Moving money across borders can be a slow, expensive process. Stablecoin payments are one of the few payment advancements with the power to change that. This type of payment compresses settlement into minutes, sidesteps a web of intermediaries, and protects value in places where local currency won’t. The technology is popular with anyone who needs to move funds quickly and safely across borders, such as small businesses and foreign workers who send money back home to their families. Below, we’ll explain how stablecoin remittances work, why they’re beneficial, and what challenges persist.

What’s in this article?

• What is a stablecoin remittance and how does it work?
  
• What are the benefits of using stablecoin payments for remittances?
  
• How do stablecoin remittance transactions actually happen?
  
• Which platforms offer stablecoin remittance services?
  
• What challenges do stablecoin remittances face?
  
• How are stablecoin remittances regulated?
  
• How Stripe Payments can help
  

What is a stablecoin remittance and how does it work?

A stablecoin remittance is an international money transfer sent in a stablecoin. Remittances are funds sent by foreign workers to family members or communities in their home countries. Stablecoins are a cryptocurrency pegged to an asset such as the US dollar or gold. They’re digital tokens designed to hold a fixed value.

To send a stablecoin remittance, the sender converts their local currency to a stablecoin and sends it directly to the recipient’s wallet over a blockchain network. Anyone with a smartphone can receive funds, even without a bank account. The recipient can either hold the money, spend it with businesses that accept it, or convert it to local currency.

These transfers run on open, internet-based rails and settle within minutes, 24/7. The process removes intermediaries (e.g., correspondent banks) and excessive foreign exchange markups. It’s a faster, often cheaper way for people to send money home, with real-time visibility into the transaction’s status.

What are the benefits of using stablecoin payments for remittances?

Stablecoin remittances avoid many of the issues that still plague traditional money transfers. Here are some of the major benefits of using stablecoin payments for this type of transfer.

Lower costs

The global average for remittance fees was 6.49% in 2025 and reached 8.78% in sub-Saharan Africa. Sending stablecoins comes with much lower fees, typically only a few cents for every dollar sent.

Faster delivery

Bank wire transfers can take days to clear. Stablecoins move over blockchain networks that run nonstop. Settlement often happens within minutes, regardless of time zones, weekends, or holidays.

Wider reach

Anyone with internet access and a smartphone can receive stablecoins, even without a bank account. In underbanked regions, that can mean bypassing the traditional financial system entirely and still receiving funds securely.

Stable value

Unlike Bitcoin or other volatile cryptocurrencies, stablecoins are pegged to real-world assets such as the US dollar. That stability shields recipients from currency swings and can protect value in countries that face high inflation or depreciation.

Transparency and security

Every transaction is recorded on a public blockchain, which serves as a record of the transaction for the sender and the recipient. Reputable wallets and providers also offer users strong encryption and control over their funds.

How do stablecoin remittance transactions actually happen?

The mechanics vary by platform, but stablecoin remittances generally follow a similar flow. The process involves the following steps.

Converting to stablecoins

The sender starts by converting their local currency to a stablecoin using a crypto exchange. Their stablecoins are then often stored in a digital wallet.

Sometimes, the conversion is visible to the user so they see the token name and amount. In other cases, the app hides the crypto layer and shows only the fiat value while using stablecoins behind the scenes.

Sending over the blockchain

The sender transfers the stablecoin to the recipient’s wallet address, usually by scanning a QR code or pasting an alphanumeric address. The transfer is confirmed in minutes (sometimes seconds), and the blockchain record makes it easy to track status in real time. These networks run 24/7 so a transfer initiated at 2 a.m. local time is still processed instantly.

Converting or using the funds

Once the stablecoins arrive, the recipient decides how to use them.

They can:

• Cash out to local currency through a crypto exchange

• Hold in stablecoin form to preserve value in high-inflation environments

• Spend directly with businesses or through crypto-linked debit cards

Some providers have built cash–crypto bridges. For example, MoneyGram’s integration with the Stellar network lets recipients walk into a participating branch and swap USDC for cash on the spot, with no bank account required.

The blockchain rail replaces the slow, multi-intermediary chain of correspondent banks, but the user experience still depends on strong on- and off-ramp infrastructure. The process itself depends on good liquidity, local integration, and an effective user interface.

Which platforms offer stablecoin remittance services?

The stablecoin remittance market includes crypto-native startups, established payment companies, and traditional money transfer operators that are building stablecoin rails into their networks. The result is more choices for senders and recipients and a growing network of interoperable rails that make stablecoin transfers increasingly practical at scale.

Here are the types of platforms that have stablecoin remittance capabilities.

Global exchanges and wallet providers

These act as on- and off-ramps in many corridors. Crypto exchanges (global and regional) let the user convert local currency to stablecoins and send them to a recipient’s wallet. Licensed digital wallet apps integrate directly with banks and mobile money systems to allow recipients to swap stablecoins with local currency.

Money transfer companies that embrace blockchains

Traditional players are adding stablecoin capabilities to stay relevant. MoneyGram lets customers send and redeem Stellar USDC via its global retail locations. Other money transfer companies are considering adding stablecoin settlements in markets with volatile currencies. These integrations let customers interact with cash on one end and stablecoins on the other without needing to work with the crypto layer directly.

