Stablecoins Are Shaking Up Cross-Border Payments

It’s surprising. I mean, the primary use case for stablecoins is cross-border. So you almost wonder if they’re trying to get into that market before stablecoins get in and maybe disrupt it.

What do you think is driving it?

I think there are a few things. SWIFT is wanting to get into the P2P space, FedNow is wanting to get into cross-border, and so The Clearing House is wanting to get into cross-border.

Is it a response to stablecoins? Yes. I think the answer is yes.

Sure. You have to say yes, too.

Yeah. But then I started thinking, I think it’s also just the expansion of use cases in general.

Sure.

We’re not going to see that slow down. We’re going to see expansion of payment rails relative to use cases, and we’re going to see the expansion of use cases relative to payment rails. It’s just going to continue.

I also think that this is one of the first things that we’re seeing relative to ISO 20022. So it’s here, it’s universal now, and we’re really seeing the adoption and expansion of payments as a result of that.

Yeah. We thought it was going to be rich data. I think what we’re really seeing is faster movement and new payment types.

Interesting. I do think the thing we always have to remember about these networks is it’s all about scale and volume. So they’re all looking for as much volume as possible.

Yep.

Whether that’s cross-border or not doesn’t matter. They need volume, so they’re going to keep looking at that.

Let us know in the comments what you’re doing in the space, and if you have any questions, certainly reach out.