Stablecoins Fuel 24/7 Settlement in Australia's Treasury Operations

A new study by Zodia Custody reveals that stablecoins are playing a crucial role in Australia's financial infrastructure, serving as the "quiet plumbing" behind key operations such as payments, treasury management, and trading. The study highlights that Australian entities-ranging from digital asset exchanges to Web3 treasuries-are increasingly using stablecoins for intraday liquidity, instant settlement, and cross-border transactions. This adoption is driven by practical utility rather than speculation, reflecting a broader shift toward implementation in the digital asset landscape according to the report.

The Zodia report identifies five key use cases where stablecoins are already delivering value, including acting as operational float for financial institutions and enabling 24/7 settlement capabilities. These attributes make stablecoins particularly valuable for Australia's role as a liquidity bridge between the U.S. and Asia, where traditional banking systems do not operate around the clock. Stablecoins allow Australian firms to manage risk and access global liquidity pools even when domestic banks are closed and operational.

Australian high-net-worth individuals and family offices are also leveraging stablecoins to access tokenized U.S. Treasuries, institutional liquidity pools, and stablecoin reward mechanisms. These tools provide an alternative to idle cash balances and align with the demand for stable, regulated yield from Self-Managed Superannuation Funds (SMSFs). The report notes that this adoption is pragmatic and reflects the maturation of Australia's digital asset ecosystem.

Why Stablecoins Matter for Australia's Financial Infrastructure

Australia's unique position as a regional liquidity bridge means it often operates in a window where U.S. markets are closing and Asian markets are opening. Traditional banking systems are not equipped for 24/7 settlement, creating a gap that stablecoins fill effectively. By enabling fast and seamless transactions, stablecoins allow Australian firms to manage treasury operations and settle high-value cross-border payments without delays.

This is particularly important for businesses that operate across multiple time zones and need to move funds between global entities. For instance, Australian companies can use stablecoins to pay offshore teams, regional suppliers, and international contractors in real-time. The ability to settle transactions instantly also makes atomic delivery-versus-payment (DvP) for digital assets possible, reducing counterparty risk and increasing efficiency in trading.

The role of stablecoins in treasury management is also expanding. With their ability to provide USD exposure and daily liquidity, they are increasingly used in tokenized fixed-income products. This trend is especially relevant given Australia's large pool of retirement savings, with SMSFs seeking yield in stable, regulated instruments. Tokenized U.S. Treasuries, for example, offer a compelling option for SMSF managers looking to diversify their portfolios according to the study.

Regulatory Developments and Market Growth

Recent regulatory changes in Australia have further supported the growth of stablecoin adoption. The Australian Securities and Investments Commission (ASIC) has finalized exemptions that remove licensing requirements for stablecoin intermediaries and allow the use of omnibus accounts. This development reduces compliance costs and creates a more flexible framework for businesses distributing stablecoins and wrapped tokens.

Industry leaders have welcomed these changes, noting that they level the playing field for new and established stablecoin issuers. Drew Bradford, CEO of Macropod, emphasized that the new rules remove friction from the sector and provide clarity for real-world use cases, including payments, treasury management, and onchain settlement. Angela Ang from TRM Labs also praised the move, saying it signals Australia's intent to remain competitive in the global digital asset space according to industry sources.

The market for stablecoins is already expanding rapidly. According to RWA.xyz, the total stablecoin market capitalization has reached over $300 billion, with Tether maintaining a 63% market share. This growth is being driven by increased adoption in both retail and institutional sectors, as well as by the development of cross-border payment platforms that integrate stablecoin infrastructure according to market analysis.

What This Means for Investors and Financial Institutions

For investors, stablecoins are becoming an essential part of a diversified portfolio, especially for those seeking yield and liquidity. High-net-worth individuals in Australia are using them to access products like tokenized U.S. Treasuries and institutional liquidity pools, which offer a blend of USD exposure and daily liquidity. These tools are particularly attractive for SMSF managers looking to optimize returns while maintaining stability according to the report.

Financial institutions are also integrating stablecoins into their operations. For example, Eightcap, a global multi-asset broker, has expanded its use of Orbital's stablecoin payment rails to support seamless funding and settlement across more than 120 countries. The integration allows for near-instant deposits and withdrawals and helps manage FX risk. Stablecoins are now central to Eightcap's embedded partnerships with crypto exchanges and fintech platforms, enabling regulated derivatives trading.

Other platforms, like Conduit, are also leveraging stablecoins to unify fiat and cryptocurrency payments under a single infrastructure. Conduit's new multicurrency virtual accounts allow businesses to hold USD, EUR, and GBP on a single platform and make near-instant payouts in 15 fiat currencies and multiple stablecoins. These accounts are supported by partnerships with nearly 30 banks globally and offer customizable fees, making them a versatile tool for cross-border operations according to industry reports.

As stablecoins continue to integrate into Australia's financial ecosystem, their role is expected to expand beyond treasury and payments to include tokenized capital markets and decentralized finance (DeFi) platforms. With regulatory clarity, growing infrastructure, and practical use cases, stablecoins are proving to be a foundational element of Australia's evolving digital financial landscape according to the analysis.