The New Payment War: Google, Stablecoins, and the Rise of STaaS

KEYTAKEAWAYS

TABLE OF CONTENTS

• KEY TAKEAWAYS
• THE RISE OF PAYMENT CHAINS AND GOOGLE’S ROLE
• THE STABLECOIN-AS-A-SERVICE MODEL AND KEY PLAYERS
• THE COLLISION OF TRADITIONAL PAYMENTS AND WEB3
• FUTURE TRENDS AND MARKET OPPORTUNITIES
• DISCLAIMER
• WRITER’S INTRO

CONTENT

THE RISE OF PAYMENT CHAINS AND GOOGLE’S ROLE

As cryptocurrencies edge closer to mainstream adoption, “payment chains” have emerged as the next big frontier. Unlike general-purpose blockchains such as Ethereum or Solana, these networks are purpose-built for payments and settlements. They focus on speed, low fees, and regulatory compliance. Over the past two years, Stripe introduced Tempo, Circle launched Arc, and Visa and Mastercard began piloting stablecoin settlements. In 2025, Google Cloud joined the race with its Universal Ledger (GCUL), signaling that big tech is ready to compete in this space.

Google is not trying to become a stablecoin issuer itself. Instead, it positions GCUL as a financial-grade, neutral ledger that banks, fintech firms, and merchants can use to issue and settle stablecoins. While Stripe ties Tempo directly to its payments network and Circle designs Arc around USDC, Google aims to leverage its massive cloud business and its consumer entry points through Android and Google Pay. The goal is to become the infrastructure layer of the new payments stack. By providing secure, compliant tools on GCUL, Google hopes to set standards for cross-border settlement and everyday retail transactions.

The shift is profound. Traditional payments depend on legacy rails such as SWIFT or card networks, often taking days and charging high fees. A payment chain can process the same transfer in seconds at almost no cost. With Google stepping in, stablecoin payments now have a path to billions of users. For Visa and Mastercard, this is a direct challenge. For Ethereum and other public blockchains, it raises a different question: can they still capture payment value when permissioned networks built by tech giants move faster?

THE STABLECOIN-AS-A-SERVICE MODEL AND KEY PLAYERS

If payment chains are highways, “Stablecoin-as-a-Service” (STaaS) is what lets businesses merge onto them. STaaS takes the complexity of issuing and managing stablecoins and turns it into a ready-to-use service. Companies don’t need to build custody systems or compliance processes from scratch. Instead, they can plug into APIs or white-label solutions and launch their own stablecoins quickly. The concept borrows from Banking-as-a-Service, but with a sharper focus on tokenized money.

Circle, Stably, and GMO are among the most active players. Circle, the company behind USDC, not only provides one of the most widely used dollar tokens but also offers APIs that let businesses integrate USDC into payments and treasury operations. In 2024 it launched Arc, a dedicated stablecoin chain to strengthen its ecosystem. Stably positions itself directly as a STaaS provider, promising branded stablecoins in just two months while handling custodians and auditors in the background. In Japan, GMO Internet and Nomura built a service stack to help firms issue yen and dollar stablecoins, covering everything from licensing to circulation.

This model matters because it lowers the barrier to entry. An e-commerce platform or ride-hailing app can offer stablecoin payments without touching blockchain infrastructure itself. PayPal’s PYUSD, issued with help from Paxos, is already a textbook example of STaaS at work. As more companies adopt these services, stablecoins will spread across cross-border payments, corporate treasury, and retail checkout. For Google, STaaS is the missing piece: it complements GCUL by driving more businesses onto payment chains and scaling the ecosystem.

THE COLLISION OF TRADITIONAL PAYMENTS AND WEB3

Google’s move also shakes up traditional payments. For Visa and Mastercard, stablecoins threaten their core economics. A cross-border card payment often carries 1.5%–3% in fees and takes days to clear. A stablecoin transfer is instant and nearly free. With Google Cloud already accepting PYUSD and Stripe testing Tempo for settlements, merchants and consumers will naturally gravitate to the cheaper, faster option.

Legacy players are not standing still. Visa is piloting USDC settlements with merchants, while Mastercard has added support for tokens like USDG, PYUSD, and USDC. Apple is reportedly in talks to add stablecoins to Apple Pay. Once Google brings stablecoins into Google Pay or Android directly, the contest will no longer be just between card networks. It will be fought among tech giants, financial institutions, and crypto-native firms.

Inside the Web3 community, the reaction is divided. Many see the influx of big tech as the key to scaling stablecoins to mainstream use. Others worry about value capture. If most stablecoin activity flows to permissioned chains like GCUL, Arc, or Tempo, Ethereum and Solana could lose ground in payments. The tension between decentralization and efficiency is becoming sharper. Regulation adds another layer: the US Congress is pushing stablecoin laws, the EU has introduced MiCAR, and Japan legalized compliant stablecoins in 2023. This gives companies like Google a legal path to scale, but it also fuels fears that Web3 values will be compromised.

FUTURE TRENDS AND MARKET OPPORTUNITIES

The direction of stablecoin payments is now clear. In 2024, transaction volume topped $5 trillion, surpassing global remittances. With regulatory clarity and institutional adoption, stablecoins are set to become core infrastructure for cross-border transactions, treasury management, and retail use over the next five years. Payment chains and STaaS will drive this together: one as the ledger, the other as the gateway.

Google’s advantage lies in the combination of cloud, consumer products, and developer tools. Google Cloud can host compliant financial ledgers, Google Pay and Android can reach billions of users, and Firebase can lower integration costs for apps. This positions Google strongly in the payment chain race. But no single player will dominate. Apple, Visa, Mastercard, and global banks are all investing. Public blockchains are innovating with programmable payments and cross-chain systems. The likely outcome is a layered ecosystem where permissioned chains, public blockchains, tech firms, and financial institutions all connect.

For startups, the openings are real. They can build stablecoin issuance platforms for banks, offer payment gateways for cross-border e-commerce, or design supply chain finance and savings products around stablecoins. Interest earned on reserves creates a new revenue stream and a chance for novel business models. The challenge will be balance: meeting compliance, ensuring security, and preserving openness. Whoever manages that balance will shape the next era of global payments.