Payments

12 min read

Published on Sep 13, 2025

Stablecoins in Cross‑Border Payments: Benefits, Risks, and 2025 Trends

Due Team

Stablecoins in cross-border payments cut fees, settle in minutes, and improve transparency.

International money movement is riddled with friction. A decade into the 21st century, you can beam a 4K movie around the planet in seconds, yet sending €500 to a supplier across the Channel might take a week and cost almost 7% of the principal. That mismatch is what stablecoins promise to fix. By anchoring digital tokens to fiat currencies and settling transactions on a blockchain, stablecoin payments offer a radical simplification of cross-border commerce.

The goal of this piece is to unpack what they are, why they matter, and how Due is using them to deliver the next generation of borderless financial services. We explain how blockchain cross-border payments work, where stablecoins in cross-border payments fit, show the adoption data, and spell out the risks and rules.

Quick Take: Why Stablecoins Matter for Cross‑Border Money Movement

High cost of traditional remittances: Legacy rails are expensive. A World Bank survey of money transfer operators in 2025 shows that sending international remittances costs an average of 6.49% of the amount. Even sending $500 through formal corridors in early 2025 costs roughly 4.26%.
Slow settlement and fragmented infrastructure: Payments cross a patchwork of correspondent banks. The Financial Stability Board notes that cross‑border payments are characterised by high costs, low speed, limited access and insufficient transparency. Multiple intermediaries, time‑zone mismatches and manual compliance checks stretch settlement out over several business days.
Stablecoin advantage: Stablecoin transactions settle peer‑to‑peer on a public blockchain in minutes or seconds, often 24/7. Early pilots from Visa and Mastercard show that stablecoin settlement can deliver near‑instant cash flows and reduce operational complexity. Remittance fees via stablecoin rails are typically under 1%.
Regulation is catching up: Legislation such as the U.S. GENIUS Act and Europe’s MiCA now require stablecoin issuers to hold 1:1 reserves and submit to anti‑money‑laundering controls. Properly regulated stablecoins offer a credible alternative to SWIFT and card networks.

What Are Stablecoins and How Do They Work in Payments?

Stablecoins are digital tokens designed to mimic the value of a fiat currency such as the U.S. dollar or euro. Unlike volatile cryptocurrencies, they are typically backed by cash equivalents or short‑dated Treasuries held by an issuer or custodian. Because each token is redeemable for a fixed unit of the underlying currency, stablecoins maintain a stable price on exchanges. When used for payments, they enable a layer of blockchain cross‑border payments that combine fiat stability with the programmability of crypto.

Mechanics of a stablecoin payment: imagine a U.S. freelancer paying a designer in Belgium. With a stablecoin transaction, the payer holds tokens (e.g. USDC or EURC) in a digital wallet. They send the tokens directly to the designer’s wallet address, and the transfer is recorded on a blockchain like Ethereum or Solana. There are no correspondent banks or cut‑off windows; the transaction is settled by network validators within seconds. If either party wishes to convert the stablecoins back to bank deposits, regulated issuers redeem the tokens for the underlying currency.

Stablecoin international payments can be executed around the clock, ignoring banking holidays and time zones. They are also programmable: smart contracts can release funds only when conditions are met or integrate compliance checks. Such programmability is central to emerging use cases like automated invoices, escrow and supply‑chain finance, themes we will revisit later.

Problems with Traditional Cross‑Border Payments

Before celebrating tokenised money, it’s worth understanding what it solves. The current cross‑border system, epitomised by SWIFT wires and card networks, suffers from structural inefficiencies:

High costs: The average global remittance cost remains stubbornly high at 6.49 %. Even credit card‑based international transfers often involve 2–3% interchange fees and hidden FX spreads. McKinsey notes that money passes through multiple intermediaries, each taking a cut.
Slow settlement: A SWIFT payment can take one to five business days because correspondent banks must reconcile accounts, perform sanctions screening and manage liquidity. Holidays and time zones further slow settlement.
Limited access: Small businesses and freelancers may not have access to multi‑currency bank accounts or may be excluded from traditional correspondent banking. The FSB notes that cross‑border payments suffer from limited access.
Poor transparency: Payers often cannot see how many intermediaries handle their funds, what the FX rate is, or why fees vary by corridor. As the World Bank highlights, hidden mark‑ups erode the value of remittances.

