Stablecoins in Australia: What’s Actually Being Used, and Where

Discussion about stablecoins in Australia often focuses on future potential. A more useful starting point is where they are already being used today, and for what purposes.Across exchanges, fintech infrastructure, and market-level pilots, stablecoin activity has settled into a relatively consistent set of use cases. These uses are largely operational rather than consumer-facing, reflecting specific constraints in existing settlement, liquidity, and cross-border payments infrastructure.

Treasury and liquidity management

The most visible use of stablecoins in Australia sits within treasury and liquidity operations. Exchanges, brokers, OTC desks, and digital asset firms use stablecoins as working capital to manage liquidity across venues and time zones.For firms operating between US and Asian markets, banking cut-off times and batch settlement processes remain a constraint. Stablecoins offer continuous settlement availability, which makes them useful as an operational liquidity tool rather than as a store of value.Industry reports and public disclosures from Australian digital asset platforms suggest that stablecoins are involved in a significant share of on-platform trading and settlement activity.

Cross-border business payments

Stablecoins are also used for cross-border business payments, particularly for payroll, supplier payments, and internal transfers between related entities. Adoption is most common in USD-denominated flows, where correspondent banking arrangements can introduce delays and operational complexity.In APAC-focused case studies, businesses using stablecoin settlement report faster settlement times and, in some cases, reduced operational friction compared with traditional cross-border payment processes. In practice, predictability of settlement timing appears to be a primary driver, with cost considerations a secondary factor.

Settlement for tokenised initiatives

Stablecoins feature prominently in Australian pilots exploring tokenised assets and broader market infrastructure modernisation. In these contexts, they are assessed as potential settlement instruments capable of supporting delivery-versus-payment workflows without multi-day settlement cycles.While many of these initiatives remain at pilot or early deployment stage, they highlight how stablecoins are being evaluated within discussions about real-time settlement and programmable financial infrastructure.

Fintech and digital platforms

Consumer-facing applications currently represent a smaller share of stablecoin activity in Australia. Where stablecoins are used within fintech or digital platforms, they typically function as an internal unit of account or settlement mechanism rather than as a consumer-facing product.These applications align with broader trends such as declining cash usage and expectations of near real-time payments, but they have not yet driven the majority of domestic stablecoin volumes.

Tokenised yield and cash deployment

Stablecoins are also used as entry points into tokenised money market funds and government securities, primarily by institutions and high-net-worth investors. These products typically offer daily liquidity and fractional access, enabling more flexible deployment of short-term liquidity.While much of this activity currently involves offshore products, it has increasing relevance for Australian allocators, particularly in the context of USD exposure and liquidity management.

AUD-denominated stablecoins

While a large share of on-chain settlement activity continues to rely on USD-backed stablecoins, Australian-dollar-denominated instruments have begun to emerge where maintaining AUD exposure is operationally relevant.AUDX is one example designed for AUD-denominated on-chain settlement use cases, where permitted and appropriate. Its current use reflects where on-chain infrastructure is being adopted first, rather than defining the full range of potential applications over time. To date, usage has been focused on controlled, non-retail contexts.

Regulatory context

Regulatory engagement around stablecoins in Australia has increased, though comprehensive frameworks for payment stablecoins are still under development. Draft legislation, licensing activity by ASIC, and ongoing dialogue between issuers, platforms, and regulators have provided greater directional clarity, particularly for pilot programs and controlled deployments.For many market participants, this level of engagement has been sufficient to support limited operational use, even as broader consumer protections, licensing requirements, and supervisory frameworks continue to evolve.

Where stablecoins fit today

Stablecoins in Australia are being used where existing infrastructure is least efficient: outside banking hours, across borders, and in early on-chain settlement contexts. They are not replacing core banking systems, but are increasingly used alongside them.For most end users, the impact is indirect. Improvements tend to appear as faster settlement, simpler reconciliation, or extended operating hours, rather than through direct interaction with stablecoins themselves.

Looking ahead

Stablecoin usage in Australia is likely to broaden gradually from its current operational focus. As settlement infrastructure matures and regulatory frameworks are finalised, additional use cases may emerge, particularly where real-time settlement and programmability offer clear functional advantages.

At AUDX, we operate and support AUDX as part of Australia’s emerging on-chain infrastructure, and we’re closely engaged with how its role may evolve as adoption patterns and market structure continue to develop.