Traditional Giants Clash Head-On with Crypto Companies, Stablecoins May Reshape the $900 Billion Cross-Border Remittance Market

Odaily According to industry insiders, as the application of stablecoins in cross-border payments accelerates, a global remittance market worth approximately $900 billion is facing restructuring. Experts point out that stablecoins, leveraging blockchain technology, can significantly reduce the cost and time of cross-border transfers and are poised to challenge the traditional remittance system represented by Western Union.

World Bank data shows that the average fee for cross-border remittances remains above 6%, placing a particularly heavy burden on low-income groups sending money to developing countries. Experts believe that stablecoins enable peer-to-peer transfers directly through digital wallets, with significantly lower fees and friction compared to traditional channels.

On the regulatory front, US President Trump signed the GENIUS Act in July, establishing a federal regulatory framework for stablecoins and pushing them into the mainstream financial spotlight. Since then, traditional payment and remittance institutions, including Western Union and PayPal, have begun deploying stablecoin-related products.

Analysts note that traditional remittance institutions possess global customer networks and mature compliance systems, giving them an advantage in large-scale adoption; however, their existing business models could become obstacles to transformation. In contrast, crypto-native companies and large trading platforms (such as Coinbase, Kraken) have greater flexibility in technology and product iteration but still face challenges related to brand trust and regulatory implementation.

The market widely believes that competition in the remittance sector will evolve into a three-way contest among traditional financial institutions, crypto-native companies, and fintech platforms. As regulatory details are gradually refined, the penetration rate of stablecoins in the global remittance market is expected to continue increasing this year.