These limitations have spurred fintechs and digital currency innovators to search for alternatives. The G20 roadmap on improving cross‑border payments emphasises linking faster payment systems, harmonising data standards and reducing intermediaries, but the industry‑led adoption of stablecoin transactions is moving faster.

Inclusion and Access

Stablecoin transactions do not require a traditional bank account. Anyone with an internet‑enabled phone can receive a stablecoin payment and convert it into local currency via an exchange or a fintech platform like Due. This opens corridors for migrants, freelancers and small suppliers who are underserved by traditional banks.

Stablecoins vs Traditional Payment Rails (SWIFT, Visa, PayPal)

Understanding the differences between payment rails helps decision makers choose the right tool. The table below summarises key attributes of traditional SWIFT payments, card networks and stablecoin transactions. The data builds on the World Bank’s remittance cost survey, Payments Dive’s analysis of average fees and McKinsey’s assessment of settlement times.

Benefits of Using Stablecoins for Cross‑Border Transactions

In 2025, stablecoin international payments are moving from pilot to production. Stablecoin payments address each of the pain points above by combining the benefits of blockchain technology with the stability of fiat currencies. Several advantages stand out.

Faster Settlement

Because stablecoins settle on a blockchain, there are no correspondent banks to reconcile or messages to translate. A transfer from a wallet in Brazil to one in Kenya clears in minutes, not days. McKinsey points out that digital tokens transcend banking hours and borders, offering improvements in speed and availability. Visa’s 2023 pilot for stablecoin settlement proved that on‑chain settlement can operate seven days a week.

Lower Fees and FX Costs

With no correspondent banks and minimal overhead, stablecoin remittance fees are often below 1%. Payments Dive reports that stablecoins reduce transaction costs and friction compared to legacy systems. Because users can hold stablecoins denominated in the target currency, they avoid double conversions, and blockchain networks provide near‑real‑time exchange rates with no hidden mark‑ups, for small businesses sending frequent invoices across borders, shaving even a few percentage points makes the difference between profit and loss.

Transparency and Programmability

Every stablecoin international payment is recorded on a publicly verifiable ledger. Parties can trace digital currency cross-border flows in real time and know exactly when they arrive. Programmability allows conditional releases (e.g. automatically triggering delivery once goods are confirmed), escrow functions, and integration with supply‑chain management. The ability to embed compliance checks or tax calculations directly into payment flows is particularly attractive for fintechs.

Inclusion and Access

Stablecoins vs Traditional Payment Rails (SWIFT, Visa, PayPal)

Risks and Challenges of Stablecoin Payments

No technology is a panacea. Stablecoin payments introduce new risks while mitigating others. Key risks associated with stablecoin remittance include reserve quality, regulatory shifts, chain congestion, AML/KYC, and key custody. Mitigate with audited issuers and robust controls.

Regulatory Uncertainty

The regulatory landscape is evolving fast. The GENIUS Act in the United States, signed on 18 July 2025, restricts stablecoin issuance to insured depository institutions and mandates 1:1 reserves. MiCA in Europe and Hong Kong’s stablecoin ordinance impose similar reserve and licensing requirements. While such frameworks enhance stability, they also create compliance burdens for smaller issuers and may limit innovation. Emerging markets may lack clear guidelines, making it difficult to onboard end users or issue redemptions in local currency.

Reserve Quality and De‑Pegging Risk

Stablecoins are only as safe as the assets backing them. If issuers hold risky or illiquid collateral, redemption requests can trigger a run, causing the stablecoin to lose its peg. McKinsey warns that operating outside robust regulatory frameworks raises the risk of de‑pegging and that token holders generally lack legal entitlement to the underlying reserves. The collapse of algorithmic stablecoins in recent years underscores this danger.

Cybersecurity and Private Key Management

While blockchain networks themselves are hard to tamper with, end users bear responsibility for safeguarding their private keys. Stolen keys mean stolen funds. Multi‑party computation and hardware wallets help, but user education remains a challenge. Institutional users mitigate this by partnering with custody providers, yet retail users may not have such protections.

