fork to bootstrap their projects. Notably, Stellar’s fee is tiny (fractions of a cent) and it reaches consensus in ~5 seconds, so it’s optimized for high-volume, low-value transactions – exactly the profile of many inclusion use cases (remittances, aid disbursements, micropayments). A significant development is Stellar Aid Assist, which as mentioned, provides a template for NGOs to bulk distribute aid via stablecoins. This platform is available for others to use – meaning developers working with NGOs could tap into that solution rather than reinventing it. In terms of community, Stellar has an active developer community and Community Fund grants, as well as an upcoming smart contract layer (Soroban) which might allow more complex compliance logic on-chain in the future. For now, Stellar’s simplicity and focus on compliance-friendly features (like tags on transactions for memos, whitelisting accounts if needed, etc.) make it a top choice for applications like cross-border payments and currency exchange for the unbanked.

Celo​

Celo is a platform with a mission aligned to financial inclusion. It is a mobile-first, EVM-compatible blockchain that also issues its own stablecoins (cUSD, cEUR, etc., backed by a crypto reserve). Celo’s unique angle is phone number identity and lightweight client syncing, which aims to make using a Celo dApp as easy as a mobile app even on low-end devices. For developers, Celo provides the Celo SDK, composed of ContractKit and DAppKit, which streamlines building mobile dApps. With DAppKit, a developer can easily connect their React Native (Expo) mobile app to the user’s Celo mobile wallet for signing transactions, simplifying the UX for mobile users. ContractKit (a JavaScript/TypeScript SDK) makes it easy to interact with Celo’s core contracts and stablecoin primitives – for example, adding a few lines to transfer Celo Dollars or query balances. Celo was specifically designed to reach the “1 in 3 adults without a bank account,” as their SDK introduction states. This ethos is reflected in features like allowing users to pay transaction fees in stablecoins (so they don’t need to hold the native token for gas). For compliance, while Celo is permissionless like Ethereum, they have an alliance of partners (the Celo Alliance for Prosperity) including many NGOs and local financial institutions, which helps ensure Celo-based projects engage with local regulators and communities. The Celo Foundation and cLabs support developers through initiatives like Celo Camp (an accelerator) and various grant programs. An example case study is Kotani Pay in Kenya, which used Celo to provide a USSD-interface wallet for users without smartphones, enabling them to receive stablecoins that could be converted to mobile money. Celo’s design – ultralight mobile clients and identity mapping – is beneficial for rural or low-infrastructure areas. With Celo joining the broader Ethereum Layer-2 ecosystem (plans underway to transition Celo to an L2 on Ethereum for greater security while keeping costs low), developers can expect even easier interoperability. To summarize, Celo offers a focused toolkit for building user-friendly, mobile-centric stablecoin apps and comes with a supportive community aimed at real-world deployments in developing regions.

Hedera Hashgraph​

Hedera is an enterprise-focused public ledger governed by a council of large corporations and institutions. It introduced a purpose-built toolkit for stablecoins called Stablecoin Studio – an open-source SDK that provides an end-to-end solution for issuing and managing stablecoins on Hedera. This toolkit allows developers (particularly those working with banks or enterprises) to configure a stablecoin with built-in compliance features like oracle-based proof-of-reserves and integration with custody providers. Essentially, it abstracts the heavy lifting of writing smart contracts; Stablecoin Studio uses Hedera’s native token service and consensus service to handle token issuance and transactions with high throughput and finality. One notable use case: Standard Bank (the largest bank in Africa and a Hedera governing council member) used Stablecoin Studio in a proof-of-concept for cross-border remittances within Africa. They praised that the toolkit “speeds up development…allowing businesses to focus on delivering benefits to customers”, highlighting that it prioritizes regulatory compliance and security from the ground up. Hedera’s advantages for developers include fast transactions (seconds) with very low fees ($0.0001 range), and a predictable governance and legal framework (the council model). For those building stablecoin apps for banks or governments, Hedera might appeal because of its controlled and audited environment – for instance, Shinhan Bank of South Korea piloted international remittances using won and rupiah stablecoins on Hedera (an example of a bank-issued stablecoin trial). The existence of grant programs and an active developer community via the HBAR Foundation can provide funding and support. The main difference is that Hedera is not EVM-based (though it supports Solidity smart contracts now), so developers may use its Java/JavaScript SDKs or the Stablecoin Studio CLI rather than Ethereum tools. Still, for many straightforward payment use cases, one might not even need custom smart contracts – Hedera’s native token functionality can cover it. In summary, Hedera offers a enterprise-grade, turnkey approach to stablecoins, suitable for developers working closely with legacy financial institutions who require strong assurances of compliance (e.g. audit trails, account KYC tagging) and performance.

