Stablecoins in Australia: What They Are and How Businesses Use Them
USDT and USDC are stable digital assets used by Australian businesses for fast, predictable payments and global transactions. This guide explains what stablecoins are, how they work, and why they are becoming essential for modern business workflows.
Australian businesses use stablecoins to accept stablecoin payments and manage settlement more efficiently within modern payment workflows.
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What are Stablecoins?
Stablecoins are digital assets designed to maintain a stable value, most commonly by being backed by high-quality reserves such as cash or short-dated government securities. Unlike cryptocurrencies that experience significant price volatility, stablecoins are engineered to remain consistent in value, making them suitable for payments, invoicing, and modern business workflows.
Why Stablecoins Hold a Stable Value
Stablecoins maintain price stability through reserve backing or collateralisation. Each token is supported by underlying assets held by the issuer or protocol, providing confidence that the stablecoin’s value will remain aligned with its reference currency during a transaction or settlement cycle.
This stability is a key reason stablecoins are used in commercial and operational contexts rather than speculative trading.
The Three Main Types of Stablecoins
Most stablecoins fall into one of the following categories:
- Fiat-backed stablecoins - backed 1:1 by reserves of cash or cash-equivalents held by regulated custodians (e.g. USDT, USDC).
- Crypto-backed stablecoins - collateralised by other digital assets and typically over-collateralised to manage price volatility.
- Algorithmic stablecoins - use software-based supply mechanisms rather than external reserves to maintain their target value.
The Most Widely Used Stablecoins in Australia
USDT and USDC are the most commonly used stablecoins by Australian businesses. They are widely adopted due to:
- Predictable settlement outcomes
- Reliable value transfer
- Broad compatibility with global payment infrastructure
These characteristics make USDT and USDC suitable for commercial payments, cross-border transactions, and international business operations. Explore which industries benefit from stablecoin payments in Austrlalia.
How Stablecoin Transactions Work
Stablecoins operate on public blockchain networks, enabling businesses to transfer value:
- Quickly
- Securely
- Without reliance on traditional banking windows or correspondent banking systems
Transactions are settled on-chain and typically complete within minutes, without being restricted by cut-off times, weekends, or public holidays.
Why Stablecoins Are Useful for Australian Businesses
Stablecoins allow Australian businesses to:
- Receive payments from international clients
- Support global operations without complex banking infrastructure
- Simplify financial processes and reduce settlement delays
They provide a predictable, low-friction alternative to traditional cross-border payment methods while maintaining transparency and traceability. These benefits are underpinned by the underlying settlement and verification mechanics that explain how stablecoins work on public blockchains.”
Why Stablecoins?
Stablecoins provide businesses with a digital asset that is stable, easy to transfer, and suited to modern business workflows. Australian organisations use stablecoins to move value efficiently, support international clients, and reduce delays commonly found in traditional payment methods.
Fast Settlement
Stablecoin payments typically settle within minutes, improving cash-flow visibility and enabling faster confirmation of inbound funds compared to traditional banking rails.
Predictable Value
Stablecoins maintain a consistent value, allowing businesses to rely on clear and dependable settlement outcomes without exposure to the price volatility associated with other digital assets.
Global Utility
Stablecoins can be sent and received globally without dependence on banking hours, correspondent banking networks, or time-zone cut-offs, making them suitable for international operations.
Broad Support
USDT and USDC are widely supported across digital wallets, financial tools, and global payment infrastructure, ensuring compatibility across a wide range of business systems.
How Stablecoins Work
Stablecoins maintain a consistent value by combining reserve-backed stability, transparent reporting, and blockchain-based settlement. This structure is explained in more detail in our guide on how stablecoins work across payment and settlement workflows.
Backed by High-Quality Reserves
Stablecoins such as USDT and USDC maintain their value by being supported by reserves that include cash, cash-equivalents, and short-dated government securities. These reserves help ensure each token remains aligned with its intended value and can be redeemed by authorised participants.
Issued on Public Blockchains
Stablecoins operate on established public blockchain networks, enabling secure, transparent, and near-instant settlement of transactions. Because transfers are validated on-chain, stablecoins can be sent globally without relying on traditional banking infrastructure.
