Stablecoins Revolutionize Global Payments by Banks and Fintechs

Stablecoins are rapidly transforming global payments as banks and fintechs seize regulatory clarity to offer instant, low-cost cross-border transfers. Major banks like JPMorgan, Bank of America, Citigroup and Wells Fargo are exploring joint stablecoin issuances, while firms such as Stripe, PayPal (PYUSD), ALT 5 Sigma and Zeebu deploy commercial solutions. Leading stablecoins USDT and USDC processed $27.6 trillion in 2024—a 59% year-on-year increase—and now account for 60–80% of crypto transaction volume. Businesses report 60% lower fees and near-instant settlement compared to traditional SWIFT transfers, which cost on average 6% and can take up to five days. New yield-bearing stablecoins offering up to 5% returns could replace traditional deposits and cut industry costs by $26 billion annually by 2028. Regulatory frameworks like the US GENIUS Act, EU’s MiCA and emerging Asian and Middle Eastern guidelines provide clear compliance paths, reducing legal risks. With stablecoins bolstering USD dominance, enhancing liquidity management, and enabling asset tokenization, financial institutions are gearing up for a payments revolution that aims to serve over one billion unbanked individuals worldwide.