How stablecoins can help money move

Stablecoins could help the global payments system take the next step.

“These digital tokens pegged to stable assets like the US dollar can be transferred globally in seconds, without relying on a chain of correspondent banks.”

International payments are the lifeblood of global trade and a vital service for millions of individuals. Whether it's a business importing goods from overseas, a student paying tuition abroad, or a migrant sending money home, the ability to move funds across borders efficiently and affordably is more important than ever.

The numbers speak for themselves. In 2024, international payments reached around $US190 trillion, and they’re expected to grow to $US250 trillion by 2027. That’s about 5 per cent growth each year, driven by rising demand for faster, more affordable international payment services.

Every day billions of dollars move to and from all corners of the world through a vast series of systems and networks that ensure the world has the money it needs to go around. But the world is changing, and so is its payment needs.

At ANZ, we believe stablecoins will be an important part of that change. Offering improved transaction speed and visibility over existing systems, stablecoins could dramatically improve the international payment experience for both individuals and businesses.

All corners

Behind every international payment is an operating model known as correspondent banking. 

Since no single bank has a direct relationship with every other bank globally, they often rely on intermediaries — ‘correspondent banks’ that hold accounts with one another — to move money across borders.

Let’s say a student in Australia is receiving tuition support from their parents in China. The Chinese bank doesn’t have a direct relationship with the Australian bank, so the payment is routed through one or more intermediary banks—each holding accounts with the next. These intermediaries help bridge the gap, but can also introduce additional fees, delays, and uncertainty.

To move money globally, banks have long utilised the global messaging network, SWIFT, to send and receive payment instructions with each other. SWIFT messaging is a resilient and highly effective common language for banks to communicate, but limited to financial institutions sending and receiving messages between each other. It doesn’t actually move the money.

This means the instruction to pay and the movement of funds happen separately, often requiring a complex network of accounts and correspondent banks to enable a payment to be processed. This disconnect can slow payments down and lead to a lack of visibility for both sender and recipient.

The increasing expectations of customers combined with the innovation and disruption of non-bank providers mean that the G20 commitments pledged by major banks globally to deliver by 2027 play a critical role in driving us to achieve a common goal: faster, simpler, cheaper international payments.

Alternative

This is where stablecoins may provide the answer. These digital tokens pegged to stable assets like the US dollar can be transferred globally in seconds, without relying on a chain of correspondent banks.

Instead of routing through multiple intermediaries, a stablecoin transaction moves directly from sender to recipient via blockchain. It’s instant, transparent, and low-cost.

For businesses, stablecoins offer similar advantages: faster settlement, reduced costs, and better cash flow management. And because they’re programmable, they can integrate with smart contracts to automate invoicing, compliance, and reconciliation.

However, to truly scale and serve as a viable alternative to traditional systems, interoperability is essential. Today’s stablecoin ecosystem is fragmented across different blockchains and platforms, making it difficult for users and businesses to move assets freely between networks.

Seamless interoperability — between wallets, blockchains, and financial institutions — is critical to ensure stablecoins can function as a universal medium for international payments.

Equally important is mainstream acceptance. For stablecoins to become a trusted part of the global financial system, they must be embraced not just by native crypto users, but by banks, regulators, merchants, and consumers.

This means building robust regulatory frameworks, ensuring transparency in reserves, and creating user-friendly experiences that rival traditional banking.

The road ahead

Of course, stablecoins aren’t a silver bullet. We still need better regulatory clarity, more trusted on/off ramps to convert digital assets into local currency, and greater interoperability between platforms. But the potential is clear.

As global demand for international payments continues to rise, the need for faster, cheaper, and more transparent solutions will only grow. Stablecoins offer a glimpse into a future where sending money across borders is as easy as sending an email — and that future is closer than we think.

Carl Garrett is Head Global Cross-Border Product & Cindy He is Associate Director, Global CBP at ANZ