Financial Integrity and Macro‑economic Implications

The FSB warns that large‑scale cross‑border stablecoin adoption in 2025 exacerbated capital flight from emerging markets and undermined local monetary policy. If residents substitute local currency with a foreign‑currency stablecoin, central banks lose control over the money supply. Additionally, bad actors could exploit cross‑border anonymity for illicit finance, which is why anti‑money‑laundering checks and transaction monitoring remain crucial.

Stablecoin Use Cases in Cross‑Border Payments (2025)

Stablecoins aren’t just theoretical; real-world pilots and metrics show that stablecoin adoption in 2025 is transforming cross-border transactions today.

Visa and Mastercard Pilots

Visa has been piloting stablecoin settlement since 2023. Its solution allows clients to settle obligations in USDC on the Ethereum and Solana networks, enabling 24/7 settlement and freeing up liquidity. The company believes programmable digital money will underpin the next wave of global payments. In 2025, Visa expanded these pilots, integrating on‑chain settlement with their existing card network so that merchants can receive USDC while consumers pay with a traditional card. Mastercard followed suit in 2025, announcing end‑to‑end stablecoin acceptance, including wallet enablement, card issuance and on‑chain remittances. Its goal is near‑zero cost, real‑time payments that seamlessly plug into existing systems.

Fintech and SME Adoption

The Fireblocks stablecoin report notes that stablecoin adoption in 2025 is widespread, with 90% of surveyed institutions taking action. Cross‑border payments emerged as the top application, with respondents citing unmatched speed and cost‑efficiency. In Latin America, 71% of respondents use stablecoins for cross‑border payments, and globally, 48% cite speed as the main benefit. Another 86% of firms say their infrastructure is ready to support stablecoins. Mizuho reports that stablecoins already account for 5–10% of flows in the U.S.–Mexico remittance corridor and that remittance fees via stablecoin rails are under 1%. For individuals in countries such as Argentina and Venezuela, stablecoins serve as a digital safe haven amid high inflation.

Decentralised Finance and Beyond

Beyond remittances, stablecoins enable decentralised finance (DeFi) primitives like lending, yield farming and derivatives. But mainstream businesses are beginning to integrate them too. Payroll providers offer stablecoin salaries, supply‑chain platforms settle invoices on-chain, and e‑commerce marketplaces use stablecoin payouts to circumvent traditional acquiring fees. As infrastructures like Visa, Mastercard and Due mature, the distinction between “crypto” and “finance” is fading. Instead, stablecoin transactions are becoming another payment rail, one that may eventually rival SWIFT and card networks.

Why Due Leads in Stablecoin‑Ready Payments

Due is not just embracing stablecoin payments; it’s building its entire cross-border platform for stablecoin international payments.

Borderless Multi‑Currency Accounts Built on Stablecoins

Due’s multi‑currency accounts allow customers to hold balances in USDC and EURC-regulated stablecoins pegged to the U.S. dollar and euro. Users can open an account online in minutes and fund it via bank transfers, mobile money or crypto deposits. Because settlements occur on blockchain rails, users avoid the delays of SWIFT. The platform is non‑custodial: clients control their private keys, meaning they maintain self‑sovereignty. For crypto‑native organisations, DeFi projects and freelancers, this is a game‑changer.

Near‑Zero Fee International Transfers

Due lets merchants and freelancers get paid by bank transfer, mobile money, or digital wallets across 80+ markets, and you can accept USDC/EURC in minutes or auto-settle to local currency at near-zero fees. From an EURC balance, you can send EUR via SWIFT to 150+ countries, or convert EURC to local currencies with payouts over local rails in 80+ countries, including instant SEPA in Europe. Every transfer shows the exact fee, FX rate, and any network (gas) cost before you confirm, no hidden mark-ups.

Local Bank Details in Over 50 Countries

The platform provides local bank details, IBAN, ACH (account & routing), CLABE, PIX, NUBAN, and GBP account number/sort code, in 50+ countries. Clients can invoice customers as if they had a local bank account, improving acceptance rates and cutting correspondent banking fees. They can also top up their accounts with local currencies and convert them to stablecoins or vice versa.

