Why stablecoin infrastructure has found product–market fit

Hi there, it’s Mark from Shuttle here doing a takeover of this week’s newsletter 👋

This week, we're drawing back the curtain on a complex but fundamental shift in modern finance: the convergence of stablecoins and global regulation.

Before joining the team at Shuttle, I spent the last few years working as a policy advisor and management consultant; first advising the Irish Department of Finance, and then digital asset banks and exchanges. Here I advised on the EU’s landmark digital asset regulation, called the Markets in Crypto Asset Regulation, or more commonly referred to as, MiCAR. 

I had a front row seat in watching and taking part in both the Irish and European response to the risk and opportunities posed by the rise of digital assets. 

During this period we witnessed the moments that shaped Europe’s stance on privately issued currencies, such as the initial concern sparked by Meta’s Libra coin project, and the subsequent, rapid growth of experimental algorithmic stablecoins that culminated in the spectacular collapse of Terra Luna. 

Since those chaotic days, the stablecoin market looks entirely different as policymakers established essential rules to protect market participants, while entrepreneurs and engineers innovated to create compliant stablecoins. Officials in the EU and other global institutions recognised the potential of fully backed stablecoins to boost cross-border payment efficiency and financial inclusion. 

In the space of a few short years, we have witnessed the growth of institutional and retail demand for stablecoins as a means to digitally transfer assets backed by hard currency across different payment channels and across the globe. As a result, the market has matured significantly. 

How Stablecoins differ to Crypto

Stablecoins have gone from experiment to core plumbing. On‑chain volumes now sit in the tens of trillions of dollars a year, already comparable with, and in some periods ahead of, card networks like Visa and Mastercard. The numbers move around, but the direction is consistent: up and to the right, even when speculative markets are flat.

From our side, building a regulated platform in Europe, it’s become hard to ignore. The interesting question now isn’t if stablecoins matter. It’s which ones, under which rules, and who builds the rails that treasurers and product teams can actually use.

This edition is about that shift, and why our next investment drop focuses on a European stablecoin infrastructure platform built for companies, not traders.