Traditional giants and crypto companies face off as stablecoins may reshape the $900 billions cross-border remittance market
BlockBeats News, January 17 — As the application of stablecoins in cross-border payments accelerates, a global remittance market worth about $900 billion is facing restructuring. Industry insiders point out that stablecoins, leveraging blockchain technology, can significantly reduce the cost and time of cross-border transfers and are expected to challenge traditional remittance systems represented by Western Union.
According to World Bank data, the average fee for cross-border remittances is still above 6%, which is a particularly heavy burden for low-income groups sending money to developing countries. Experts believe that stablecoins enable peer-to-peer transfers via digital wallets, with fees and friction significantly lower than traditional channels.
On the regulatory front, U.S. President Trump signed the GENIUS Act in July, establishing a federal regulatory framework for stablecoins and promoting their entry into the mainstream financial sector. Since then, traditional payment and remittance institutions, including Western Union and PayPal, have begun to develop stablecoin-related products.
Analysts point out that traditional remittance institutions possess global customer networks and mature compliance systems, 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 certain exchanges) are more flexible in technology and product iteration, but still face challenges in brand trust and regulatory implementation.
The market generally believes that competition in the remittance sector for stablecoins will evolve into a three-way game among traditional financial institutions, crypto-native companies, and fintech platforms. As regulatory rules are gradually refined, the penetration rate of stablecoins in the global remittance market is expected to continue rising this year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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