Integration and Automation

Due offers an API‑first design, allowing businesses to embed international and stablecoin payments into their existing workflows. Automated KYC/KYB verification, real‑time risk monitoring, and SOC 2‑certified infrastructure protect funds while keeping compliance overhead manageable. For SaaS platforms and marketplaces, this means they can focus on product rather than back‑office payments.

Licensed, Regulated and Global

Due operates through locally regulated subsidiaries, Due Payments EOOD in Bulgaria, Due Network S.L. in Spain, and regulated entities in Canada, South Africa, and Brazil, with a U.S. MSB registration. Each subsidiary adheres to local rules and anti‑money‑laundering standards. This hybrid approach, global rails with local compliance, gives clients confidence that their money is safe and that they remain on the right side of the law.

Taken together, these features make Due not just another payment processor but a stablecoin‑ready alternative to legacy FX rails. For businesses that sell across borders, the platform offers a single hub to receive funds in multiple currencies, hold them as stablecoins, and disburse payments instantly, without losing money to hidden fees or slow settlement.

Final Thoughts: Stablecoins as the New Rail for International Commerce

Cross‑border commerce fuels the global economy, but the pipes carrying money have rusted. Stablecoins provide a new rail - faster, cheaper and more transparent. For small exporters, remote workers and fintech firms, they offer a way to move value as easily as sending an email. Regulatory clarity is catching up, risk management tools are maturing, and adoption is accelerating across continents. Platforms like Due are spearheading this transition by embedding stablecoin technology into everyday financial products.

The promise of blockchain cross-border payments, and of stablecoins in cross-border payments, is not just lower fees or faster settlement. It is the ability to build programmable, inclusive digital currency cross-border systems where geography is no longer a barrier. Whether you’re sending salaries across time zones, paying suppliers in developing markets or running a decentralised autonomous organisation, stablecoin transactions could soon become the default. Understanding the benefits, risks and trends today will ensure your organisation is ready for the future of money.

FAQ – Stablecoins in Cross‑Border Payments

What are stablecoins, and how are they used in cross‑border payments?

Stablecoins are digital tokens pegged to fiat currencies. In cross‑border payments, they serve as digital cash that can be sent peer‑to‑peer over a blockchain. Because the token price is anchored to the currency it represents, there is no volatility risk for short‑term transfers. When you make stablecoin payments, you skip correspondent banks and settle directly with the recipient’s wallet. This is why stablecoin payments are gaining traction among freelancers and SMEs.

How do stablecoins reduce international payment fees?

Stablecoins remove intermediary banks and card networks. Transfers move on decentralised rails with minimal overhead, driving fees from typical 4–7% SWIFT wire costs less than $0.01 per transfer on efficient networks. Because you can hold tokens denominated in the destination currency, you avoid double conversions. Platforms like Due are spearheading stablecoins in cross-border payments by embedding stablecoin technology into everyday financial products.

Are stablecoin payments faster than bank transfers?

Yes. Bank transfers can take days because correspondent banks batch settlements, reconcile accounts and abide by business hours. A stablecoin transaction, by contrast, is final as soon as it is recorded on the blockchain, often within seconds. Visa’s stablecoin settlement pilot runs seven days a week. So for most corridors, stablecoin transactions are significantly faster than traditional bank transfers.

Which stablecoins are used for international transactions?

The most widely used stablecoins in cross‑border payments are USDC (pegged to the U.S. dollar) and EURC (pegged to the euro). Tether (USDT) remains the most traded stablecoin globally, but many institutions prefer fully regulated options like USDC because issuers provide regular attestations of reserves. New entrants include regional stablecoins in Latin America and Africa, though their liquidity is still developing. Visa and Mastercard pilots primarily use USDC, and Due relies on USDC and EURC for its multi-currency accounts, while tracking emerging options such as AUSD and USDP as they gain traction.

What are the risks of stablecoins in global payments?

Key risks include de‑pegging due to poor reserve management, private‑key theft, regulatory uncertainty and macro‑financial impacts on emerging markets. Regulatory frameworks such as the GENIUS Act and MiCA mitigate some of these risks by requiring 1:1 reserves and compliance checks. Users should choose stablecoins issued by regulated entities and employ proper wallet security.