Emerging Markets’ Crypto Paradox: Stablecoins Without Utility

- Millions in emerging markets use stablecoins to protect savings but lack practical spending options. - Mantle's Timothy Chen proposes "crypto neobanks" to bridge the gap between digital and traditional finance. In emerging markets, millions turn to stablecoins for financial stability, but the promise of crypto utility remains frustratingly incomplete. Although digital assets provide financial alternatives, structural barriers make them difficult to use in daily life. On July 2, 2025, *Cointelegraph* reported that millions of crypto users in Southeast Asia and Latin America hold stablecoins to shield against local currency devaluation. However, significant hurdles limit practical integration into the real-world economy, as the infrastructure for converting digital wealth into local currencies (off-ramping) is inadequate and payment systems that accept crypto are scarce. Timothy Chen, global head of strategy at Mantle, addresses this issue in his commentary, explaining that while stablecoins grant access to U.S. dollar-based markets and protect against inflation, their utility remains capped in developing markets. These regions lack efficient systems to spend, transfer, or integrate cryptocurrency holdings into traditional financial frameworks, a disconnect that limits the transformative potential of digital assets, particularly in countries where financial sovereignty is most needed. To address these limitations, Chen proposes "crypto neobanks." These platforms would use blockchain architecture to offer a unified system for both fiat and cryptocurrency. Such systems could streamline processes, enabling users to receive salaries in stablecoins and spend them through crypto-compatible payment networks. By eliminating friction between traditional and digital finance, crypto neobanks could drive broader financial inclusion and equitable access, mirroring how neobanks modernized mobile banking services globally. As of July 2, 15:14 UTC, Mantle (MNT) was trading at $0.584, with a 3.65% increase in 24-hour trading volume, according to market data from CoinMarketCap.