Specialized crypto remittance startups

Newer entrants are purpose-built for stablecoin-based cross-border transfers. Some focus on high-fee corridors such as Africa–Europe and Gulf–Asia, offering stablecoin transfers that undercut traditional costs. Peer-to-peer platforms like Paxful and Remitano connect senders and receivers who trade stablecoins.

What challenges do stablecoin remittances face?

Stablecoin adoption still presents practical, technical, and regulatory issues. These impact a stablecoin transfer’s speed, cost, and reliability.

Regulatory uncertainty

Some countries have clear frameworks, while others restrict or ban crypto use entirely. Rules differ across borders and sometimes even between states or provinces. A transfer that’s fully compliant in one jurisdiction might exist in a legal gray area in another. This varied environment forces providers to either limit service to certain regions or build compliance systems that adapt to dozens of legal regimes.

On- and off-ramp and liquidity gaps

The blockchain rails are fast, but the distribution of entry and exit points is uneven. In large corridors such as US–Philippines, stablecoin liquidity is strong. But in smaller markets, cash-out options can be scarce or expensive. Without reliable local agents, exchanges, or bank integrations, recipients might have to follow complex steps to turn stablecoins into spendable cash. Foreign exchange liquidity matters: thin order books can lead to poor exchange rates that wipe out some of the cost advantage.

User trust and education

Some people still lump stablecoins in with volatile crypto assets, even with stablecoins’ fiat backing. Recipients might worry about value fluctuations, issuer stability, or the safety of holding funds in a digital wallet. Mismanaging private keys or falling for scams can result in loss with no easy recourse. Adoption tends to be higher among younger and more digitally fluent demographics. Onboarding less tech-savvy users necessitates familiar, bank-like interfaces for complex blockchains.

Competition from other rails

Stablecoins aren’t the only advancement in cross-border payments.

Competitors include:

• Central bank digital currencies (CBDCs), such as eNaira in Nigeria, that provide similar benefits with official backing

• Mobile money networks and instant payment systems that expand cross-border capabilities without touching crypto

• Fintech incumbents that offer cross-border payments in a system users are already familiar with

Compliance and security risks

Open blockchain networks raise concerns about illicit use. Licensed providers must run Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, just like traditional remittance firms. Regulations can require transaction monitoring, reporting, and recordkeeping, which add overhead. Providers that fail to get this right risk fines and reputational damage.

Technical resilience

Public blockchains still face scalability and reliability tests. Network congestion or outages can delay transfers, and fee increases can erode the low-cost advantage. Providers often mitigate this by supporting multiple networks, but that adds complexity.

How are stablecoin remittances regulated?

Stablecoin remittances sit at the intersection of payment and crypto regulations, which means the rules are developing and vary widely across jurisdictions.

Regardless of where the issuer is based, exchanges, wallet providers, and remittance platforms must comply with:

• KYC and AML checks

• Transaction monitoring and suspicious activity reporting

• Licensing in jurisdictions where they operate

This means that a well-run stablecoin remittance app often follows the same compliance requirements as a traditional money transfer service, just with different rails.

Here’s a closer look at region-specific regulatory demands on stablecoin payments.

United States

The US passed a federal framework in 2025. The GENIUS Act requires stablecoin issuers to maintain 1:1 reserves, publish monthly reports on those reserves, and disclose their redemption policies. This legislation won’t take effect until federal regulators issue their guidance, but it could add more transparency and reduce risk for people who use US-issued stablecoins for remittances.

European Union

The EU’s Markets in Crypto-Assets (MiCA) regulation, which went into effect in 2024, set a comprehensive standard:

• Licensing: Stablecoin issuers must be authorized and meet capital, liquidity, and reserve requirements.

• Redemption rights: Users have a legal guarantee to redeem on demand and at par.

• Extra oversight: Stablecoins with large user bases or high market capitalization face tighter supervision and higher capital requirements.

This framework provides clarity for cross-border flows into or out of the EU. If a stablecoin is MiCA compliant, it meets a high bar for safety and transparency.

Asia Pacific

Regulations vary across the region. Singapore, for example, regulates single-currency stablecoins with strict capital requirements and mandates that issuers redeem stablecoins at par within five business days of a request. China banned crypto activity but is considering yuan-backed stablecoins.

Latin America and Africa

Many countries don’t yet have specific stablecoin rules, but broader crypto or payment laws apply. Nigeria established a stablecoin regulatory framework with the 2025 Investment and Securities Act, which brought virtual assets under the oversight of the country’s Securities and Exchange Commission. Brazil’s Virtual Assets Law of 2022 requires providers to receive authorization before they operate and gives oversight powers to the Central Bank of Brazil.

In several markets, stablecoin remittances are growing ahead of formal legal guidance and creating pressure for governments to catch up. Regulations are moving toward legitimizing stablecoins as part of the global payment system, with stronger reserve rules, redemption rights, and consumer protections. The more consistent these frameworks become, the easier it will be to scale stablecoin remittances without legal uncertainty slowing adoption.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world. Businesses can accept stablecoin payments globally that settle as fiat in their Stripe balances.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs and access to 125+ payment methods, including stablecoins and crypto.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payment performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.