Of course, there are other platforms (Algorand, TRON, Ripple’s XRP Ledger, etc.) where stablecoins live and developers might find opportunity. Algorand has been used for some national digital currency pilots and also hosts USDC; it’s known for a solid tech with quick finality and has developer grants via the Algorand Foundation. TRON, while more associated with retail crypto usage, carries a huge volume of Tether (USDT) transactions at very low cost and has been a de facto network for informal remittances in some Asian and African corridors. Tron’s developer tools are similar to Ethereum’s (as it uses Solidity), but one should be mindful that Tron’s regulatory standing is less clear (the company behind it faced scrutiny). Ripple’s XRP Ledger now supports issuing stablecoins and some projects (like Palau’s USD-backed digital currency pilot) are happening there; Ripple provides tools for issuing tokens on XRP Ledger and has a large financial industry network. Each platform has its pros and cons, but the common trend is that developer tooling is maturing across the board – whether it’s easy-to-use SDKs, comprehensive documentation, or built-in compliance features, it’s becoming simpler to build stablecoin applications on most major chains.

To consolidate the comparison, the table below summarizes major chains and the developer tools and platforms available:

Table: Major blockchains for stablecoin development, highlighting available developer tools and notable integrations.

Each platform above presents opportunities for developers: the choice may depend on the target user base and compliance needs. For instance, if building a wallet for refugees, Stellar or Celo (with their focus on simplicity and identity) might be ideal. For a merchant payment network aiming for retail adoption, Solana or Polygon could be better suited due to throughput and existing payment integrations. Ethereum and its L2s remain essential if interoperability with the broader DeFi/crypto ecosystem is needed (e.g. offering savings yield or leveraging existing infrastructure like MetaMask for user access). It’s also common to use multi-chain approaches – for example, use Stellar or Celo for last-mile delivery to users (low fees on basic phones) but settle or fund via Ethereum where liquidity is high. Tools like Circle’s Cross-Chain Transfer Protocol (CCTP) are emerging to let developers move stablecoins across chains easily, opening the door to apps that seamlessly leverage multiple networks.

Importantly, many of these developer resources are open-source or freely accessible. This means developers in any country can start building without needing to reinvent core components – whether it’s using an SDK to handle wallet key management, or deploying an audited stablecoin contract, or integrating an API for compliance checks. The maturation of these tools is accelerating the pace at which new stablecoin solutions for inclusion can be prototyped and scaled.

Partnerships and Support Programs​

Innovating in the stablecoin-for-inclusion space often requires collaboration and support beyond just technical tools. Fortunately, a growing number of partnerships, consortiums, and grant programs are available to help developers and organizations succeed in this domain. These range from nonprofit initiatives to corporate and government-backed programs:

• NGO and Humanitarian Partnerships: Organizations like Mercy Corps, Red Cross, Oxfam, and UN agencies have become active partners for pilot projects. As detailed, Mercy Corps Ventures launched multiple pilots and also runs the Crypto for Good Fund (C4G), which by 2024 had supported 15+ pilots reaching 40,000+ users. In its latest round, C4G4 (2024–25) explicitly seeks startups leveraging stablecoins to drive financial inclusion in the Global South. This fund provides grant financing and mentoring – an invaluable resource for developers with a great idea but needing initial support. The UNICEF Innovation Fund has similarly given grants/equity to blockchain startups (some involving stablecoins for communities) and even holds some treasury in crypto to deploy for such trials. The World Food Programme and UNHCR have opened the door for partnerships through their blockchain experiments – a developer might collaborate via initiatives like Stellar Aid Assist, essentially providing technology to large aid programs. Also, Oxfam’s “UnBlocked Cash” project (piloted in Vanuatu) used a stablecoin on a private Ethereum instance for disaster aid, in partnership with fintech Sempo, demonstrating NGOs are willing to trial solutions and partner with tech providers. These partnerships not only provide funding but also on-the-ground expertise and user bases to test with.

• Development Finance Institutions and Alliances: Entities such as the World Bank, USAID, and regional development banks have begun exploring stablecoins in the context of remittances and financial inclusion. For example, the World Bank published research on tokenized remittances, and some development funds have sponsored hackathons on cross-border payments. USAID has funded research and small pilots (one report examined using Stellar for digital payments in aid delivery). The Gates Foundation’s Mojaloop open-source payment platform, while not using stablecoins yet, has a community that’s discussing how central bank digital currencies or stablecoins could interoperate for inclusion – a developer plugged into those communities could find support and a pathway to real deployments in national payment systems. Additionally, alliances like the Better Than Cash Alliance (a UN-hosted alliance of governments and companies for digital finance) have interest in how stablecoins can reduce cash reliance. Being aware of and involved in these initiatives can give developers access to policy advice, regulatory sandboxes, and sometimes funding or endorsements.

