Bridging Gaps: Stablecoins as Enablers of Cross-Border Tokenized Credit Distribution to SMEs

Agasthya Khurana

Abstract: Access to affordable, timely credit remains one of the largest barriers to growth for small and medium-sized enterprises (SMEs) in emerging markets. Tokenization of debt instruments offers fractional ownership, increased liquidity, and automated compliance, while stablecoins provide a programmable, 24/7 settlement rail for cross-border transactions. This paper develops a conceptual framework and taxonomy for how regulated stablecoins can accelerate the distribution of tokenized SME credit across borders. It synthesizes regulatory, technical, and market factors; identifies the economic channels through which stablecoins may reduce distribution frictions such as settlement latency, foreign exchange costs, and investor reach; and highlights potential risks including reserve opacity, legal uncertainty, and regulatory fragmentation. The study concludes with a roadmap for pilot studies and empirical testing to evaluate whether stablecoins materially enhance distribution efficiency and investor inclusion for tokenized SME credit in emerging markets.

Keywords: Stablecoins, tokenization, SME credit, cross-border finance, digital settlement, financial inclusion, programmable payments, regulatory frameworks

How to Cite?: Agasthya Khurana, "Bridging Gaps: Stablecoins as Enablers of Cross-Border Tokenized Credit Distribution to SMEs", Volume 14 Issue 12, December 2025, International Journal of Science and Research (IJSR), Pages: 1734-1735, https://www.ijsr.net/getabstract.php?paperid=SR251113111957, DOI: https://dx.doi.org/10.21275/SR251113111957