In 2024, stablecoin custody stands at the center of global business and fintech strategy as digital asset volumes surge to record highs. Stablecoin transaction volumes reached $27.6 trillion last year, exceeding the combined transaction totals of Visa and Mastercard by over 7.68% (blog.cex.io). As stablecoins become essential for cross-border payments, the need for strong management and protection of these assets has never been more important.

With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences—a reality noted by the Financial Action Task Force (FATF) in June 2025. Companies seeking stability are increasingly relying on platforms like Mural Pay, which powers stablecoin payments infrastructure for the Americas and beyond, to strengthen their digital asset security and support compliance.

Understanding Stablecoin Custody: Custodial vs. Non-Custodial Approaches

Think of stablecoin custody as the digital equivalent of entrusting your funds to a vault. In the crypto world, that vault can be a custodial wallet—managed by a trusted third party—or a non-custodial wallet, where you alone control the digital keys.

Custodial wallets offer user-friendly interfaces and support, but trusting the provider’s security and regulatory practices is essential. Non-custodial wallets put users in full control, increasing autonomy but also the risk of loss due to user error, such as misplacing private keys or failing to securely store recovery information.

Modern solutions often use multi-signature wallets, which require multiple approvals for transactions, significantly improving security and reducing the risk of a single point of failure. For more on these terms, see our glossary.

Top 7 Stablecoin Custody Risks (and What They Mean for Your Business)

As digital assets go mainstream, businesses must navigate a range of risks in stablecoin custody. Here are the seven most pressing dangers—each backed by recent industry data or real-world events:

1. Counterparty Risk

There’s always the risk that the platform or custodian holding your assets may fail or act maliciously. In February 2025, North Korean actors allegedly stole $1.5 billion from the ByBit exchange, underscoring how third-party vulnerabilities can have catastrophic consequences (reuters.com).

2. Regulatory Risk

Global regulation remains a moving target. As of April 2025, only 40 out of 138 jurisdictions assessed were "largely compliant" with FATF's crypto standards (reuters.com). This patchwork creates uncertainty and exposes businesses to compliance failures.

3. Security Vulnerabilities

Stablecoins are not immune to security flaws. In 2024, Tether's market cap exceeded $100 billion, raising concerns about its systemic impact and the potential fallout from a major breach (reuters.com). Smart contract weaknesses can be exploited by attackers, leading to significant losses.

4. Liquidity Risk

Stablecoins now account for 8.2% of total cryptocurrency market capitalization (coinlaw.io). If redemption demands spike, a lack of liquidity can prevent timely conversion to fiat, disrupting business operations.

5. Operational Risk

Failures in process, technology, or oversight can have dramatic effects. The 2024 collapse of TerraUSD led to widespread market disruption, highlighting the need for strong operational controls (ft.com).

6. Insurance Gaps

The lack of insurance coverage for stablecoin reserves poses a significant risk to investors and the broader financial system, with most issuers unable to provide comprehensive insurance for client funds.

Most holdings remain uninsured, leaving users exposed if something goes wrong.

7. Audit/Transparency Risk

While 90% of stablecoin issuers now publish monthly reserve reports (coinlaw.io), many lack fully independent, third-party audits, leaving gaps in trust and verification.

For more on compliance and legal risk, see our post on KYC & Tax Rules for Stablecoin Payments in Mexico.

Case Study Snapshot: Lessons from Recent Stablecoin Failures

What happens when custody risks become real? Consider these recent events:

• TerraUSD Collapse (2024): The algorithmic stablecoin TerraUSD collapsed, causing significant investor losses and market instability. This event sent shockwaves through the entire crypto market, as related assets lost value and overall confidence eroded (ft.com).

• ByBit Exchange Hack (2025): North Korean actors allegedly stole $1.5 billion in virtual assets from ByBit, marking one of the largest crypto thefts to date. This underscores the importance of stringent security measures and counterparty risk assessments in crypto exchanges (reuters.com).

For a deeper dive into stablecoin safety, see Are Stablecoins Safe? What's the Safest Stablecoin.

How Mural Pay Solves the Top Stablecoin Custody Risks

Mural Pay is built to address every custody risk highlighted above:

• Institutional-Grade Security: Multi-signature wallets, MFA, and advanced monitoring safeguard every transaction.

• Regulatory Alignment: Mural Pay meets global standards, with full KYB/KYC, granular permission controls, and transparent, regularly audited transaction histories for every client.

• Guaranteed Liquidity: On/off ramps allow quick conversion between stablecoins and fiat in 40+ currencies, with batch and recurring payouts.

• Transparency: Real-time reporting and reconciliation, plus regular external audits, build user trust.

• Insurance and Compliance: Mural’s infrastructure is designed around compliance and risk mitigation, offering peace of mind for businesses operating at scale.

In a 2024 pilot, Visa expanded its USDC settlement program to enable instant, cross-border merchant settlements—demonstrating how effective custody solutions can reduce costs and settlement times (bastion.com).

Learn more about instant, low-cost stablecoin payments available through Mural Pay.

Regulatory Compliance and Transparency: The Foundation of Secure Stablecoin Custody

For strong compliance and digital asset security, regulatory clarity is essential. As the FATF noted in June 2025, "With virtual assets inherently borderless, regulatory failures in one jurisdiction can have global consequences."

The Financial Stability Board and other regulators now require issuers to publish reserve reports and keep clear audit trails, driving trust and industry growth. Non-compliance can lead to legal actions, fines, and reputational damage, making up-to-date transparency, audits, and strong AML/KYC programs essential.

Mural Pay’s approach aligns with these standards, integrating KYC/AML controls and external audits into every workflow.

For more on regulatory terms, see our glossary.

Key Takeaways: Building Resilience in Stablecoin Custody

The digital asset economy is only as strong as its weakest custody link. Choosing a secure, compliant custody partner is now a business advantage, not just a technical detail.

In 2024, 80% of top stablecoin projects were fully compliant with global anti-money laundering (AML) and know-your-customer (KYC) standards, enhancing trust and facilitating institutional adoption (coinlaw.io).

Increasingly, businesses are adopting advanced technologies like Multi-Party Computation (MPC) to minimize risk by distributing key control.

For a closer look at how Mural Pay supports compliance and security, visit our documentation.

FAQ: Stablecoin Custody for Businesses in LATAM and Beyond

Q: How important are stablecoins for cross-border payments in Latin America?
A: In 2024, stablecoins accounted for 48.1% of transaction activity in Latin America, underscoring their critical role in cross-border payments and remittances in the region (coinlaw.io).

For a full list of supported currencies, see supported stablecoins and fiat options.

Q: What compliance steps should businesses take when using stablecoins?
A: Choose providers who follow KYC/AML requirements, publish reserve and audit reports, and meet local regulatory guidance. Companies operating across borders must navigate differing compliance rules, so select providers with multinational coverage.

Q: How does Mural Pay support operational efficiency for large-scale payouts?
A: With batch payment capabilities and instant reconciliation, Mural Pay allows businesses to pay 100+ recipients at once—reducing manual work and risk.

Explore more in our post on batch stablecoin payouts.

References

• Bastion. (2025). The State of Stablecoins March 2025. https://www.bastion.com/blog/the-state-of-stablecoins-March-2025

• blog.cex.io. (2024). Stablecoin Landscape 2024. https://blog.cex.io/ecosystem/stablecoin-landscape-34864

• Coinlaw.io. (2024). Algorithmic Stablecoins Statistics. https://coinlaw.io/algorithmic-stablecoins-statistics/

• Coinlaw.io. (2024). Stablecoin Statistics. https://coinlaw.io/stablecoin-statistics/

• Reuters. (2024–2025). Global financial crime watchdog calls for action on crypto risks. https://www.reuters.com/sustainability/boards-policy-regulation/global-financial-crime-watchdog-calls-action-crypto-risks-2025-06-26/

• Financial Times. (2024). Crypto's quiet workhorse is finally going mainstream. https://www.ft.com/content/e5701ff2-d976-451f-9ca2-68cd5f833c1a