Traditional Giants Clash With Crypto Companies as Stablecoins Reshape $900 Billion Cross-Border Payments Market
BlockBeats News, January 17th: As the application of stablecoins in cross-border payments accelerates, a global remittance market of around $900 billion is facing a reshaping. Industry insiders point out that stablecoins, leveraging blockchain technology, can significantly reduce the cost and time of cross-border transfers, potentially impacting the traditional remittance system represented by Western Union.
World Bank data shows that the current average transaction fee for cross-border remittance is still above 6%, posing a heavy burden on low-income groups remitting to developing countries. Experts believe that stablecoins enable peer-to-peer transfers through digital wallets, with costs and friction significantly lower than traditional channels.
On the regulatory front, U.S. President Trump signed the GENIUS Act in July to establish a federal regulatory framework for stablecoins, pushing them into the mainstream financial landscape. Subsequently, traditional payment and remittance institutions including Western Union and PayPal have started to develop stablecoin-related products.
Analysts point out that traditional remittance institutions have a global customer network and a mature compliance system, giving them an advantage in large-scale adoption; however, their existing business models may hinder transformation. In contrast, crypto-native companies and major trading platforms (such as Coinbase and Kraken) are more flexible in terms of technology and product iteration, but still face challenges in brand trust and regulatory compliance.
The market generally believes that the competition of stablecoins in the remittance field will evolve into a three-way game among traditional financial institutions, crypto-native companies, and fintech platforms. As regulatory guidelines gradually improve, the penetration rate of stablecoins in the global remittance market is expected to continue to rise this year.
