The US Faster Payments Council has published a report analysing stablecoins as a cross-border payment method.
The study, entitled 'Stablecoins as a Cross-Border Payment Method', was developed by the FPC Cross-Border Payments Work Group in collaboration with the FPC Digital Assets Work Group, and it examines how stablecoins compliant with the GENIUS Act could be applied to cross-border payment processes, comparing these approaches with traditional correspondent banking models.
Stablecoin models and considerations
The report outlines two primary approaches to stablecoin-based cross-border payments. The first involves direct stablecoin transfers between parties, while the second is an indirect settlement model in which financial institutions or fintechs use stablecoins as a back-end settlement mechanism rather than a consumer-facing instrument. Alongside these models, the report sets out operational, compliance, liquidity, and regulatory factors that organisations need to assess before implementing stablecoin-based payment solutions.
According to the report, potential advantages of stablecoins in this context include faster settlement, reduced dependency on correspondent banking relationships, lower operational complexity, and improved transaction transparency through blockchain-based records. At the same time, the report also addresses ongoing obstacles, including regulatory harmonisation across jurisdictions, compliance obligations, interoperability between systems, and integration with legacy payment infrastructure.
Mark Majeske, SVP of Faster Payments at Alacriti and FPC Cross-Border Payments Work Group Chair, said cross-border payments continue to present challenges related to speed, transparency, liquidity management, and cost, adding that the report offers a practical analysis of how stablecoins may help address these issues while acknowledging the operational and regulatory realities financial institutions face as adoption develops.
Industry collaboration and regulatory context
Bo Berg, Technical Strategist & Innovation at Avenue B Consulting and FPC Digital Assets Work Group Chair, noted that stablecoins are attracting industry interest because they present new ways of moving value globally with greater efficiency, and said the report aims to give financial institutions a balanced view of both the opportunities and the practical considerations involved in stablecoin-enabled cross-border payments.
The report further discusses the evolving role of stablecoins in cross-border payments, an area where speed, transparency, and operational efficiency remain persistent industry priorities. It emphasises the importance of collaboration, standards development, and coordinated compliance frameworks as adoption of stablecoins continues to progress.
In addition, Reed Luhtanen, FPC Executive Director and CEO, mentioned that the organisation is focused on creating opportunities for industry stakeholders to jointly evaluate emerging technologies and their impact on the payments landscape, adding that the report is intended to advance industry understanding of how stablecoins could shape the future of cross-border payments as interest in the technology grows.
