Stablecoins represent a significant step forward in the evolution of cross-border finance, combining the efficiency of blockchain technology with the stability of traditional money. 

Their potential lies in addressing persistent challenges in international payments, such as high costs, settlement delays, and fragmented systems – while also enabling new models of financial inclusion. 

Although regulatory frameworks are still evolving, stablecoins already demonstrate practical use cases that extend well beyond speculation, particularly in regions where access to efficient payment rails remains limited.

Imagine a ride-hailing company wants to pay its drivers in an African or Southeast Asian market; it relies on a prevailing system that is far from instant and most often takes 24-48 hours, or even five business days if it’s a holiday or there are other unforeseen events. 

A typical cross-border payment goes through multiple steps, which makes it slow: the company sends the money, it passes through several banks, and only when it finally reaches the local bank does the driver get confirmation and access to the funds.

This multi-step process forces companies to plan far in advance, setting aside large sums to make what seems like an “instant” payment possible. Any misstep along the way can frustrate drivers, harm the company’s reputation, and result in indirect financial losses due to misallocated capital.

Stablecoins present the opportunity to bypass that friction, enabling payouts that are near-instant and borderless. 

No longer is there a minimum four-step process between multiple entities; it’s from the payer anywhere in the world directly to the local market where they want to pay, it’s 24/7 liquidity with no pre-funding. 

The deployment of resources becomes more efficient, the costs of the business improve, and local settlement can be achieved in far fewer steps than traditional money transfers, unless receivers choose to be sent stablecoin directly without further local settlement.

The potential upside is not small.

Some estimates put the savings at around 7% yearly through better foreign exchange rates, reduced transaction costs, and more efficient liquidity management, as 2% to 5% per transaction can be on related fees alone. That’s not just marginal efficiency; that’s a competitive edge. 

A payments company leveraging stablecoins could scale its total processing volume faster, offer better rates to merchants, and grow market share in regions where traditional finance simply can’t keep up. 

There’s also an emerging angle around FX liquidity. 

In certain markets, dollars in fiat form are scarce, but stablecoins unlock pools of liquidity that simply aren’t available otherwise. For global merchants, this is transformative: the ability to settle in stables could become as important as settling in euros or dollars.

Of course, the risks are real. 

Mistakes in blockchain-based transfers, like sending funds to the wrong wallet, are often irreversible, unlike in traditional banking. The quality and reliability of stablecoin partners are critical, especially in markets where regulatory approval is still patchy. Compliance, tax, and operational risk management need to be ironclad before moving at scale. 

But risks are not unique to stablecoins; they are simply different. The industry has already built strong frameworks for identifying, measuring, and mitigating them. Early adopters know that whitelisting partners, rigorous compliance and disciplined operations are the bedrock of trust in this new infrastructure.

Roughly a quarter of markets have already signed off on stablecoin payouts. 

What was once theoretical is now operational, with a steady daily flow of stables being used to settle transactions. Adoption may still be in its early stages, but the trajectory is clear: stablecoins are undeniably here to stay. 

For global payments companies, the legacy money transfer systems offer some benefits from safety to compliance, but stablecoins will continue to gain ground with faster, cheaper payments that are well-suited to the digital economy.

Stablecoins are no longer just a cryptocurrency experiment. They are an undeniable part of the next chapter in cross-border payments, and the companies that lean in now will be the ones shaping the industry’s future.