Thoughts on stablecoin use in fintech off-ramps

I'm genuinely trying to understand the nuances of stablecoin integration for fintechs, especially regarding on/off-ramps for merchant payments. It seems like the obvious play for faster, cheaper settlements compared to traditional rails, but I keep hitting a wall on the regulatory and operational complexities. For example, if a fintech integrates a stablecoin like USDC for a merchant, what are the primary hurdles beyond the technical bridge build? I'm thinking more about the liquidity provisioning and the KYC/AML overhead when moving large volumes between fiat and stable, especially for smaller businesses. Is it really as simple as the providers make it sound, or are there hidden costs/risks I'm missing? Looking at some of the smaller payment processors trying to do this, it feels like they're burning through capital just to maintain compliance, which eats into any speed/cost advantages. It's not like trading $MSFT where the structure is mature; this feels much more fragmented.