As cryptocurrency continues its march toward mainstream adoption, CFOs and treasurers are finding themselves at the forefront of what could be a financial revolution.

No longer the domain of blockchain enthusiasts and tech startups, crypto and blockchain solutions are increasingly becoming important tools in the treasury toolbox. Yet to successfully navigate this changing landscape, finance professionals must master the specialized vocabulary that describes these payments innovations.

Staying ahead of terms like “stablecoin sandwiches,” zero-knowledge proofs, atomic swaps, on-chain liquidity, and more will allow financial leaders to make informed decisions about integrating these technologies into their payment systems.

However, the use of crypto in enterprise finance depends on the ability to understand these concepts and apply them in real-world scenarios. As 2025 begins, staying fluent in the emerging language of payments innovation will help CFOs and treasurers stay ahead of the curve, ensuring their organizations remain competitive in an increasingly digital economy. .

Understanding these terms isn’t just academic — it’s about unlocking the use of crypto for enterprise applications.

See also: Stablecoins move from cross-border B2B to real-time treasury use cases

Mastering the Crypto Words for the Future of Payments

Stablecoins have emerged as a bridge between the worlds of traditional finance and digital currencies. In a market notorious for volatility, stablecoins offer a tether to familiar, stable values ​​like the US dollar. However, understanding the concept of a stablecoin sandwich takes it a step further.

For the Outlook 2030 B2B event in late 2024, PYMNTS sat down with Ren Goldie, SVP, Payments and Networks at FireBlocks, and Nicola Plekas, Head of Commercialization, Visa Crypto, to discuss the pros and cons of blockchain-based payments. can be detected. Including the concept of “Stable Coin Sandwich”. The currency serves as a practical example of blockchain’s efficiency in cross-border payments.

As Goldie explained, the process involves converting a currency such as the Mexican peso into a dollar-pegged stablecoin (such as USDC). This digital currency is then immediately transferred to the receiving country, where it is converted back into local fiat currency, such as British pounds. He shared a real-world example: In Latin America, importers use a stablecoin to pay Asian suppliers. Payments that used to take days are now settled in minutes, reducing storage costs and customs delays.

This speed gives payment providers a significant edge in markets where efficiency is critical. “Payment companies that don’t embrace these solutions risk being left behind,” said Goldie.

For CFOs and treasurers, the key to understanding the stablecoin sandwich is knowing how to effectively integrate these tools into treasury functions. The flexibility to combine different stablecoins within a transaction allows finance leaders to balance risk, reduce fees and keep payments efficient – ​​all within the confines of the regulatory framework.

Read more: What Was Crypto’s Biggest Story of 2024? Hint: His name wasn’t Alvin.

Why CFOs and Treasurers Need to Care

PYMNTS Intelligence found this year that blockchain technology has a number of potential benefits to meet the unique needs of regulated industries, including finance, healthcare, identity verification and supply chain management, to name a few. The names are listed.

As cryptocurrencies seem to become a reality in global payments, the question of privacy becomes paramount. Zero-Knowledge Proofs (ZKPs) allow one party to verify a piece of information to another without actually revealing that information. In the payments world, ZKPs help ensure that sensitive data such as transaction history or payment details are kept confidential and still ensure the legitimacy of the transaction.

For treasurers and CFOs managing sensitive business finances, ZKP technology allows CFOs to verify anti-money laundering (AML) compliance and know your customer (KYC) standards while protecting sensitive corporate data.

On-chain liquidity, or liquidity provided directly on the blockchain network through decentralized exchanges (DEXs) or liquidity pools, eliminates intermediaries, reduces costs and increases the speed of transactions. Treasurers leveraging on-chain liquidity can optimize working capital in real time.

Atomic exchanges, for their part, are smart contracts that enable the direct exchange of cryptocurrency between parties without intermediaries. Atomic swaps can facilitate cross-border or cross-currency payments, an important feature for treasurers dealing with multi-currency exposures.

Ultimately, understanding blockchain terminology prepares financial leaders to make informed decisions about whether to adopt or avoid certain technologies. Mastering this language will empower leaders to identify opportunities, mitigate risks, and confidently move their organizations into the digital future.