Transparent Supply and Reporting
Leading stablecoin issuers publish regular disclosure reports outlining the assets backing their tokens and the total supply in circulation. This transparency allows businesses to understand how stability is maintained and supports strong governance practices.
Fast, Borderless Settlement
Stablecoin transactions settle on-chain and are available 24/7, regardless of location or banking hours. This makes them well suited for international payments, recurring invoices, and time-sensitive business transactions.
Programmable and Digital-Native
Because stablecoins operate on smart-contract platforms, they can integrate with invoicing systems, automated workflows, and digital business processes. This programmability supports efficient movement of value across a wide range of commercial applications.
Consistent Value for Business Operations
Stablecoins are designed to maintain a steady value, making them practical for invoicing, subscription billing, supplier payments, and commercial settlements. Their stability helps businesses avoid unpredictable settlement outcomes associated with other digital assets.
How Businesses Use Stablecoins
Stablecoins operate on public blockchain networks, enabling secure, transparent, and near-instant settlement of value. Payments can move globally without waiting for bank processing windows or correspondent banking pathways, making stablecoins suitable for a wide range of commerical use cases.
Why Businesses Use Stablecoins
Organisations adopt stablecoins for online services, B2B payments, recurring invoices, and international clients who require predictable and reliable payment confirmation. The stability of USDT and USDC makes them suitable for high-value or time-sensitive transactions where delays would otherwise introduce friction.
Stablecoins are commonly used as a settlement layer rather than a speculative asset, particularly for invoicing clients and managing predictable payments.
Where Stablecoins Fit in Your Workflow
In practice, businesses include a stablecoin payment address on invoices or agreements, a process commonly referred to as crypto invoicing with stablecoins. This approach reflects how businesses use stablecoins for payments in real-world workflows.
Where Stablecoins Provide the Most Benefit
Stablecoins are particularly effective for organisations that:
- Work with international or cross-border clients
- Operate subscription or recurring billing models
- Rely on fast confirmation of inbound payments
- Manage remote teams or global suppliers
- Handle high-value or project-based transactions
In these scenarios, stablecoins provide a reliable settlement mechanism with fewer delays and fewer intermediaries than traditional payment methods. Explore how FastStables helps businesses enable stablecoin payments.
Types of Stablecoins
Stablecoins maintain a consistent value by combining reserve-backed stability, transparent reporting, and blockchain-based settlement. Understanding how they work provides the foundation for how businesses use them in modern payment workflows. To understand how these categories work in practice, it helps to start with a clear definition of what a stablecoin is.
Fiat-Backed Stablecoins
Backed 1:1 by reserves of cash or cash-equivalents such as U.S. Treasury bills or bank deposits. These reserves are held by regulated custodians and audited regularly to verify backing.
Examples: USDT (Tether), USDC (USD Coin)
Best for: Payments, invoicing, settlement, predictable business workflows.
Crypto-Backed Stablecoins
Collateralised using other digital assets rather than cash. These stablecoins are typically over-collateralised to protect against market volatility, with smart contracts automatically managing deposits and withdrawals.
Examples: DAI
Best for: Digital-native businesses, DeFi integrations, programmable finance.
Algorithmic Stablecoins
Maintain stability using software-based supply adjustment mechanisms rather than external reserves. Algorithms expand or contract supply based on market conditions to keep the value near the target price.
Examples: Algorithmic stablecoins are generally not used for commercial payments in Australia.
Best for: Experimental or niche blockchain applications.
Stablecoin Regulation in Australia
Stablecoins such as USDT and USDC are legal to use in Australia, and businesses can accept them for payments, invoicing, and commercial transactions. While Australia does not yet have a dedicated stablecoin regulatory framework, stablecoins are currently regulated under existing digital asset and AML/CTF obligations.
Australian regulators have taken a measured approach, focusing on compliance, consumer protection, and financial stability rather than restricting legitimate commercial use.