• Corporate and Fintech Programs: Major fintech and crypto companies are sponsoring innovation in this space. Visa and Mastercard have both launched crypto integration programs – e.g., Visa has partnered with Circle to settle transactions in USDC, and Mastercard ran a program called Start Path Crypto which included some stablecoin startups focusing on emerging markets. Ripple’s Impact Fund provided $10+ million to NGOs (like Mercy Corps and others) to explore blockchain solutions; Ripple specifically partnered in the Kenyan herders project, contributing $25k in stablecoins. Stellar Development Foundation has an Enterprise Fund that has invested in companies building on Stellar (like Flutterwave for African payments). Celo’s Alliance for Prosperity connects over 100 organizations (from Grameen to PayPal to startups) all interested in blockchain for social impact – joining that alliance can lead to valuable mentorship and partnership opportunities. Exchanges like Binance (via Binance Charity) and Coinbase (via their philanthropy arm) have also funded pilot programs (Binance Charity did stablecoin donations in Uganda, for instance). Moreover, hackathons such as the annual ETHGlobal hackathons, Solana hackathons, etc., often have an “impact” or “financial inclusion” track sponsored by organizations looking to award prizes to promising ideas (and those prizes can be sizable seed funding).

• Government and Regulatory Sandboxes: Some forward-thinking governments have created sandboxes or accelerators for crypto-inclusive finance. Bahrain and Abu Dhabi (UAE) have sandbox programs where a stablecoin remittance or microfinance project could be tested with regulatory supervision but without full licensing immediately. Singapore’s MAS ran a Global CBDC challenge that, while focused on central bank coins, also embraced ideas around privately issued stablecoins for inclusion. UK’s FCA has a sandbox that has admitted crypto asset projects; a stablecoin-based cross-border payment startup could apply and get temporary permissions to operate and iterate. Such programs often involve working closely with regulators – which can be advantageous in shaping sensible rules if the pilot succeeds. In Latin America, countries like Colombia and Mexico have fintech sandboxes under their fintech laws, which might allow stablecoin-related projects (Mexico’s fintech law regulates e-money and possibly could cover peso stablecoins). Leveraging these can not only ensure compliance but also signal to investors that the project is being built hand-in-hand with authorities.

• Open-Source Communities and Academics: There are also less formal but important support systems in the open-source community. Projects like Mifos/Apache Fineract (open-source core banking software for microfinance) are exploring integration with crypto – a developer contributing there might integrate stablecoin wallets in a microfinance institution setting. Hack4Impact and university blockchain clubs (e.g., at UC Berkeley or MIT) often collaborate on social good projects and can rally talent to help a cause-driven startup. Academically, the MIT Digital Currency Initiative and Stanford’s blockchain program sometimes partner with NGOs to prototype solutions, bringing research credibility and technical audits.

In essence, developers and startups in this arena are not alone – a wide network of supporters is interested in the success of stablecoins for financial inclusion. Reaching out to these programs can provide essential resources: funding, expert guidance on regulatory compliance, access to pilot users, and credibility. Many successful case studies discussed earlier had backing from such partnerships (UNHCR with Stellar, Mercy Corps with Ripple, Airtm with Circle, etc.).

It’s also worth mentioning that as stablecoin use in underserved markets grows, local partnerships are key. Working with local mobile money providers, microfinance institutions, cooperatives, or telecoms can accelerate user adoption. For example, a developer might integrate a stablecoin wallet with a mobile money agent network (similar to how Wave in Senegal or MTN in Africa operate) to reach rural users – these partnerships help with cash-in/cash-out and trust-building, while the tech provider handles the blockchain side.

Finally, governments themselves are partnering in some cases. For instance, El Salvador, after its Bitcoin move, considered stablecoins for certain uses; Palau partnered with Ripple on a national stablecoin for USD; and Colombia reportedly ran a pilot for distributing subsidies on a blockchain wallet. These public-private partnerships indicate that being open to collaborating with central banks or finance ministries (when they show interest) could lead to groundbreaking projects (albeit with longer timelines).

In conclusion, stablecoins present a unique convergence of technology, finance, and social impact. The use cases that comply with existing regulations – like remittances, aid, and savings – have demonstrated powerful results in reaching the unbanked. Regulatory clarity is steadily improving in many jurisdictions, removing barriers to innovation. Developers have at their disposal an expanding arsenal of open-source tools and supportive platforms across multiple blockchains, lowering the technical hurdles. And importantly, a robust ecosystem of partners – from NGOs to fintech firms to enlightened regulators – is ready to back solutions that can improve lives and expand financial access. By thoughtfully combining these elements, developers can seize the opportunity to build the next generation of stablecoin applications that are not only groundbreaking but also compliant and inclusive – helping bring millions of people into the global financial fold.

Sources: Stablecoins enable faster, cheaper remittances and aid payments; UNHCR’s Stellar-based stablecoin aid to Ukrainian refugees; Regulatory frameworks like EU MiCA provide clarity; Singapore’s MAS stablecoin rules; MoneyGram and Stellar partnership for cash-to-USDC for the unbanked; Mercy Corps stablecoin pilot results; Airtm and Circle’s USDC case study (35% cost savings); Solana’s adoption for payments (PayPal PYUSD); Stellar’s developer tools and anchor network; Hedera’s Stablecoin Studio for compliant issuance; Mercy Corps Ventures Crypto for Good Fund impact; Stablecoin remittance cost reduction UK-Nigeria; Shopify and merchant stablecoin payments; and others as cited throughout.