Stablecoins can't yet solve cross-border payments at scale. Here’s why.

Key takeaways

• While stablecoins offer speed and flexibility, you also need to consider compliance, on/off ramping, scalability, ease of integration, and more.

• Businesses moving money globally need to ensure compliance, reconcile transactions, and keep clear financial records. These are capabilities that most blockchain-based solutions aren’t built for yet.

• For stablecoins to become a viable cross-border payment solution, there needs to be the right infrastructure that can move them securely, compliantly, and at scale.

Are we entering a stablecoin era? More regulators are setting guidelines around its usage, and more companies are using them to access underbanked markets. For example, SpaceX now accepts stablecoin payments from customers in Africa and Latin America.

Compared to traditional banking, stablecoins can be faster and cheaper for cross-border payments. But the reality is more complex, and your financial operations don't end with just transferring funds. You still need to manage compliance, treasury, reconciliation, and reporting.

For stablecoins to become a part of your business, you need infrastructure that can move them securely, compliantly, and at scale. That means being able to do more on one platform – from managing multiple currencies and cash flow, to reconciling payments across systems.

While the era of stablecoins may be coming, only the right infrastructure can unlock their potential. Here’s why stablecoins can’t yet solve cross-border payments at scale.

The promise of stablecoins

Stablecoins are a type of cryptocurrency that aims to maintain a stable value by pegging their value to another asset, such as fiat currencies and commodities. They are a fast, inexpensive way to move money into markets where traditional banking falls short. Their programmable nature could also open doors to new types of financial services, though much of that potential is still emerging.

Fast and low-cost transfers

Stablecoin transactions settle almost instantly on blockchain networks, bypassing traditional banking networks, middlemen, and related fees. While this is promising, there are also fintechs that offer high-speed transfers for fiat currencies, sometimes at low or no cost.

Access to new markets

In regions with currency restrictions or limited banking infrastructure, businesses can use stablecoins to bypass local banking limitations and reach customers or suppliers who may otherwise be excluded from the global economy.

Programmable by design

Stablecoins can be plugged into smart contracts to automate payment flows, such as recurring payouts and conditional transfers. It’s worth noting that some fintechs offer payment API solutions that can also automate recurring payments.

Stack financial services

Stablecoins can be layered with other financial services, such as lending, settlements, and escrow.  Fintechs go further, providing multiple financial services directly by consolidating treasury, payments, and expense management on a single platform. 

Why stablecoins can’t scale cross-border payments yet

While stablecoins offer promise, there are still barriers to widespread adoption. Here’s why.

Regulation is still catching up

Payments are built on trust, and trust starts with regulation. For instance, a customer making a stablecoin payment wants to know that sufficient regulations are in place to protect their funds and payment information, no matter where they’re purchasing.

But today, the rules governing stablecoins are fragmented. While frameworks like the EU’s Markets in Crypto-Assets (MiCA) and the US’ GENIUS Act are steps forward, many markets still lack clear guidance. Stablecoins operate in a regulatory patchwork – what’s allowed in one jurisdiction may be restricted in another, and that creates uncertainty and risk. For example, a business may be able to accept stablecoin payments readily in one market, but need separate licenses to do so elsewhere. Without clear, consistent guidelines, it can slow down payments and add extra compliance work.

For stablecoins to really support your global payments, you’ll need more than just a payment rail: consistent licensing, compliance, and controls across markets are also required. Only then can you move money legally and securely, at scale.

Compliance is a business liability

Unlike fiat currencies, stablecoins are often acquired through peer-to-peer transfers or unregulated platforms, making it difficult to verify the source of funds. Not knowing the source makes it harder to ensure that funds are clean and legitimate, which could trigger more anti-money laundering (AML) and counter-terrorism financing (CTF) checks. These additional checks can slow settlements and create friction during on/off-ramping stablecoins.

On/off-ramping stablecoins is complex and costly

Stablecoin transfers on-chain are fast and cheap, but what about when you need to access those funds in the real world? Eventually, you might want to convert, or “off-ramp”, your stablecoins into a local fiat currency to pay employee salaries, rent, and loan repayments.

On/off-ramping usually involves middlemen like exchanges or payment providers, which add fees, delays, and compliance checks – especially when ‌stablecoins ‌don't have clear, traceable sources. Regulated options to convert stablecoins into local currencies are limited. Relying on decentralized or unregulated exchanges can add more risk.

