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Stablecoins are propelling cross-border money transfer by being at least 10 times cheaper, 100 times faster while users avoid capital controls, currency conversion hurdles, and heavy compliance bottlenecks

June 10, 2025 //  by Finnovate

While much of the attention on stablecoins focuses on regulation and market cap, their real momentum comes from how they’re being used: Global money transfers: Compared to transferring the same amount via stablecoins, even in the worst case, fees might only be a few dollars, and the transaction typically settles within minutes. That’s at least 10 times cheaper and potentially 100 times faster. There’s also another major benefit: users avoid capital controls, currency conversion hurdles, and heavy compliance bottlenecks, particularly relevant when sending money from or to countries with restrictive financial systems. Means of payment: The second use case — using stablecoins as a means of payment — is less advanced, largely due to regulatory inertia. ccording to U.S. Treasury International Capital data, Tether’s treasury holdings alone rival those of sovereign investors like Germany or Saudi Arabia. Meanwhile, Circle’s portfolio is comparable to that of Thailand or Sweden. With such significant exposure to U.S. debt and growing political opposition to CBDCs—including campaign promises from Donald Trump to block their development—stablecoins may have already secured their place as the preferred digital dollar infrastructure in the United States. Decentralized finance (DeFi). The third major use case—decentralized finance —is where stablecoins are already thriving. They serve as the foundational currency for DeFi applications, enabling lending, borrowing, swapping, yield farming, and more—all without centralized intermediaries. The functionality mirrors traditional finance but with key advantages: it’s global, permissionless, and often more efficient. As crypto infrastructure intersects with artificial intelligence, stablecoins could enable AI agents to transact autonomously, unlocking programmable, real-time finance.

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