Technology’s influence is growing exponentially, and it has already modernized countless industries—from medicine and commerce to manufacturing and agriculture. Yet cross-border payment systems remain trapped in the past as legacy infrastructure adds unnecessary complexity to global money movement.
International payments should be fast, affordable and seamless. Stablecoins offer an alternative to traditional payment rails with real-time settlement, lower fees, increased transparency and greater accessibility.
These advantages have helped stablecoin adoption surge across businesses and financial institutions, with the total stablecoin market cap surpassing $210 billion earlier this year. In 2022 alone, fiat-backed stablecoins processed almost $7 trillion, surpassing Mastercard and Paypal in transaction volume.
What are Stablecoin Payments?
Stablecoins are a type of digital currency designed to maintain the value of fiat assets, like USD or EUR, or assets like commodities. Pegging the value of a stablecoin to a fiat asset reduces the price volatility that may be associated with some cryptocurrencies, making stablecoins a practical choice for payments. They provide the best of both worlds: the reliability of traditional currency and the efficiency of blockchain technology.
For businesses and financial institutions, stablecoins present an opportunity to streamline international transactions. Unlike traditional fiat-to-fiat payments, which often require multiple intermediaries that pile on fees and slow settlement times, stablecoin cross-border payments are direct and settle in real-time. This instant settlement capability, combined with lower costs and fewer failed transactions, makes them an ideal asset to move value around the world.
Stablecoins also act as a gateway into the digital asset ecosystem, allowing businesses and individuals to access crypto on-ramps without the potential exposure to crypto price swings. They create a bridge between traditional finance and decentralized finance (DeFi), making it easier for enterprises to integrate digital asset payments into their existing systems.
Benefits of Stablecoin Payments
Faster, Smarter Payments
Unlike traditional payment rails, which only operate during banking hours and often take days to fully settle, stablecoins offer real-time settlement via blockchain and 24/7/365 market access, including on weekends and holidays. For businesses handling global supplier payments or payroll, the always-on, instant nature of stablecoin payments can eliminate liquidity bottlenecks and dramatically improve cash flow.
And because stablecoins can be programmed using smart contracts—a blockchain application that automates a predefined execution once conditions are met—payments can be automated, reducing administrative overhead and enabling financial innovation in areas like digital invoicing and DeFi applications.
Lower Cost, More Reliable Payments
The total value of a traditional cross-border payment can be eaten up by currency conversion costs, correspondent banking charges, intermediary fees, failed payment fees and more. By using stablecoins for cross-border payments, there are fewer intermediaries in the payment flow which can save businesses valuable time, resources and capital.
Stablecoins also reduce the risk of failed transactions. In traditional payments, intermediary errors or compliance rejections can result in a payment failure, incurring costly chargebacks and delays. Because stablecoin payments operate on transparent blockchain networks, the process is streamlined and payments can be executed as intended.
Enhanced Security
With blockchain technology, transactions are immutable and publicly verifiable. This creates an additional layer of security and compliance with stablecoin payments that traditional payment systems cannot match. Users benefit from real-time auditability and can track payments with complete transparency.
Expanded Accessibility
Stablecoins also make financial services more accessible to individuals and businesses in emerging markets. In regions where banking infrastructure is limited or unreliable, stablecoins offer an affordable, accessible way to transact globally. And the stability of stablecoins can be reassuring for users and aid in market penetration. This combination of confidence and accessibility make stablecoins a powerful enabler of financial inclusion.
Not only are communities in emerging markets able to access a wider range of financial services with stablecoin payments, providers can expand into challenging corridors and offer services to a wider range of customers. The proliferation of mobile money usage in developing markets presents a strong opportunity for digital-first providers like fintechs and neobanks.
How Stablecoin Payment Flows Work
Stablecoins serve as trusted on-ramps and off-ramps between fiat and digital assets, making them a critical component of modern payment systems. They can also act as a bridge currency between two fiat currencies, with trusted, compliance-focused payment networks streamlining transactions outside of legacy payment rails.
For example, a business moving money from the U.S. to the EU can leverage a solution that on-ramps USD to stablecoins and then off-ramps stablecoins to EUR; alternatively, if a business already holds stablecoins, they can tap into a solution that offers stablecoin off-ramps and third-party payouts in their preferred currency and even offer this capability to their customers.
For businesses and institutions, stablecoins enable seamless access to the digital asset ecosystem, whether for payments, remittances or liquidity management. However, businesses need to consider a few key factors when integrating stablecoins.
The blockchain on which a stablecoin operates affects its transaction speed, fees and accessibility. So, users should carefully evaluate and choose a stablecoin based on desired features and functionality. Additionally, secure custody solutions may be necessary to store stablecoins safely, particularly for institutions handling large transaction volumes.
What to Look for in a Stablecoin Payments Platform
Not all stablecoins—or the platforms that support them—are created equal. For businesses and financial institutions looking to integrate stablecoins payments, choosing the right provider is essential.
A reliable stablecoin payments platform should prioritize compliance, transparency and interoperability. More frameworks for stablecoin regulation are emerging, making it crucial to work with partners that adhere to strict financial regulations and maintain transparent reserve backing. The best platforms also offer global payout capabilities, allowing businesses to seamlessly send and receive payments across multiple markets.
Stablecoins for Cross-Border Payments with Ripple
Ripple has been a leader in enterprise blockchain solutions for over a decade, and its stablecoin offering, Ripple USD (RLUSD), is setting a new standard for institutional-grade stablecoin payments. Issued under a New York Limited Purpose Trust Company Charter, RLUSD is 100%-backed by US dollar deposits, government bonds and other cash equivalents and is audited monthly by BPM, a leading accounting and consulting firm.
RLUSD is now fully integrated into Ripple Payments, a platform that has already processed $70 billion in transaction volume across 90+ payout markets. Designed specifically for enterprise and institutional use, RLUSD offers instant settlement for cross-border payments, integration into DeFi protocols and liquidity access for remittances and treasury operations.
Unlike stablecoins built primarily for retail users, RLUSD is tailored to high-value financial transactions, with a focus on compliance, security and transparency.
Already available on global exchanges like Revolut, LMAX, and Zero Hash, RLUSD is making stablecoin payments more accessible to businesses worldwide. Ripple customers like BKK Forex and iSend are using it to streamline global payment flows, and leveraging Ripple’s global payout network, which represents more than 90% of daily FX markets.
With Ripple Payments and RLUSD, enterprises can confidently enlist stablecoins for cross-border payments, gaining access to a scalable, secure and compliance-focused solution for the next era of global finance.
