Stablecoins Cut Cross-Border Payment Costs by Over 6%, Drive Financial Inclusion

Stablecoins are emerging as a pivotal technology, not as a standalone product, but as a critical enabler for enhanced financial services worldwide. This perspective was recently articulated by commentator Chuk, who stated, "People don’t want stablecoins. They want Dollars (in global south), Faster settlement, 24/7 payments, Lower fees, Reliable payments, No prefunding obligations, Access to investment opportunities, Cheaper credit." This highlights the demand for fundamental improvements in financial infrastructure that stablecoins are uniquely positioned to address.

Traditional cross-border payments have long been plagued by high costs and inefficiencies, particularly impacting regions like the Global South. A 2025 World Bank survey indicated that the average cost for international remittances stands at 6.49% of the amount sent. In stark contrast, stablecoin transactions often facilitate transfers with fees under 1%, offering significant savings and ensuring a larger portion of funds reaches recipients, according to a Fireblocks report.

Leveraging blockchain technology, stablecoins enable near-instantaneous settlement, typically within minutes, and operate continuously, 24/7. This bypasses the limitations of traditional banking hours and the multi-day delays often associated with multiple intermediaries. Visa, for instance, has expanded pilots in 2025 to integrate on-chain stablecoin settlement, aiming for round-the-clock operational efficiency and liquidity.

The inherent transparency of blockchain-based stablecoin transactions contributes to more reliable payments, with every transfer recorded on a verifiable ledger. This direct, peer-to-peer nature also implicitly addresses the desire for "no prefunding obligations" for intermediaries, streamlining the payment process. Moreover, dollar-pegged stablecoins provide a crucial "financial lifeline" in economies experiencing high inflation or capital controls, offering a stable alternative to volatile local currencies, as noted by the IMF.

Beyond transactional benefits, stablecoins are fostering new avenues for investment and credit, particularly within the Decentralized Finance (DeFi) ecosystem. These platforms utilize stablecoins for lending, borrowing, and yield farming, providing users with opportunities for passive income and access to credit that might otherwise be inaccessible through conventional banking. Financial institutions are also exploring "on-chain, over-collateralized credit solutions" to expand global credit access, especially in underserved regions, according to GFT.

As stablecoin adoption grows, regulatory frameworks are evolving to ensure stability and consumer protection. Initiatives such as the U.S. GENIUS Act and Europe's MiCA aim to establish clear guidelines for stablecoin issuance and reserves, balancing innovation with the need for robust oversight. These developments are crucial for integrating stablecoins more broadly into the global financial system, transforming them from a niche crypto tool into a foundational element of modern finance.