Stablecoin as a Service Drives Growth Amid Liquidity Concerns

With the Stablecoin-as-a-Service (SCaaS) model, any business or platform can issue its stablecoin without building a complex infrastructure.

The opportunity is vast, but it comes with risks of liquidity fragmentation, reserve transparency, and evolving global regulatory frameworks.

Anyone Can Issue Stablecoin

Data from CoinGecko shows that the stablecoin segment currently has a market capitalization of around $306 billion and 355 different coins. Although quite popular today, not everyone can issue and manage stablecoins effectively.

StAblecoin market capitalization. Source: CoinGecko

However, a new stablecoin model allows businesses, platforms, or organizations to issue and manage stablecoins without building the entire infrastructure from the ground up.

This model includes standardized mint/burn, customizable reserve mechanisms and fees, and third-party operating interfaces. This is Stablecoin-as-a-Service (SCaaS).

The most recent example is Stripe’s Open Issuance program (launched in September 2025). It enables businesses to mint/burn stablecoins freely and customize fees and reserve allocations while sharing profits from yield after a certain fee. Ethena Labs provides a white-label solution for applications or blockchains. Tech giants like Google have reportedly tested a payment protocol for AI agents using stablecoins, while custodians such as BitGo have also entered the market.

“Stripe announces Stablecoin as a Service. Any company can deploy stablecoins with just a few lines of code. BlackRock, Fidelity, or Superstate manages reserves. An X user commented about Stripe’s SCaaS.

The SCaaS model lowers entry barriers by allowing virtually any business to issue its stablecoin. It also supports tailored stablecoins for specific products or target markets and gives wallets/exchanges/chains additional tools to distribute products with yield potential.

Some users on X argue that SCaaS will become increasingly important as stablecoins become commodities and distributors (wallets, exchanges, chains) seek yield opportunities. Others suggest that SCaaS could be a lifeline for many blockchains struggling to achieve token-market-fit.

High Potential, High Risk

Nonetheless, the risks are significant. Multi-issuance models create the possibility of liquidity fragmentation. For instance, multiple “USD-pegged” stablecoins may coexist but differ in reserves, transparency, or redemption reliability.

Market dynamics could turn SCaaS into a yield-driven bet: issuers might optimize reserve profits to stay competitive, sometimes taking on liquidity risks or investing in less liquid assets. This leaves vulnerabilities when redemptions suddenly surge.

From a legal and operational perspective, SCaaS demands absolute transparency on reserve composition, insurance/redemption mechanisms, and independent auditing processes.

Regulatory decisions at national or regional levels could drastically reshape the multi-issuance landscape.

Even so, SCaaS is still expected to be a natural step forward as stablecoins steadily evolve into a global payment instrument.