India Faces Pressure on Stablecoin Rules as Supply Hits $240B

• Ex-RBI director urges swift stablecoin regulation to avoid crypto-style policy drift.
• Stripe’s Tempo launch shows rising stablecoin use for faster, cheaper business payments.
• Stablecoin supply hits $240B, signaling fresh liquidity inflows into broader crypto markets.

India’s regulatory debate around digital assets sharpened this week after former Reserve Bank of India (RBI) executive director G Padmanabhan urged the government to move faster on stablecoin rules.

Speaking at a curtain raiser for the Global Fintech Festival 2025, he warned that delays could replicate the policy drift seen with cryptocurrencies. 

Padmanabhan, now an advisor to the Payments Council of India, stressed that stablecoins differ from speculative crypto assets and should be treated under a distinct policy framework. He noted India cannot afford to ignore global developments, pointing to the United States’ progress with its electronic currency framework.

He added that India risks losing ground in global financial coordination if it waits too long. Discussions with regulators, he argued, should happen behind closed doors to ensure alignment across jurisdictions before any public rollout.

Related: Stablecoin Valuation Hits $281 Billion: Here are the Biggest Beneficiaries

Stripe’s Tempo Shows Growing Stablecoin Utility in Business Payments

Padmanabhan’s comments came as Stripe expanded into stablecoin infrastructure. On September 4, CEO Patrick Collison highlighted how stablecoins are gaining traction as faster and cheaper rails for everyday business payments.

The push followed the launch of Tempo, Stripe’s new blockchain network built with Paradigm, designed exclusively for stablecoin transactions. Collison admitted Stripe had been cautious about crypto payments for much of the last decade, but adoption forced a rethink.

Stripe’s 2024 acquisition of Bridge, a stablecoin infrastructure provider, gave it a foundation for business-focused tools. Today, Stripe’s clients range from SpaceX using stablecoins for cross-border transfers to DolarApp in Latin America offering stablecoin-based banking, and even an Argentinian importer paying suppliers through Stripe’s dashboard.

Stablecoin Supply Hits Record $240 Billion, Boosting Market Liquidity

Beyond payments, analysts view stablecoins as a direct gauge of liquidity entering crypto markets. Data show total supply has climbed to a record $240 billion, up sharply in recent months.

According to market analyst Darkfost, each stablecoin minted represents fiat capital flowing into digital assets, and the surge could signal broader upside for cryptocurrencies like Bitcoin and Ethereum.

New entrants have contributed to the expansion. Ethena’s ENA has grown into a nearly $14 billion stablecoin project, adding further momentum. 

Analysts argue the growth cements stablecoins as a leading indicator of liquidity, with their role as gateways into digital assets now critical for traders and institutional allocators alike.

Related: Tether Exec Touts Stablecoins for Remittaces as ‘Stablecoin Summer’ Heats Up