AUSTRAC Requirements
Service providers that facilitate stablecoin settlement to AUD, or enable the withdrawal of incoming stablecoin payments, must comply with Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) framework. This includes:
- Know Your Customer (KYC) and identity verification
- Ongoing AML/CTF monitoring and reporting
- Transaction record-keeping and auditability
These requirements ensure stablecoin payments are handled in line with Australia’s digital asset compliance standards and are subject to similar oversight as other regulated financial services.
RBA and Government Position
The Reserve Bank of Australia supports the development of high-quality, fully backed stablecoins, noting their potential to improve payment efficiency, settlement speed, and financial innovation.
Government consultations are ongoing to introduce a national framework for stablecoins, with a focus on reserve quality, auditing standards, and operational transparency. Current policy direction indicates support for regulated, well-structured stablecoin use rather than speculative or unbacked models.
What This Means for Businesses
Businesses in Australia can:
- Legally receive USDT or USDC as payment
- Invoice clients using stablecoin payment addresses
- Withdraw funds to AUD when required through a compliant service provider
Compliance obligations related to settlement and reporting are handled by the service provider (FastStables), which meets AUSTRAC requirements for digital asset transactions.
This allows Australian businesses to use stablecoins within existing regulatory frameworks while maintaining predictable settlement, transparency, and compliance.
Frequently Asked Questions on Stablecoins
Stablecoins are digital assets designed to maintain a steady value. They are commonly backed by high-quality reserves such as cash or short-dated government securities, making them suitable for payments, invoicing, and predictable business workflows. Read our full guide to what a stablecoin is.
Yes. Businesses in Australia can legally receive and use stablecoins such as USDT and USDC for payments and invoicing. They fall under existing digital-asset rules and AML/CTF regulations rather than a dedicated stablecoin framework. For a detailed breakdown of regulation and compliance, read whether stablecoins are legal in Australia.
Most stablecoins are backed 1:1 by reserves such as cash or cash-equivalents. Others use digital asset collateral or software-based mechanisms to support stability. The goal is to keep their value aligned with a target reference asset. Read our full guide on how stablecoins maintain a stable value.
USDT (Tether) and USDC (USD Coin) are the most widely used due to their global acceptance, strong liquidity, and reliable settlement behaviour.
Businesses use stablecoins for invoicing, receiving payments from clients, digital-native operations, international workflows, subscription billing, and contractor payments. They offer fast, predictable settlement compared to traditional payment methods. Read our guide on how businesses use stablecoins for payments. For businesses issuing invoices in USDT or USDC, this is typically implemented through structured crypto invoicing workflows.
Stablecoins operate on public blockchain networks, allowing transactions to settle quickly with transparent verification. This reduces delays associated with banking windows or correspondent payment systems. For a detailed explanation of settlement mechanics, reserve backing, and on-chain verification, see how stablecoins work.
Yes. Blockchain networks record each transaction on a public ledger, enabling transparent audit trails. Businesses benefit from structured reporting, timestamps, and clear sender/recipient information, simplifying reconciliation. Read our guide on stablecoin transaction traceability and auditability
USDT and USDC are both fiat-backed stablecoins supported by reserves of cash or cash-equivalents. They are widely used for payments and business transactions. The main differences relate to issuers, reporting practices, and ecosystem adoption. Read our USDT vs USDC comparison.
Stablecoins backed by high-quality reserves and issued by regulated custodians offer predictable settlement behaviour. Businesses should choose reputable issuers and use platforms that comply with AUSTRAC requirements.
Stablecoins fall under AUSTRAC’s AML/CTF obligations, including KYC, monitoring, and reporting. The Reserve Bank of Australia supports the development of fully backed stablecoins and is exploring a national regulatory framework. Learn how stablecoins are regulated in Australia.
Yes. Australian businesses can invoice clients using stablecoin payment addresses and legally receive USDT or USDC as payment. Compliance obligations are handled by AUSTRAC-registered service providers such as FastStables.
Industries working with international clients, subscription billing models, digital services, remote teams, or high-value B2B transactions benefit from predictable settlement and reduced delays. See which industries benefit most from stablecoin payments.
Traditional payment methods often involve delays, cut-off times, or higher processing overhead. Stablecoins settle quickly and operate 24/7 on blockchain networks, making them efficient for modern business operations. Compare stablecoins with traditional payment methods.
