Crypto and Stablecoins for Cross-Border Payments

International transfers through banks and money transfer operators (MTOs) have long borne significant price and time burdens. In 2024, the World Bank reported that sending USD 200 across borders cost an average of 6.26 percent of the transferred amount, exceeding the United Nations’ Sustainable Development Goal of 3 percent for such remittances (Remittance Prices). Settlement delays often span multiple days, influenced by correspondent banking relationships, time-zone mismatches and anti-money laundering checks. For individuals focused on receiving money from overseas, these delays can disrupt liquidity and planning. Companies seeking international payout options for payroll or supplier invoices confront similar inefficiencies.

Industry estimates place the total value of cross-border payments—when wholesale transfers are included—at approximately USD 1 quadrillion in 2024 (European Central Bank). Retail corridors exhibit wide cost variation: remittances to South Asia averaged 6–7 percent, while fees into Africa frequently surpassed 7 percent (Grand View Research). Such rates drive demand for cheapest way to get remittances, with migrants and global businesses alike exploring fintech alternatives.

Cryptocurrencies emerged as an alternative to legacy systems, promising peer-to-peer settlement, 24/7 availability and minimal banking intermediation. Bitcoin and Ethereum have been used for cross-border payins, where senders deposit crypto in one jurisdiction and receivers redeem fiat elsewhere. Volatility in crypto asset values introduced exchange-rate risk for recipients, prompting demand for assets pegged to stable values.

Despite price swings, crypto transfers can settle within minutes, offering easy overseas transfers compared with multi-day bank processes. Brokers and OTC desks facilitate conversion between fiat and crypto, enabling senders to navigate how to collect funds abroad through digital wallets. But the volatility challenge underscored the need for collateralized tokens.

Stablecoins are digital tokens backed 1:1 by reserve assets—typically fiat currency or cash equivalents. By design, they retain a fixed value (e.g., 1 USDT ˜ USD 1), removing exchange-rate risk inherent in unpegged cryptocurrencies. The market cap of fiat-backed stablecoins surpassed USD 210 billion at the end of 2024, with on-chain transaction volumes reaching USD 26.1 trillion over the same year (BCG Media Publications).

Analysts project daily stablecoin volumes to grow substantially. A McKinsey study estimated that by 2028, daily global stablecoin transactions could exceed USD 250 billion—surpassing the throughput of major card networks (McKinsey & Company). Infrastructure platforms like Fireblocks reported that stablecoins accounted for almost half of transaction volume in 2024, underscoring their integration in modern payment rails (Fireblocks).

1. Remittances and Migrant Transfers
   • Migrant workers seeking the cheapest way to get remittances have adopted stablecoins for lower fees and faster settlement. On average, stablecoin transfers incur under 1 percent in fees, a fraction of traditional corridors (FXC Intelligence).
   • A transfer receivers guide published by industry consultancies outlines step-by-step wallet setup, identity verification and on-ramp selection. This guide emphasizes simple interfaces and multilingual support for recipients unfamiliar with crypto.
2. Corporate Treasury and Payroll
   • Multinational firms exploring international payout options can distribute payroll in stablecoins. Recipients convert tokens to local currency via regulated exchanges, enabling get paid internationally processes without wire fees.
   • Global enterprises with diverse subsidiaries benefit from netting positions on a blockchain, a mechanism referred to as global payment receipt netting.
3. Interbank and B2B Settlements
   • A subset of banks have piloted fiat-denominated stablecoins to settle foreign exchange trades and interbank loans. Settlement finality occurs within seconds, compared with T+1 or T+2 under current frameworks.
   • Some institutions report improved liquidity usage through on-chain overdraft facilities, reducing reliance on nostro accounts.
4. Cross-Border Payins for E-Commerce
   • Online merchants expanding into emerging markets leverage stablecoin rails for easy overseas transfers from buyers. Settlement in stablecoins mitigates chargeback risk and foreign exchange margins.

Adoption of stablecoins for cross-border payments varies by jurisdiction. Fireblocks data showed:

• Latin America: 71 percent of surveyed institutions live on stablecoin rails, driven by high traditional costs and currency volatility in local markets (Payments Consulting Network).
• Asia: 56 percent live; 49 percent cited market expansion as the primary motivator, with Indonesia and Philippines leading corridor experiments.
• Africa and Middle East: Pilot programs focus on remittance corridors between migrant-sending and receiving nations, especially those with limited banking access.

Transfer Amount	Traditional Cost (Bank/MTO)	Stablecoin Cost	Settlement Time
USD 200	6.26 percent	0.8 percent	< 1 hour
USD 500	4.3 percent	0.7 percent	< 1 hour
USD 1,000	3.9 percent	0.6 percent	< 1 hour

Data for traditional costs are based on World Bank and FSB reports; stablecoin fee estimates derive from major exchange and platform fee schedules (Remittance Prices) and (FXC Intelligence).

