Behind the Stablecoin Buzz, Old-School Infrastructure Still Runs the Show

It may come as a surprise to corporate leaders weighing blockchain finance solutions that, in practice, much of the heavy lifting enabling stablecoin transactions can happen off chain, not on it. Stablecoin ledger maintenance, after all, is commonly powered by the same standard relational databases (e.g. SQL) already being used by banks and FinTech firms for their own treasury systems and compliance workflows.

The actual blockchain in these instances functions primarily as a clearing and settlement layer, a shared payment rail that externalizes the cost and coordination of moving value. Stablecoin issuers can monetize messaging, clearing, settlement, reconciliation and compliance on top of these blockchains, which are typically Layer-1 (L1) chains.

Increasingly, and unlike the Wild West days of crypto yore, today’s stablecoins typically operate through a dual-stack model. Tokens can circulate on public blockchains, where transactions finalize and synchronize across participants. But issuance, redemption, reserve accounting, sanctions screening and financial reporting now frequently occur in traditional systems of record.

This bifurcation is not incidental; it is embedded in emerging U.S. law. The GENIUS Act requires payment stablecoins to maintain one-to-one backing with high-quality reserve assets and to provide disclosures and attestations similar to those expected of regulated financial institutions. And as more digital asset firms win conditional approvals from the Office of the Comptroller of the Currency (OCC) to operate stablecoin products and services under direct federal oversight, with Stripe-owned Bridge becoming the latest on Tuesday (Feb. 17), their new charter requirements also come with structurally equivalent oversight and reporting needs.

Capital treatment, liquidity monitoring, anti-money-laundering (AML) checks and operational resilience must be demonstrated through systems regulators can examine and test. As a result, stablecoin issuers’ systems of record are starting to resemble those of the same regulated institutions cryptocurrency once sought to displace.

Their hybrid on-chain, off-chain architecture is rapidly becoming the defining feature of U.S. regulated stablecoins, and, for corporate leaders, perhaps the most strategically relevant one.

See also: CFOs Eye Stablecoins as Capital Tool, Not a Crypto Bet 

Blockchain as a Payment Rail, Not Financial Backbone

The operational center of gravity for stablecoins remains off chain because that is where accountability most comfortably lives. Ledger maintenance, transaction reconciliation and balance management can be handled off chain using relational databases such as SQL-based architectures familiar to any treasury or ERP team. These databases can track customer balances, manage minting and burning workflows and reconcile fiat reserves against outstanding tokens.

The analogy is less “decentralized bank replacement” and more “cloud payments network with cryptographic settlement guarantees.” Much as modern SaaS platforms abstract infrastructure while maintaining conventional databases behind the scenes, stablecoin issuers combine distributed ledgers with centralized systems of record to meet enterprise-grade requirements.

This is transforming stablecoin issuers into something closer to narrow banks with tokenized liabilities than to decentralized software projects.

A central challenge for executives, then, may therefore not be blockchain integration but governance integration. Stablecoins introduce a new settlement medium while leaving institutions responsible for validating reserves, managing liquidity and maintaining regulatory relationships.

Read more: New York Fed Weighs In on Who Should Create Money 

Why Enterprises Should Care About Where the Ledger Lives

The early narrative around stablecoins imagined a world in which value moved directly across public blockchains, eliminating intermediaries and allowing companies to transact peer-to-peer with cryptographic certainty.

That model works well for retail transfers and certain capital markets use cases. It breaks down, however, under the weight of enterprise requirements: privacy, compliance, throughput, auditability and integration with ERP systems. For high-volume B2B usage (supplier payments, payroll, treasury sweeping), corporations cannot rely solely on blockchain throughput, privacy or programmability constraints; and, depending on the stablecoin use case, the architectural reality of the issuer’s ledger management may change the execution calculus.

In practice, when a corporation pays an overseas supplier using stablecoins, several things happen behind the scenes:

• The provider updates internal balance entitlements between participants.
• Compliance, sanctions screening, and transaction logic are executed off chain.
• Liquidity is allocated from prefunded reserves held within the banking system.
• Only periodically, or when assets move between ecosystems, is value synchronized to a blockchain.

For enterprises, this means the authoritative record of ownership may not be the token itself, but the platform’s internal ledger mapping who controls it. This design allows stablecoin networks to scale in ways public blockchains alone cannot. It also introduces a new locus of trust: not just the issuer’s reserves, but the integrity of its operational bookkeeping.

CFOs, after all, are typically not chasing speed. What they want instead is visibility and control over where their cash actually is.