DSA outlines stablecoin use in payments, settlement

Officials from the Digital Sovereignty Alliance discussed how stablecoins and tokenized deposits can fit into existing payments and settlement systems at two industry events in late April. The first session was a PayCLT webinar on April 22; the second was a panel at The Programmable Economy conference at Cornell Tech on April 24 in New York.

Adrian Wall, managing director of the DSA, took part in a virtual fireside chat hosted by PayCLT on April 22. Moderated by PayCLT Executive Director Dean Nolan, the session examined integration of tokenized instruments into settlement and liquidity operations and the role of policy in system design. Wall argued that regulators and policymakers are now shaping which systems are built and who can take part. He added, “Policy is no longer trailing innovation; it is actively defining what gets built, who participates, and how these systems scale.”

At Cornell Tech on April 24, DSA Senior Policy Advisor Molly Woodman joined a panel titled “Next Gen Payments” with representatives from payments and digital asset firms. The panel, moderated by Jeff Rundlet, covered trends in payments infrastructure and digital asset markets. Woodman noted that stablecoins already operate across wallets, payment rails and settlement processes and said attention has shifted to how those systems interoperate with legacy finance and meet regulatory requirements. “Stablecoins are already being used across wallets, payment rails, and settlement processes,” she observed.

Panelists discussed specific operational topics including settlement efficiency, programmable finance features, and how tokenized deposits could affect liquidity management for institutions and payment providers. The conversation included work to align stablecoin and tokenized deposit design with existing clearing and settlement frameworks and how regulatory design choices could affect market access and scale.

The DSA described its participation as part of ongoing efforts to support policy, research and education on blockchain, Web3 and artificial intelligence. The organization said the events were intended to bring technologists, policymakers and market participants together to inform policy discussions and technical development.

Participants at both sessions raised practical questions about how tokenized instruments settle, how liquidity moves across different rails, and how standards and rules will be set. The discussions focused on technical integration, settlement mechanics and regulatory design rather than basic explanations of stablecoins or tokenization.