Stablecoin adoption hinges on robust on- and off-ramp infrastructure. Key components include:

• Crypto Exchanges: Centralized venues like Coinbase, Binance and Kraken handle large volumes of stablecoin-to-fiat conversions.
• Payment Service Providers (PSPs): Firms such as Circle and Ripple offer APIs for integrating stablecoin receipts into merchant platforms, facilitating global payment receipt workflows.
• Digital Wallets: Self-custodial and hosted wallets support multiple stablecoin standards (ERC-20, TRC-20, BEP-20), enabling receiving foreign currency directly in token form.
• Regulatory Gateways: Compliance with KYC/AML is managed through shared utilities, reducing onboarding friction for cross-border payors and payees.

Regulatory frameworks are evolving. The Financial Stability Board (FSB) and Financial Action Task Force (FATF) have proposed guidelines that:

• Require issuers to hold reserve assets in safeguarded accounts.
• Mandate regular attestations and audits of reserve backing.
• Impose customer due diligence for transactions exceeding certain thresholds.

A Reuters investigation highlighted the surge of a Russian rouble-backed stablecoin (A7A5) with USD 40 billion in cross-border volume since July 2025, prompting scrutiny over sanction evasion risks (Reuters). Risks include:

• Counterparty Credibility: Trust in reserve holdings is critical. Market confidence can erode rapidly if audits are opaque.
• Liquidity and Delays: In thin corridors, on-ramp and off-ramp liquidity may cause slippage, delaying receiving money from overseas for end users.
• Legal Clarity: Jurisdictions differ in treating stablecoins as securities, commodities or payment instruments, creating compliance complexity for get paid internationally operations.

Investment banks and technology firms are entering the stablecoin space. An FT article observed that Bank of America, Standard Chartered, PayPal, Revolut and Stripe aim to issue or leverage stablecoins for cross-border payments, attracted by lower costs and immediate settlement (Financial Times). Perspectives diverge on scale:

“Investment banks like Goldman Sachs project robust growth in stablecoins, estimating their market cap could surpass $1 trillion within five years. Yet JPMorgan’s Global Markets Strategy team is more conservative, predicting a rise to only $500 billion by 2028,” according to the Financial Times (Financial Times).

Central bank digital currencies (CBDCs) remain a parallel development. While private stablecoins emphasize market-driven issuance, CBDCs offer sovereign backing with different privacy, governance and programmability profiles. Interoperability between CBDCs and stablecoins may unlock new international payout options for public-private consortiums.

Entities and individuals can approach stablecoin-based cross-border payments through a structured process:

1. Platform Selection
   • Evaluate exchanges and PSPs based on jurisdictional coverage, fee schedules and compliance standards.
   • Review liquidity pools for corridors of interest to ensure minimal slippage.
2. Onboarding and Compliance
   • Implement KYC procedures aligned with FATF Travel Rule requirements.
   • Maintain audit trails for regulatory reporting and tax compliance.
3. Wallet Management
   • Opt for multi-signature or hardware wallet solutions for treasury operations.
   • Establish key-rotation policies and cold-storage protocols for risk mitigation.
4. Integration and Automation
   • Use APIs to automate cross-border payins and payouts, reducing manual reconciliation.
   • Monitor transaction confirmations on-chain for real-time settlement status.
5. Training and Support
   • Provide transfer receivers guide materials to payees, detailing wallet setup and redemption steps.
   • Offer multilingual customer support to facilitate easy overseas transfers and address questions on how to collect funds abroad.

Stablecoins influence broader financial architecture:

• They may reduce demand for correspondent banking relationships, reshaping liquidity corridors.
• By enabling 24/7 settlement, they challenge settlement windows of traditional systems.
• They pose questions on monetary sovereignty as dollar-pegged tokens circulate beyond US jurisdiction; over 99 percent of stablecoins are US dollar-denominated (Bank for International Settlements).

Banks and regulators are assessing systemic implications through pilot schemes and consultation papers. For instance, the ECB’s recent speech underscored the need for robust risk management and harmonized regulatory frameworks to safeguard financial stability (European Central Bank).

• Average remittance cost: 6.26 percent for USD 200 transfers (Remittance Prices)
• Stablecoin market cap: USD 210 billion (end 2024) (BCG Media Publications)
• On-chain stablecoin volume: USD 15.6 trillion (2024) (AInvest)
• Projected daily volume: USD 250 billion by 2028 (McKinsey & Company)
• Institutional adoption: Latin America 71 percent, Asia 56 percent (Payments Consulting Network)

Data-driven adoption continues to accelerate as market participants evaluate stablecoins alongside CBDCs and traditional rails. For users seeking receiving foreign currency, global payment receipt or ways to get paid internationally, stablecoins present a compelling option. Yet execution requires careful management of infrastructure, compliance and counterparty risk. As ecosystems mature, stablecoins may redefine cross-border movement of capital, offering low-cost, rapid settlements to a global clientele.