For an importer, money has a practical job: pay for goods, keep production moving and leave a clear record. That makes a new question in monetary research relevant to everyday business: how should dollar stablecoins be measured when they are used to pay suppliers?
The opportunity for businesses lies in making payments easier to execute and manage. This article explains the research, distinguishes three types of digital assets and turns the discussion into a practical framework for evaluating USDC supplier payments.
1. What the researchers actually examined
On September 4, 2026, Kristen Payne and Mary-Frances Styczynski published New Forms of Money and the U.S. Monetary Aggregates in FEDS Notes. They examine possible classifications based on how assets are used. The paper explicitly represents independent research, not a Federal Reserve policy deliberation.
The distinction matters when reading headlines: a proposal for measuring money does not itself change the rights attached to a token or approve a payment provider.
Federal Reserve — New Forms of Money and the U.S. Monetary Aggregates (September 4, 2026) ↗
2. M1 and M2, without the jargon
M1 measures highly liquid money, including cash and demand deposits. M2 includes M1 plus assets such as small time deposits and retail money market funds. These are U.S. statistical definitions; other countries may define their measures differently.
Think of money ready for payments and a broader pool that also includes certain savings assets. This is a way to measure the economy, not a rule for classifying an individual company’s balance sheet.
3. Three digital assets, three different starting points
The study distinguishes bank deposits, fund shares and payment stablecoins. Recording them on a blockchain does not make their underlying claims identical. Its classification framework can be summarized as follows.
| Asset | What it represents | Treatment discussed in the study |
|---|---|---|
| Tokenized deposit | A bank deposit recorded on a blockchain | Already counted with deposits; category depends on deposit terms. |
| Tokenized money market fund | A fund share recorded on a blockchain | Retail MMF holdings are counted in M2 outside M1. |
| Payment stablecoin | An issuer’s token supported by reserve assets | Potential M1 or non-M1 M2 treatment; not currently included. |
Federal Reserve — New Forms of Money and the U.S. Monetary Aggregates (September 4, 2026) ↗
4. Why counting tokens is not enough
The researchers identify measurement challenges, including consistent reporting, reserves already captured elsewhere and the geographic scope of circulation. Their paper uses USDC as an analogy to inform the analysis of payment stablecoins.
For a finance team, this prompts a useful distinction of its own: token supply, payment activity and supplier purchasing power answer different questions. A transaction count cannot tell you whether an invoice was settled in full, whether the recipient needed local currency or how much the entire payment cost.
Federal Reserve — New Forms of Money and the U.S. Monetary Aggregates (September 4, 2026) ↗
5. Turn the debate into a supplier-payment test
Consider an illustrative invoice for US$10,000. The buyer and supplier agree to settle it with 10,000 USDC on Base. They should also agree who pays the fees and what evidence marks the obligation as paid. The numerical illustration assumes that settlement agreement; it is not a live exchange quote.
If the supplier plans to use USDC, assess when the tokens become available in the agreed account. If the supplier needs local currency, include the conversion quote, provider requirements and bank-credit timing in the comparison. An onchain transfer and usable local-currency proceeds are two different milestones.
Record the funding cost, service fees, any supplier deductions and staff time. Then compare the same invoice and the same endpoint with the existing bank route. This makes an improvement measurable instead of relying on a headline transfer speed.
- Agree on the asset, network and amount the supplier must receive.
- Compare the total cost for both parties using one analysis currency.
- Keep approval, transfer confirmation and supplier receipt records together.
6. Where RICE Pay puts digital dollars to work
RICE Pay builds its supplier-payment workflow around native USDC on Base: review payment details and fees, approve the transaction directly, track its status and keep the records needed for repeat payments. RICE Pay bears the network gas cost for supported transactions, so customers do not need to buy ETH just to pay that gas fee.
This gives businesses a concrete way to evaluate digital-dollar payments through cost visibility, direct approval and traceable records. Gas sponsorship covers the network charge; service fees and any partner conversion costs remain part of the complete cost comparison.
The starting point is a supported payment route with an eligible business and a supplier ready to receive the agreed asset. Where local-currency conversion is needed, confirm the partner’s availability and terms before approving payment.
Before the first payment: five questions to settle
Use one real supplier invoice to define a small, measurable evaluation.
- Has the supplier agreed to USDC on Base and the amount to be received?
- Are the business, countries and intended payment supported by the relevant providers?
- Does the comparison include funding, service fees, conversion and staff time?
- Who approves the payment, and how is the receiving address verified?
- What proves completion: USDC received or local currency credited, and which records will accounting retain?
Questions businesses often ask
Does this research make USDC a bank deposit or government-guaranteed money?
No. A monetary-statistics discussion does not change the token’s legal terms. Circle’s USDC terms state that USDC is not covered by deposit insurance. Review the issuer’s terms separately from the payment service.
Does a company need to wait for an M1 or M2 decision?
An aggregate classification is not an individual payment authorization. Evaluate the applicable requirements, provider support and commercial agreement for your own route.
Does sponsored gas make the entire payment free?
No. RICE Pay pays the network gas cost for supported transactions. Service fees and partner conversion costs, where applicable, must still be included when comparing the complete payment.
The business case is built one payment at a time
A useful evaluation starts with a supplier, an invoice and a clear definition of completion. Measure what changes in cost, handling time and control, then use the evidence to decide whether to expand to repeat payments.
Digital dollars earn their place in a business when they make paying suppliers work better.
Explore the payment workflow
See what your supplier payments really cost
Start with one recent payment. Use the RICE Pay cost analysis to bring fees, exchange costs and staff time into a single view, then request a review of your payment route.
Analyze payment costsPrepared September 7, 2026. The research discussion follows the cited Federal Reserve authors’ analysis; the supplier example and business framework are RICE Pay’s own interpretation. References do not imply endorsement of RICE Pay. Provider terms and route availability should be checked at the time of use.