logo

Traditional Giants Clash With Crypto Companies as Stablecoins Reshape $900 Billion Cross-Border Payments Market

By: theblockbeats.news|2026/01/17 20:30:15
0
Share
copy

BlockBeats News, January 17th: As the application of stablecoins in cross-border payments accelerates, a global remittance market of around $900 billion is facing a reshaping. Industry insiders point out that stablecoins, leveraging blockchain technology, can significantly reduce the cost and time of cross-border transfers, potentially impacting the traditional remittance system represented by Western Union.


World Bank data shows that the current average transaction fee for cross-border remittance is still above 6%, posing a heavy burden on low-income groups remitting to developing countries. Experts believe that stablecoins enable peer-to-peer transfers through digital wallets, with costs and friction significantly lower than traditional channels.


On the regulatory front, U.S. President Trump signed the GENIUS Act in July to establish a federal regulatory framework for stablecoins, pushing them into the mainstream financial landscape. Subsequently, traditional payment and remittance institutions including Western Union and PayPal have started to develop stablecoin-related products.


Analysts point out that traditional remittance institutions have a global customer network and a mature compliance system, 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 Coinbase and Kraken) are more flexible in terms of technology and product iteration, but still face challenges in brand trust and regulatory compliance.


The market generally believes that the competition of stablecoins in the remittance field will evolve into a three-way game among traditional financial institutions, crypto-native companies, and fintech platforms. As regulatory guidelines gradually improve, the penetration rate of stablecoins in the global remittance market is expected to continue to rise this year.

-- Price

--

You may also like

Naval personally takes the stage: The historic collision between ordinary people and venture capital

Naval personally stepped in as the chairman of the USVC Investment Committee. This SEC-registered fund launched by AngelList attempts to bring top private tech assets like OpenAI, Anthropic, and xAI to the general public with a $500 entry threshold. It is not just a new fund, but a structural experi...

a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Stablecoins are evolving from trading tools into universal payment infrastructure, and this process is quieter and more thorough than most people expected.

Refutation of Yang Haipo's "The End of Cryptocurrency"

This may be the true test of cryptocurrency. It's not about whether the price has reached a new high, nor about who will achieve financial freedom in the next bull market, but rather whether, after all the grand narratives have been washed away by cycles, it can still leave behind some simpler, more...

Can a hairdryer earn $34,000? Interpreting the reflexivity paradox of prediction markets

Prediction markets are essentially betting on reality, and when participants can access or even influence this path earlier, the market no longer just reflects reality but begins to shape it in return.

6MV Founder: In 2026, the "landmark turning point" for crypto investment has arrived

"I will deploy funds in 2026, so I will tell you this is the best year in history."

Abraxas Capital Mints $2.89 Billion USDT: Liquidity Boost or Just More Stablecoin Arbitrage?

Abraxas Capital just received $2.89 billion in freshly minted USDT from Tether. Is this a bullish liquidity injection for crypto markets, or is it business as usual for a stablecoin arbitrage giant? We analyze the data and the likely impact on Bitcoin, altcoins, and DeFi.

Contents

Popular coins

Latest Crypto News

Read more