Stablecoin Bill Sparks Catalyst for these FinTech Small-Caps

🌊 Making Waves

The recent stablecoin legislative success is just another feather in the sector’s cap: PayPal’s PYUSD stablecoin, first launched in 2023, was the first in a long line of industry adoption efforts that may culminate in formal Federal endorsement with the GENIUS Act (assuming it passes the House).

Following PayPal’s initial inroads, a range of fintech stocks marked minor pivots, including Shopify’s acceptance of USDC for point-of-sale transactions.

More recently, major retailers like Walmart and Amazon floated plans to deploy their own stablecoin offerings in a bid to wrest control (and fees) from the grip of credit card and payment processors like Visa and Mastercard.

While the go-to adjacent stocks like Circle and Coinbase surged on news of the GENIUS ACT moving on from the Senate, there’s a red-hot undercurrent gathering below some unique fintech small-caps that offer major upside in an economy where stablecoins and fast, efficient, and cheap payment processing take center stage.

Note - for this feature, we’ll avoid looking at bandwagoning crypto treasury strategy stocks like SRM Entertainment and Know Labs (covered in brief a few weeks ago).

Though some may doubtlessly benefit from stablecoin adoption, even if just as a momentum trade opportunity, there’s a bit too much exuberance in the space and not enough operational meat behind many of the small-cap crypto treasury strategy stocks.

Paysafe’s range of payment solutions has long enabled cross-border payment processing as well as bespoke options for sectors that legacy banking tends to eschew (online betting and gambling, in particular). Where Paysafe stands to benefit from stablecoin adoption, however, is across its digital wallet portfolio that includes Skrill, NETELLER, and others.

Specifically, a 2024 partnership with Alchemy Pay allows customers across European and other markets to convert fiat currency into crypto, while its existing wallet infrastructure already lets small businesses accept crypto as payment throughout Latin America.

Paysafe’s crypto infrastructure options aren’t available in American markets, but widespread stablecoin adoption could change that rapidly. Likewise, the company’s 2024 $152 billion in net digital commerce volume processing could explode as crypto becomes normalized.

Nayax is a unique fintech that’s just as focused on hardware verticals as it is on back-end software for payment processing; the company develops a range of physical platforms for vending machine point-of-sale digital payments, EV charging payment, as well as QR code readers and cashless self-checkout systems.

Where the company stands to gain from stablecoin adoption, though, is via its CoinBridge infrastructure, which allows users to convert digital assets like customer rewards points, gift cards, and the like into digital cash to pay for goods or services within its partner network. Since Nayax is a majority international player, stablecoin expansion into its existing CoinBridge rails could spur greater interest as global customers seek to convert virtual currencies into a fiat-backed crypto asset.

Repay’s recent partnership with MeridianLink lets banks and credit unions within the latter’s existing network rapidly fund customers via a range of options, including digital wallets. A sticking point for stablecoins, and crypto in general, is money laundering and fraud concerns. Repay’s existing infrastructure, nested within regulatory and consumer reporting sectors, may prove a no-brainer as smaller banking institutions and micro-lenders look to offer lending via stablecoin.

Hybrids were once seen as “just a bridge” between fossil fuel-powered automotives and the (perceived as) inevitable adoption of fully-electric vehicles. As we all know, EVs haven’t yet hit their terminal adoption point, but hybrids largely fell off in the meantime - until now.

Consumers are increasingly pivoting back toward hybrid cars and trucks, spurred by benefits over EVs (cheaper, better range and flexibility) as well as typical tech advancements that make the hybrids perform better and more comfortably.

Hybrids comprised nearly 15% of all autos sold in 2025’s first quarter, double EVs’ market share, and the trend seems to be accelerating.

Upstream suppliers will be your best bet to research if you’re looking for small-caps set to ride the renewed hybrid wave. Of those, ECARX Holdings $ECX ( ▲ 8.17% ) is particularly interesting as hybrids increasingly meet the high-tech bar set by EVs (Tesla’s suite of autos, in particular).

ECARX's products operate on a unique, full-stack computing platform, powering in-car infotainment units, autonomous driving controllers, digital cockpits, and more. The company has also recently partnered with Black Sesame Technologies, an AI chip company working towards full self-driving capabilities, making ECARX a wide-ranging bet on next-gen automotive tech advances in general.

💸 Small-Cap, High-Yield

Winnebago Industries, a recreational vehicle and marine manufacturer, offers a 4.35% forward dividend yield, though shares tumbled 5% over the past week after preliminary weakness in a Q3 earnings sneak peek, reflecting macro uncertainties and rising costs.

From a more critical perspective, however, the company’s luxury Newmar motorhome line and strong marine brands like Barletta and Chris-Craft continue gaining retail share, buffering temporary softness in its core Winnebago motorhome business while supporting a 44-quarter dividend streak.

The company will release its full third-quarter earnings next week on the 25th, creating a good buying opportunity in the interim for the high-yield stock if you expect management to come to the call with a solid turnaround playbook.

If Winnebago didn’t whet your appetite, these high-yield small-caps go ex-div within the next week:

Yield: 3.50%

Known For: Nevada-based casinos, resorts, and bars.

Yield: 2.24%

Known For: Residential furniture manufacturing and imports - as well as a recent double-digit dividend increase and 334 consecutive quarterly payouts.

Yield: 1.68%

Known For: An “experience economy” cornerstone that may see surging customer engagement during the summer months.

💡 Weekend Watchlist: 3 Stocks to Study

Generative AI hype and massive chip foundries may have spurred the current craze (bubble?), but the smaller Edge AI hardware industry is the overlooked future growth sector powering smart devices that think on their own.

By running AI directly on gadgets like cameras, drones, and cars, this niche delivers instant, private processing without cloud reliance, making it a less crowded, high-potential sector.

Here are three Edge AI small-caps to explore during your weekend downtime: