Stablecoin: over $5 trillion in organic transactions in the last 12 months. This is how instant cross-border payments are triggered

Recent data indicates that, in the last 12 months, over $5 trillion in “organic” stablecoin transactions have begun to change the costs, speed, and infrastructure of global payments.

Based on analyses from Google Cloud and on-chain datasets like Artemis, the gross flow – including convertibility and arbitrage – could reach up to $30 trillion.

These estimates are consistent with observations published by international institutions and studies on remittance prices, useful for contextualizing the macro-financial impact BIS – Annual Report 2023 and with the data on remittance costs collected by the World Bank – Remittance Prices Worldwide.

According to data collected by industry analysts and verified on-chain reporting, the portion of “organic” volume is concentrated in specific corridors (Southeast Asia, Latin America, West Africa).

In two European pilot projects followed in 2024, average settlement times dropped below 5 minutes, and total costs were reduced by up to 70% compared to traditional channels; the data and observations are updated to August 2025.

Methodological note: “organic volume” refers to transfers not attributable to arbitrage/bridging cycles between exchange or smart contracts. The estimates concern the last 12 months. It should be noted that comparability between providers may vary.

The scale of the phenomenon: key numbers and trends

• On-chain dollarization: the supply of stablecoin pegged to the dollar represents a significant fraction (about 1%) of the U.S. M2, which is estimated to be around $20-22 trillion according to market estimates and public trackers (e.g., DeFiLlama). An interesting aspect is the resilience of the supply during phases of volatility.
• Adoption: millions of active wallets, with a growth in cross-border flows both in underbanked areas and among digital merchants. The usage is not homogeneous, but the trend appears consolidated. For more details on the definition of stablecoin and use cases, see our internal guide Definition: Stablecoin.
• Efficiency: settlement times reduced from days/hours to minutes/seconds and a significant reduction in fees in specific corridors. In some cases, the leap in quality is primarily operational.

Consequently, stablecoins establish themselves as credible options for remittances, global B2B payments, transactions in the creator economy, and digital treasury management. It must be said that the actual penetration depends on local infrastructure and applied rules.

How stablecoin accelerate cross-border payments

Stablecoins allow direct wallet‑to‑wallet transfers on distributed ledgers, reducing the need for long chains of banking correspondents and cutting steps, time, and costs. This results in a more streamlined model, often more predictable.

1. Tokenization of the reference currency (e.g., USD) supported by segregated reserves and redemption rules.
2. Transfer via public or permissioned blockchains, which ensure speed and technical traceability.
3. Settlement almost instantaneous, with the possibility of programmability (for example in DvP models or conditional payments).
4. Conversion into local currency through regulated on-/off-ramps or agent networks.

Quick use case: remittances

Let’s consider sending 200 € from Europe to Southeast Asia:

• Traditional channels: the global average cost is around 6% and transfer times are 1–3 days, as highlighted by the World Bank – Remittance Prices Worldwide. Additional costs, in some corridors, may apply.
• Stablecoin: on‑chain fees are usually below $0.50 on low congestion networks, with settlements in a few minutes. It should be considered, however, that the exchange to fiat and on‑/off‑ramp operations can add from 0.5% to 2.0% depending on the corridor and local liquidity.

In the most expensive and less served corridors, the impact on the total cost and on the access times to cash can become particularly significant. In practice, the difference is especially noticeable when the alternative is slow or fragmented.

Historical Perspective: from the Era of Private Banknotes to Today’s Tokens

Similarly to the private banknotes of the 18th and 19th centuries, stablecoins combine portability and the promise of convertibility.

If in the past trust was based on the reputation and reserves of the issuers, today the focus shifts to the transparency of reserves, compliance controls, and the resilience of payment infrastructures. In this transition, technology acts as an enabling factor, but trust remains central.

Risks and rules: the point in Europe with MiCA

In the European regulatory framework, the MiCA regulation – currently in the process of implementation – integrates with the technical standards proposed by EBA and ESMA, with the aim of balancing innovation and financial stability.

The regulatory game, it must be said, is still evolving. For an updated timeline of the implementation, consult our internal page Timeline MiCA and the official documents of the mentioned authorities.

What changes with MiCA (in summary)

• Authorization of issuers and definition of governance requirements.
• Segregated reserves and quality and liquidity criteria, with an obligation of 1:1 redemption rights for users of e‑money tokens (EMT).
• Transparency strengthened through periodic reports and audits of reserves.
• Limits and enhanced supervision for tokens considered “significant”.
• Compliance AML/CFT coordinated with the Travel Rule of the FATF.

