As the use of stablecoins in cross-border payment scenarios continues to accelerate, the global remittance market—valued at approximately USD 900 billion—is undergoing a structural transformation. Industry observers note that blockchain-based stablecoin transfers have the potential to significantly reduce both settlement times and transaction fees, exerting a long-term impact on traditional remittance systems.
According to World Bank data, the average fee for cross-border remittances worldwide still exceeds 6%, with costs often even higher for transfers to developing countries. This fee structure places a persistent burden on low-income populations. By contrast, stablecoins enable peer-to-peer transfers via digital wallets, allowing funds to move without reliance on multiple intermediaries and thereby substantially reducing frictional costs.
Regulatory Progress Brings Stablecoins Into the Financial Mainstream
From a regulatory perspective, the development of stablecoins is becoming increasingly institutionalized. In July, U.S. President Trump signed the GENIUS Act, establishing a federal-level regulatory framework for stablecoins and formally bringing them within the scope of financial supervision. This legislation is widely regarded as a milestone in the integration of stablecoins into the mainstream financial system, providing clearer compliance foundations for their use in cross-border payments and remittance services.
Against this backdrop, some traditional payment and remittance institutions have begun exploring stablecoin-related products, seeking to address efficiency challenges posed by new technologies while preserving their compliance advantages. Analysts note that while such institutions benefit from established customer networks and regulatory expertise, their existing business structures may, to some extent, slow the pace of transformation.
Compliance Challenges in a Three-Way Competitive Landscape
At present, competition in the stablecoin remittance space is evolving into a three-way dynamic among traditional financial institutions, crypto-native enterprises, and fintech platforms. Crypto-native players demonstrate agility in technological iteration and product innovation but still require time to build brand trust and achieve regulatory maturity. Traditional institutions, while possessing robust compliance frameworks, face the need to optimize efficiency and cost structures.
In this context, regulatory attention is increasingly shifting from the question of “whether stablecoins are used” to whether transaction behavior itself is transparent, traceable, and auditable. The inherent complexity of cross-border fund flows makes transaction monitoring and risk identification capabilities a critical prerequisite for the large-scale adoption of stablecoins.
From Efficiency Gains to Risk Governance
As stablecoins continue to gain traction in the remittance market, balancing cost reduction with fund security and regulatory compliance will remain a long-term industry challenge. By deploying transaction monitoring systems such as Trustformer KYT, institutions can conduct continuous analysis of on-chain fund flows and transaction patterns, helping to strike an effective balance between efficiency gains and risk governance.
Overall, stablecoins are driving the global remittance market toward greater efficiency. Whether this transformation can achieve sustainable development will ultimately depend on the parallel maturation of regulatory frameworks and compliance capabilities.