Stablecoins Could Cut Cross-Border Payment Costs by 99%, Says KPMG
Stablecoins are emerging as a major tool for institutions to reduce costs, accelerate settlement times, and unlock liquidity in the $150 trillion global payments market, according to a KPMG report.
Traditional cross-border payments rely on a correspondent banking system that typically takes two to five days to settle, involves multiple intermediaries, and costs $25–$35 per transaction. Banks must also maintain large balances in nostro and vostro accounts, tying up capital and creating inefficiencies that stablecoins are increasingly able to address.
Faster, Cheaper, More Transparent
Blockchain-based stablecoin solutions, including Tether’s USDT and Circle’s USDC, can cut settlement times from days to minutes or even seconds, depending on the network. Transaction costs can drop by over 99%, while lower prefunding requirements free up capital and improve overall liquidity. These networks also provide real-time tracking and auditability, offering transparency that aligns with modern regulatory expectations.
Growing Institutional Adoption
Some financial institutions are already leveraging stablecoins for real value transfers. JPMorgan processes around $2 billion in daily transactions on its blockchain platform, while PayPal’s stablecoin, launched in 2023, has reached a $1.17 billion market cap.
KPMG says these developments highlight strong demand for stablecoin-powered cross-border payments and demonstrate how digital assets are reshaping global financial infrastructure in practical, revenue-generating ways.
