Regulated stablecoins are transforming cross-border payments by reducing transaction costs from $30-50 to under $0.01 and settlement times from 2-5 days to seconds. Banks and payment processors can leverage stablecoins for 24/7 instant settlements, improved liquidity, and new revenue opportunities in the $150 trillion global payments ecosystem.
Discover how regulated stablecoins are transforming global finance—cutting costs, delays, and complexity for banks and processors.
Simplifying cross-border payments
Imagine cross-border payments being as simple and seamless as firing off a text—instant, inexpensive, and straightforward.
For banks, payment processors, and fintech innovators, this isn’t just a futuristic dream. Thanks to regulated stablecoins (explained below), it’s quickly becoming the new standard in global payments. At Brillio, where I serve as CTO for Banking, Financial Services, and Insurance, I’ve had a front-row seat to how regulated stablecoins are reshaping the $150 trillion cross-border payments ecosystem. Let’s unpack why this shift matters—and what it means for the future of finance.
The problem: A broken system
The global economy moves trillions daily, yet the current payment system is stuck in the past. Why?
- High Costs: Fees hit $30–$50 per transfer.
- Middlemen: Multiple banks take cuts, reducing efficiency.
- Opacity: Tracking funds is a challenge.
- Delays: 2–5 days to settle transactions.
Stablecoins are the solution—a digital expressway for money movement.
What are stablecoins?
Stablecoins, as the name suggests, are a type of digital currency designed for stability.
Unlike traditional cryptocurrencies that can swing wildly in value, stablecoins are pegged 1:1 to fiat currencies like the US dollar or Euro—and backed by cash or liquid assets to maintain that peg. The result? A trusted, fast-moving digital asset ideal for payments and settlements.
Here are some examples:
- USDC: A go-to for institutions and fintechs
- Stablecoins from major financial players for enterprise use
- PayPal USD (PYUSD): Bridging traditional and digital payments
- EUROC, Tether, and more
Running on blockchain, they enable 24×7 global transfers with near-instant settlement.
Regulation: Building trust
Recent laws like the US GENIUS Act, Europe’s MiCA, and frameworks from Singapore and Japan have turned stablecoins into regulated tools.
- Full Backing: 1 stablecoin = $1 in reserves
- Audits: Independent checks ensure transparency
- Redemption: Holders can convert to fiat anytime
- Compliance: KYC or AML and sanctions screening are mandatory
This shift makes stablecoins a reliable option for financial institutions.
A Gamechanger for banks and processors
For banks and payment processors, stablecoins are an opportunity, not a threat. Here’s why.
- New Revenue: Issue stablecoins or partner for custody and transaction fees.
- Liquidity Boost: Eliminate pre-funded accounts, freeing capital for lending.
- Faster Settlements: Offer clients real-time cross-border payments.
- Innovation: Use smart contracts for escrow or tokenized finance.
- Competitive Edge: Provide 24/7, low-cost rails to outpace rivals.
- Partnerships: Integrate with fintechs for broader reach.
Example: A bank cuts cross-border costs by 90% using stablecoins, while a processor enables instant merchant payouts.
Stablecoins versus traditional payments
Stablecoins slash middlemen, costs, and friction—making payments as smooth as the internet.
Let’s break it down:
- Speed: 2–5 days (traditional) vs. seconds to minutes (stablecoins).
- Cost: $15–$50+ per transaction vs. < $0.01 network fees.
- Availability: Banking hours vs. 24x7x365.
- Transparency: Limited tracking vs. real-time, on-chain visibility.
- Intermediaries: Multiple banks vs. direct peer-to-peer.
- Pre-funding: Required (Nostro or Vostro) vs. not needed.
Real-world impact
Stablecoins are ideal for regulated financial services.
- B2B trade: Instant settlements and faster supplier payments without FX delays.
- B2C payouts: Global freelancer payments in minutes, not days.
- Remittances: Low-cost, transparent transfers to underserved markets.
Compliance is built-in. Stablecoins embed trust:
- KYC or AML at the wallet level
- Travel Rule and sanctions compliance
- Smart contracts for secure logic (e.g., escrow)
The future is now
Stablecoins don’t represent hype—they are a foundation banks and processors can build on.
Stablecoins are redefining finance with:
- Streamlined cross-border settlement
- Tokenized FX and on-chain treasury management
- Interoperable digital wallets
They’re not replacing the system—they’re upgrading it for speed and openness. Explore how stablecoins can transform your operations. Let’s connect to dive deeper.