In practice, stablecoins are only fast and low-cost within the blockchain ecosystem. Once funds move in or out, it becomes costlier and more complex. Without an easy way to on/off-ramp stablecoins into fiat (and vice versa), integrating stablecoins into everyday business payments will remain a challenge.

Stablecoins still make up just 1% of daily transfer volumes

Even as stablecoins become more popular, most global transfers still happen in fiat.

Think about when you last made a payment using a digital currency. If you’re like most people, you might never have. Outside of crypto-native communities, most consumers have little reason to use stablecoins. Credit cards, digital wallets, and real-time bank transfers already offer fast, secure, and regulated payments with fraud protection. Without significant demand, merchants have little incentive to offer stablecoins as a payment option. And without ‌demand on both sides, stablecoin still faces a long road to going mainstream.

What really powers cross-border payments at scale

Cross-border payments are more than just transferring funds. Behind every transaction sits complex workflows. Are the funds compliant? Does your payment provider let you manage funds across different entities? Can you manage multiple currencies? Is it easy to reconcile payments across different systems? To truly power cross-border payments, you need a platform that connects licensing, treasury, reporting, and risk management:

Regulatory licensing and compliance frameworks 

Moving money across borders isn’t just about connecting two endpoints. You need providers with the right licenses and compliance frameworks in each market to ensure you move funds legally and securely.

Treasury and liquidity operations

When your business moves money at scale, you need to juggle currency conversions, liquidity, and working capital across multiple currencies and systems.

Traditional financial institutions and fintechs already provide the infrastructure that does these things. Stablecoins, in contrast, are usually held on exchanges or other platforms that still need to be integrated with wider financial systems to offer the same capabilities.

Reconciliation, tax reporting, and audit trails

Every payment leaves a paper trail – one that needs to be recorded, reconciled, and reported for accounting, taxes, and audits. Finance teams need robust systems with clear audit trails that integrate into existing workflows. While blockchains offer transparency, most stablecoin solutions lack the structured reporting and integration that you need to close books, file taxes, and meet audit standards. 

Customer onboarding and risk management

Payments also require safeguards. Know Your Customer (KYC), Anti-Money Laundering (AML) checks, transaction monitoring, and fraud detection all work to protect you and your customers. Many stablecoin platforms don’t have these controls built in, and that can create risks and reputational damage for you.

The key to stablecoins’ growth? Infrastructure that’s built to scale

Stablecoins show what’s possible: faster settlement, programmable money, lower costs. But they can’t replace the infrastructure businesses rely on to move money globally today. Speed alone won’t solve for scale.

To scale payments globally, you need more: infrastructure that’s regulated and baked into your day-to-day operations. It should support clean, compliant money movement wherever you operate. And it should give you the flexibility to adopt new payment rails, like stablecoins, when the time is right. That’s what future-ready infrastructure looks like.

And that’s where Airwallex operates. Our infrastructure lets you move money faster and cheaper, securely and compliantly. Transfers are near-instant, and free or low-cost using local rails in 120+ countries – and you can’t beat faster than instant and cheaper than free. Built-in compliance and direct integration into existing financial workflows mean you can get started right away. That’s speed built for global businesses.

Frequently asked questions

Can stablecoins replace traditional cross-border payment systems for global businesses?

Stablecoins can complement existing payment systems, but are unlikely to replace them. While stablecoins offer speed and flexibility, they still face challenges like unclear regulations and complex on- and off-ramping processes. Stablecoin providers also don’t yet handle the full range of business needs, like compliance, multi-currency treasury, reconciliation, and reporting. 

Why is regulatory compliance a key challenge for using stablecoins in business payments?

Stablecoins operate across fragmented and evolving regulatory frameworks. Without consistent licensing, compliance, and reporting standards, businesses face operational, legal, and AML/CTF risks that can delay payments and complicate audits.

What are the hidden costs of using stablecoins for cross-border transactions?

While on-chain transfers can be fast and low-cost, on- and off-ramping introduce fees, delays, compliance checks, and FX volatility. Most businesses still need secure and scalable systems to convert stablecoins into local currencies.

What should businesses look for in cross-border payments?

Businesses should look for a robust infrastructure that does more than move money. It should combine compliance, treasury, reporting, and risk management into one system that works globally and across currencies. This ensures that speed doesn’t come at the cost of control or security.