When Apple introduced the iPhone, Steve Jobs often talked about a core philosophy: Innovation isn’t just about improving what people already use – it’s about creating solutions to problems they don’t yet realize they have. Consumers weren’t asking for a touch screen computer in their pocket, an all-in-one camera, a GPS device, a music player and an internet communicator. But once the technology existed and the use cases became clear, adoption followed and behavior changed.

Stablecoins may be at a similar moment today. Consumer awareness and understanding are still developing, and most people are not actively expressing a need for digital dollars on blockchain rails. The reality, however, is precisely what makes this stage so important. This spurred us to conduct some primary consumer and small business research with our Raddon Research Insights program, including a December 2025 survey of roughly 1,500 consumers and 1,300 small business owners and decision makers. The genesis of our research was not to measure demand for a product consumers already know they want, but to explore the underlying use cases that could make stablecoins relevant in everyday financial life – from payments and transfers to security, speed, and new forms of financial access. Like the early days of the iPhone, the opportunity lies in identifying where real-world friction exists today and examining how an emerging technology might address needs consumers have not yet named.

Figure 1: Consumers that have heard the term “stablecoin”

Headline findings and what surprised us

The research uncovered some notable patterns:

• Awareness does not equal understanding. While 38% of consumer respondents said they were familiar with the term “stablecoin,” knowledge gaps were striking. We tested six true/false statements about stablecoins; only about 3% of respondents answered five or six correctly. Even among those who said they were “very familiar” with how stablecoins work, accuracy barely budged.

Source: Stablecoins, Raddon Research Insights, 2025

• Framing moves the needle. When we asked about a digital currency explicitly described as backed one-to-one by U.S. dollars and regulated under federal law, roughly half of consumers said they’d be very or somewhat comfortable using it. That demonstrates the value of plain-language education focused on backing and regulation
• Generations matter. Comfort with a regulated digital dollar skewed dramatically younger: More than three out of four millennials, roughly two-thirds of Gen Z and a majority of Gen X reported comfort. Boomers and traditionalists were much less receptive.
• Crypto activity is not trivial. Around one in five respondents say they regularly use cryptocurrency today, and another portion use it occasionally. Together, they represent a base of digital-currency–literate consumers that institutions can learn from and build on.
• Small businesses are farther along. Small business owners were more likely than consumers to say they were familiar with stablecoins – more than half said they were very or extremely familiar, and another 22% said they were somewhat familiar. That combination of greater familiarity and practical payment needs positions small businesses a logical early audience.

Where consumers and businesses see value

Across both groups, the clearest use cases were rooted in payments and reducing friction:

• Small businesses need faster cash flow. Accelerating payments from customers and enabling faster supplier payouts repeatedly surfaced as a core pain point. Anything that meaningfully speeds settlement can improve small-business liquidity – and that’s always a compelling value proposition.
• Lower-cost cross-border transfers are a compelling application. Where remittance fees are high and settlement slow, a digital-dollar rail that reduces cost and time is a clean use case with objective benefits.

Figure 2: Send money to friends or family living outside the United States

Source: Stablecoins, Raddon Research Insights, 2025

• Programmable payments attracted interest. Automated, milestone-triggered payouts (for example, gig-economy payouts on delivery or project completion) resonated with respondents: More than half expressed some interest, about one in four were unsure and roughly one in five were not interested. Programmability won’t be universally adopted overnight, but it’s compelling where friction and timing are real issues.
• Retail wallet behavior poses potential deposit risk. We heard consistent signals that consumers will move funds if incentives are present, for example, loyalty or discounts delivered through a retailer’s wallet. That raises a strategic question for deposit providers: How do you retain balances if consumers are willing to park funds in nonbank wallets for convenience or rewards?
• Card interchange income could face pressure. If large retailers such as Amazon and Walmart incentivize new digital payment options to reduce transaction and interchange costs, issuers’ existing interchange revenue could be at risk. However, our research highlighted an important dynamic: Credit card users who spend the most but pay their balances in full each month are the least likely to switch payment methods. This segment appears especially entrenched in today’s rewards ecosystems and established card habits, making them one of the more difficult groups to influence when it comes to changing payment behavior.

Figure 3: Openness to new payment methods by credit card segments

Source: Stablecoins, Raddon Research Insights, 2025

What this means for financial institutions

The findings suggest the following strategic priorities for financial institutions:

• Start with education. Low baseline knowledge means institutions that can clearly explain backing, regulation and protections will build credibility fast. Plain-language collateral, FAQs, in-branch conversations and targeted digital campaigns will move people from curiosity to consideration.
• Use trust as a differentiator. Our research suggests people naturally look to banks and credit unions as trusted issuers. For business owners specifically, stablecoin capabilities offered through their business banking or merchant services provider would significantly influence where 50% of them choose to bank. That dynamic gives incumbents an advantage if they act deliberately and communicate clearly.

Figure 4: Which provider small businesses would trust most for stablecoin services. Base: SMBs likely to adopt stablecoins in the next 12 months

Source: Stablecoins, Raddon Research Insights, 2025

• Consider potential deposit flight risks. As digital wallets and alternative rails grow, institutions should model deposit leakage scenarios and design both defensive and offensive responses: integrated auto-conversion, yield alternatives or value-added wallet features that keep customers in the fold.
• Partner smartly. Not every institution needs to build every layer. Partnerships with custody providers, wallet platforms or regulated technology providers can accelerate time to market while helping control operational and compliance risk.
• Design for conversion preferences. Many merchants prefer immediate fiat conversion or brief holding periods rather than leaving funds indefinitely in-rail. Product design should reflect those preferences and offer smooth, low-friction conversion options.
• Keep a close eye on the regulatory landscape. The legislative frameworks and supervisory guidance that emerge will shape product design, reserve practices and customer disclosures. Staying ahead on compliance and transparent communication is essential.

We don’t expect stablecoins to replace existing rails overnight, but our research suggests there will be gradual momentum where the technology solves clear pain points. The early winners will be institutions that combine thoughtful education, targeted pilots and the trust advantage they already hold.

If you’re asking where to begin, look for pockets of genuine friction in your consumer and small business base – payroll timing, supplier terms, cross-border corridors – and consider whether a digital-dollar solution measurably improves speed, cost or certainty. Those are the places where innovation becomes adoption, and adoption becomes a new normal. Just like that iPhone in your pocket you once never knew you needed, stablecoins might eventually become the payments habit you can’t live without.

Visit the Raddon Research Insights page for additional details on the full report. Raddon Research Insights subscribers can access the report directly through their institution’s RRI library page. To view an on-demand recording of a complimentary webinar where we reviewed the findings, contact us at solutions@raddon.com for access.