"Stablecoins: A Revolution in Global Money Transfers"

The Role of Stablecoins in Global Money Flow

Every day, billion of dollars are moving across blockchains through stablecoins. The market is shaped by USDT ($175 billion market cap) and USDC ($75 billion). However, the increase in new participants is expanding this ecosystem. Stablecoins are becoming one of the largest financial innovations after electronic payments, moving beyond just being a byproduct of cryptocurrencies.

Areas of Use and Growing Potential

The areas of use for stablecoins are broad; however, four key topics stand out: protection in high-inflation economies, cross-border payments and money transfers, decentralized finance (DeFi) and programmable finance, and trade and liquidity. Among these, cross-border payments and money transfers emerge as the area with the largest growth potential.

Stablecoins and SWIFT: Innovation in Cross-Border Money Transfers

Dollar-based stablecoins have begun to replace SWIFT in small and medium-sized transactions. Money now moves around the world in seconds, not days. Nowadays, the intermediary services provided by SWIFT for international dollar transfers are being replaced directly by USD stablecoins.

Speed, Cost, and Adoption: The Situation in 2025

USD stablecoins move instantly in the digital world, while local currencies are still needed in the real economy. This situation requires liquidity providers to bridge two different currency states: digital (USD stablecoins) and fiat (local currencies). This mismatch leads to friction in the markets.

Solution: FX On-Chain with a Single State

FX-on-chain protocols combine the two-state issue into a single digital state. The conversion of stablecoins into local currencies can be achieved instantly without the need for banks. This offers two significant advantages: instant conversion and flow matching. FX-on-chain continuously moves liquidity providers in a cycle without adding risk.

Future Perspective

Stablecoins are no longer just a bridge between cryptocurrency and fiat money. They are becoming the foundation of global trade. From Argentine households seeking protection from inflation to Nigerian exporters paying their bills, stablecoins are finding their place everywhere. The future will be shaped by three main areas: the impact of FX on-chain, regulatory frameworks, and the rise of local currency stablecoins.