Receiving and holding stablecoins does not require a bank account. However, businesses may choose to withdraw their balance to their local bank account whenever needed through a compliant service provider. Learn about whether stablecoins require a bank account.
FastStables provides Australian businesses with stablecoin payment addresses, structured reporting, transparent settlement data, and AUSTRAC-aligned compliance workflows, making it simple to receive, manage, and reconcile stablecoin payments. Learn more about how FastStables supports stablecoin payments for Australian businesses.
Stablecoin Glossary
Algorithmic Stablecoin
A stablecoin that maintains value using software-based supply adjustments instead of external reserves. Algorithms expand or contract supply based on market conditions to keep the token near its target price.
AML/CTF Compliance
Anti-Money Laundering and Counter-Terrorism Financing regulations that apply to stablecoin service providers in Australia. Businesses must follow reporting, monitoring, and verification obligations under AUSTRAC.
Attestation / Audit
A third-party verification of stablecoin reserves. These reports confirm whether each issued token is properly backed by cash, cash-equivalents, or collateral.
Blockchain Network
A decentralised digital ledger that records stablecoin transactions securely and transparently. Public blockchains allow global settlement without traditional banking rails.
Burning
The process of permanently removing stablecoin tokens from circulation, typically when they are redeemed for their underlying asset.
Collateralisation
The mechanism of backing stablecoins with reserves or assets. Stablecoins may be fully collateralised, partially collateralised, or over-collateralised depending on design.
Correspondent Banking
A traditional cross-border payment system involving intermediary banks. Stablecoins bypass this model, enabling faster global settlement.
Crypto-Backed Stablecoin
A stablecoin backed by other digital assets rather than fiat currency. These stablecoins are typically over-collateralised and managed by smart contracts. Example: DAI.
Custodial Wallet
A digital wallet where a third-party provider manages and stores private keys on behalf of the user. This simplifies usage for businesses that prefer managed security.
DeFi (Decentralised Finance)
A blockchain-based financial ecosystem that uses stablecoins for lending, borrowing, trading, and liquidity provision without traditional intermediaries.
Digital Asset
Any asset issued, stored, or transferred on a blockchain, including stablecoins, cryptocurrencies, and tokenised representations of real-world assets.
Fiat-Backed Stablecoin
A stablecoin backed 1:1 by cash or cash-equivalents held by a regulated custodian. These are the most commonly used stablecoins in Australia. Examples: USDT, USDC.
KYC (Know Your Customer)
A verification process required by AUSTRAC to confirm user identity before enabling stablecoin payments, withdrawals, or conversions.
Liquidity
The ease with which a stablecoin can be exchanged for cash, other digital assets, or used in transactions without affecting its market price.
Minting
The creation of new stablecoin tokens, typically triggered when a user deposits equivalent fiat or collateral into a stablecoin system.
Non-Custodial Wallet
A wallet where users control their own private keys, offering greater autonomy and security responsibility.
On-Chain Settlement
The finalisation of transactions directly on the blockchain. Stablecoin settlement typically completes within seconds or minutes, regardless of location.
Over-Collateralisation
Providing more collateral than the value of stablecoins issued. Used to protect crypto-backed stablecoins from price volatility.
Peg
The target value a stablecoin aims to maintain, commonly set to a fiat currency such as 1 USD.
Programmable Money
Stablecoins used within smart contracts or automated workflows, enabling rules-based payments, invoicing, or settlement without manual intervention.
Redemption
The process of exchanging stablecoins back into fiat currency or underlying collateral through an issuer or liquidity provider.
Reserve Assets
Cash, cash-equivalents, and other high-quality liquid assets held to back fiat-backed stablecoins and maintain their 1:1 peg.
Settlement
The confirmation and completion of a transaction. Stablecoin settlement is typically near-instant and recorded on-chain.
Smart Contract
Self-executing code deployed on a blockchain that automates stablecoin minting, collateral management, interest calculations, or other financial processes.
Stablecoin
A digital asset engineered to maintain a stable value, typically pegged to a fiat currency like USD. Used for payments, invoicing, settlement, and global value transfer.
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