Cross-border Payment Landscape with Stablecoins: A Comprehensive 2025 Industry Guide
Stablecoins are making a significant impact on cross-border payments, particularly in emerging markets. According to a recent report, regions such as Latin America, Africa, and parts of Asia-Pacific are seeing a surge in the adoption of stablecoins due to high traditional payment costs, currency volatility, and demand for dollar access[1][4].
In Latin America, about 71% of institutions are using stablecoins for cross-border payments. Countries like Brazil, Colombia, Chile, and Argentina are witnessing significant adoption due to currency instability and high remittance costs[1][4]. Africa, with Kenya and Nigeria leading the way, is seeing active usage driven by demand for faster, cheaper international transfers and dollar liquidity[4]. In Asia-Pacific emerging markets, stablecoins are gaining traction where access to dollar-based services is limited[4].
The benefits of stablecoins are numerous. They offer near-instantaneous settlement compared to days-long traditional transfers, enhanced transparency, and often lower costs compared to traditional correspondent banking systems, making cross-border transactions faster, more secure, and cheaper for users[1][2][4]. Furthermore, stablecoins enable financial inclusion, allowing underserved populations in emerging markets to participate in global commerce with dollar-based assets[1].
However, the use of stablecoins for cross-border payments is not without challenges and risks. Regulatory uncertainty and fragmentation, different jurisdictions having evolving but divergent frameworks, complicate compliance and international scalability[1][3]. Achieving sufficient stablecoin liquidity to reduce costs remains a challenge, impacting pricing competitiveness[2]. Peg fragility, where some stablecoins have shown deviations from their intended peg, undermines trust and stability[3]. There are also concerns about stablecoins enabling capital flight and undermining national currencies, particularly in emerging economies[3]. Lastly, integrating stablecoins into existing financial systems requires technical and operational changes[1].
Despite these challenges, major payment providers and institutions are increasingly validating stablecoins’ potential, emphasizing the need for integrated strategies[1][2][3][4]. The report, written by 14 leaders from key companies across the industry, provides a detailed primer on the state of the cross-border payments industry using stablecoins[1]. It is available in both PDF and digital form, and can be navigated by section[1].
As the market for stablecoins continues to evolve, it's essential to approach their potential with a critical eye. While stablecoins are attracting enthusiasm, some claims about their applications in payments can be overstated[1]. Eric Barbier, CEO and Founder of Triple-A, a B2B digital currencies payments solution provider, notes that while stablecoins are attracting enthusiasm, some claims about their applications in payments can be overstated[1]. On the other hand, Chris Harmse, Co-Founder and Chief Business Officer of BVNK, believes we are entering a period of "escape velocity" for stablecoins as a payments technology[1].
In conclusion, stablecoins are materially improving cross-border payments in emerging markets by providing faster, transparent, and cost-effective alternatives. Addressing the challenges related to regulation, liquidity, stability, and systemic risks will be critical for broad, sustained adoption and impact globally. The report, available on a specific webpage, provides a comprehensive overview of the current state of stablecoins in the cross-border payments industry, including a stablecoins 101 glossary of terms[1].
[1] [Report Name] (Access requires login or an email request for banks whose internal policies impact their ability to sign up) [2] [Source 2] [3] [Source 3] [4] [Source 4]
In the realm of cross-border payments, both the finance and technology sectors are witnessing significant integration with stablecoins, especially in Latin America, Asia-Pacific emerging markets, and Africa. Notably, Kenya and Nigeria are leading the adoption in Africa due to the demand for fast, low-cost international transfers and dollar liquidity.
In Latin America, the finance industry is witnessing a surge in stablecoin usage for cross-border payments, particularly in countries like Brazil, Colombia, Chile, and Argentina, where high remittance costs and currency instability prevail.
