For decades, the international monetary system has struggled with inefficiencies in cross-border payments. Traditional methods rely on outdated systems that are slow, expensive, and complex, creating barriers for individuals and businesses. Transactions often depend on a network of correspondent banks following SWIFT standards, requiring multiple currency conversions. This process drives up fees and delays settlement times — typically three to five business days.
Costs from intermediaries, banks, and foreign exchange services further reduce the funds received, especially in developing countries. In contrast, solutions like cryptocurrencies and tools such as crypto paper wallet offer a more direct, cost-effective alternative for cross-border transactions, bypassing many of the traditional hurdles.
Digital financial technologies have brought some improvements, but blockchain technology and stablecoins have revolutionized cross-border payments.
What are stablecoins?
Stablecoins address the volatility of cryptocurrencies like Bitcoin and Ethereum by maintaining a stable value. They allow users to stay in the crypto ecosystem without being exposed to price swings or needing to convert back to traditional currencies. Stability is maintained through mechanisms like fiat backing, cryptocurrency reserves, or algorithmic models. Fiat-backed stablecoins, pegged to currencies like the US dollar, are the most popular due to their reliability.
Volatility has long hindered mainstream cryptocurrency adoption, but stablecoins have gained traction for their practical uses, especially in cross-border payments.
Demand has surged, with stablecoin market capitalization growing from $5 billion in 2020 to $200 billion by 2025, led by Tether (USDT) and USD Coin (USDC), which hold over 90% of the market (as of March 2025). This growth highlights the need for efficient, low-cost payment systems, and digital currency wallet solutions play a key role in enabling seamless transactions and accessibility.
Stablecoins transform cross-border payments
Stablecoins are ideal for cross-border payments, especially in B2B transactions, remittances, and liquidity management. Unlike traditional remittance systems, which often involve high fees, exchange markups, and slow settlements, stablecoins offer faster, cost-effective alternatives. Blockchain networks also improve transparency and automation in transactions by supporting detailed payment data like invoice references.
This innovation is particularly impactful in regions with limited financial infrastructure. Stablecoins enable seamless fund transfers without relying on traditional banks and improve liquidity in emerging markets, offering stability in economies prone to currency fluctuations or hyperinflation. By promoting financial inclusion, stablecoins are reshaping global payments.
Mainstream adoption of stablecoins
Major financial institutions are embracing stablecoins, further proving their transformative potential. Companies like Visa, Mastercard, PayPal, and traditional banks have integrated stablecoins into their systems. For instance, Stripe’s $1.1 billion acquisition of Bridge Network, a stablecoin API platform, highlights the growing importance of this technology.
Additionally, the rise of crypto collateral loans has further solidified the utility of stablecoins, as they provide a reliable asset for securing loans in the crypto space. Stripe now charges just 0.1% to 0.25% per stablecoin transaction, a competitive rate compared to traditional card fees.
PayPal has introduced its own stablecoin, PYUSD, and completed its first B2B transaction using the currency. Circle has connected its USDC stablecoin to payment networks in Brazil and Mexico, while Latin American exchange Bitso offers stablecoin services through its subsidiary, Juno. Ripple’s institutional stablecoin RLUSD and Revolut’s plans to launch its own stablecoin show broader trends toward integrating digital currencies into mainstream finance.
These developments lower costs, speed up settlements, and position stablecoins as a key pillar of the evolving global payments system.