However, the protection of the client in case of default of the issuers, the prudential treatment for banks that expose stablecoin, and the harmonization with the European instant payment system still need to be defined. These are aspects that will influence adoption.

Infrastructure: from the “universal ledger” to interoperability standards

To overcome fragmentation between protocols, shared architectures and interoperable ledgers are emerging. The Bank for International Settlements has illustrated the concept of a unified ledger, while the private sector proposes solutions like the Google Cloud Universal Ledger – a technical proposal awaiting confirmation. 

Verified features from an enterprise perspective include:

• Unified APIs for multiple currencies and assets, with integration to wallet and existing systems.
• Scalability and programmability for complex use cases such as DvP, escrow, and conditional payments.
• Compliance checks and audit trail to meet regulatory requirements.

Interoperability based on standards, such as ISO 20022, can enable 24/7 multi-currency payments, reducing dependence on high-risk bridges. Looking ahead, it is a key piece for scalability.

Operational advantages: transfers between wallets and cost reduction

• Immediate liquidity and settlement in real time.
• Lower fees, which make micropayments and remittances competitive in numerous corridors.
• Automation of settlements through smart contracts and reduction of reconciliation errors.

In summary, payments are shifting from consolidated and opaque flows towards granular, programmable, and verifiable settlement operations. It is not an immediate transition, but the direction seems clear.

Effects on the banking system: risk of disintermediation and response levers

If reserves are concentrated with stablecoin issuers and circuits outside the banking system, the financial system could experience an erosion of deposits and a weakening of credit capacity. Among the possible countermeasures are:

• Use of segregated accounts at banks or central banks for issuers’ reserves.
• Integration between regulated stablecoins, instant payments, and, in perspective, wCBDC for wholesale settlements.
• Partnership between banks and fintech to offer compliant on-/off-ramp services and on-chain treasury solutions.

The most likely outcome is a coexistence between traditional banking systems and new digital solutions, rather than a total replacement. In some markets, the hybrid model is already visible.

Markets and capital: from electronic trading to atomic settlement

The convergence between tokenized assets and stablecoin allows the realization of PvP/DvP models with atomic settlement, which reduce counterparty risk and free up capital.

Experiments conducted by banks and regulators, as documented in various pilot projects made public by the BIS, indicate narrower spreads and greater market participation thanks to shorter settlement times and less uncertainty. However, there are technical challenges related to scalability.

How to overcome technical fragmentation

• Interoperability through messaging standards and chain abstraction, fundamental for multi‑chain orchestration.
• Native AML controls at the protocol level and screening tools for on‑chain assets.
• Shared governance among banks, issuers, and market infrastructures, to ensure the resilience of the system.

Hot questions for the debate

• Deposits vs. stablecoin: to what extent can the adoption of stablecoin erode the base of bank deposits, especially during stress phases?
• Competition: will regulated EMTs become the standard for international B2B or remain a niche for retail?
• Harmonization: Can MiCA, the Travel Rule, and other global standards truly eliminate the regulatory gap between jurisdictions?

Box – What is missing in the data

• Definition non-uniform of “organic volume” among the various providers.
• Double counting potential in transfers via bridging and intra‑exchange.
• On‑chain vs. off‑chain: numerous settlements occur in closed systems and are not publicly visible.
• Active wallets: the figures may be exaggerated due to automatic scripts and multiple addresses associated with a single user.
• Local liquidity and effective conversion costs in emerging currencies, which can vary significantly from one corridor to another.

Multimedia Tips for the CMS

• Infographic: visual representation of the flow of $5T, with segmentation by blockchain, retail/B2B use, and main cross-border corridors.
• Table: comparison between organic on‑chain and total gross volume, with methodological notes and sources (Google Cloud, Artemis).
• MiCA Timeline: main milestones of the implementation, with links to updated pages of EBA and ESMA.

Conclusion

The stablecoin are revolutionizing cross-border payments, reducing costs in specific corridors and introducing more efficient settlement models.

The future trajectory will depend on three essential factors: clear rules (with MiCA in the implementation phase and evolving global standards), interoperable infrastructures, and transparent measurements of flows.

The coming months will be crucial in defining the balance between innovative drive and financial stability requirements. Ultimately, the credibility of the issuers and regulatory alignment will make the difference. For related insights on our site, see the Stablecoin section and the practical guide to remittance services.