Payments Orchestration Using Stablecoins

Pre-funded accounts have been the hidden tax on global payments for 50 years. Stablecoin infrastructure just made them nearly obsolete. Traditional payment companies immobilize billions in emerging markets just to operate. A single payment corridor requires $1-2M in idle capital sitting in pre-funded accounts. Stablecoin infrastructure transforms this model entirely. • In traditional systems, payment companies must maintain accounts with local currency in each country they serve. When you send money to Nigeria, your money stays in the US while a separate, pre-funded account in Nigeria pays out the recipient. • Stablecoin infrastructure works differently: When a company like Due Network processes a payment to Nigeria, they convert the sender's USD to a stablecoin, then partner with local liquidity providers who already hold Naira and are seeking dollars. • These liquidity providers give the recipient Naira in exchange for the stablecoin—completing the transaction without Due needing to maintain their own pre-funded account. This allows: • New payment companies operating in 20+ markets without holding local currency. • Launching a new payment corridor costs nearly zero (vs $250K+) • Settlement times of 30 minutes (vs 3-5 days) This isn't about blockchain for blockchain's sake—it's about capital efficiency. Robert Sargsian summed this up brilliantly on the latest episode of Stablemined: "You need to price currency volatility to clients and immobilize funds that can't be used for anything else." This inefficiency is why Western Union charges 8-10%. The stablecoin sandwich model (USD → stablecoin → local currency) means money moves in real-time without pre-funding. The results? ➡️ Instant market testing without banking relationships ➡️ 90% less upfront capital required ➡️ Fees drop from 8% to under 1% Financial leaders who grasp this liquidity arbitrage will build the next generation of global payment networks. Everyone else will wonder how their industry's economics were completely upended.

This isn’t just another stablecoin initiative. Ant International wants to rewrite the rules by embedding stablecoins into the global financial infrastructure instead of just floating them on crypto markets. 𝗪𝗵𝗮𝘁 𝘄𝗮𝘀 𝗮𝗻𝗻𝗼𝘂𝗻𝗰𝗲𝗱? At Reuters NEXT APAC 2025, Ant International said it’s exploring stablecoin licenses - but not to list tokens on exchanges. Ant is introducing a new paradigm that treats stablecoins as programmable infrastructure for payments and treasury, meaning that they can execute logic: trigger payments, convert currencies, or enforce rules automatically. Examples: - Instant FX: Stablecoins can convert currencies during transactions, cutting out intermediaries and reducing costs. - Conditional payments: Smart contracts release funds only when terms are met (e.g. on delivery). - Real-time liquidity: Stablecoin balances can move instantly across markets to optimize capital. - Embedded compliance: KYC and transaction rules are coded into the token - reducing manual steps and risk. 𝗛𝗼𝘄 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗰𝗵𝗮𝗻𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗴𝗮𝗺𝗲? Most stablecoins today are crypto-native: - Built for trading and DeFi - Monetized through interest on reserves - Often operate in lightly regulated environments Ant’s approach flips that: - Built for regulated global commerce - Focused on payments, liquidity, and treasury - Monetized through real transaction flows, not passive float - Integrated into enterprise-scale financial infrastructure   𝗪𝗵𝘆 𝗱𝗼𝗲𝘀 𝗶𝘁 𝗺𝗮𝗸𝗲 𝘀𝗲𝗻𝘀𝗲? - Ant processes over $1 trillion in global payments annually, with a third already moving on blockchain via tokenized bank deposits. - It’s taking a licensing-first approach, working with regulators to align with financial frameworks. - Through existing payment corridors, Ant connects with hundreds of banks, wallets, and providers across Asia and beyond - enabling immediate reach for stablecoin services. - Ant owns the payment stack, so it can embed stablecoins natively into how money moves - not just layer them on top. - Ant sees stablecoins as infrastructure for automating how money moves globally - cutting out batch processes, unlocking 24/7 liquidity, and reducing reliance on legacy rails. 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗶𝗺𝗽𝗮𝗰𝘁: - From passive store-of-value instruments to active tools for automating payments, FX, and liquidity - From interest-based models to revenue from real transaction activity - From isolated pilots to full integration in enterprise infrastructure Ant’s model is a blueprint for how large fintechs can enter the space - not by replicating crypto strategies, but by integrating stablecoins into high-scale financial operations. Opinions: my own 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐛𝐞 𝐭𝐨 𝐦𝐲 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫: https://lnkd.in/dkqhnxdg

The architecture of cross-border payments is shifting — and it’s no longer just about speed. It’s about programmability, transparency, and compliance by design. Circle newly launched Payments Network (CPN) is not a minor enhancement to legacy systems — it’s a fundamentally different model. One where regulated stablecoins (USDC, EURC) act as digital cash, settlement is near-instant, and participants are governed by enforceable standards. How does CPN stand apart? • Value transfer, not just message exchange • Settlement finality in seconds, not days • No reliance on correspondent banking chains • Full transparency with on-chain audit trails • Compliance-embedded — KYC, AML, cybersecurity built into the network design It’s a network where every transaction is verifiable, programmable, and borderless — opening new possibilities for real-time treasury, trade, and payments innovation. As someone deeply engaged with ISO 20022, structured data, and the future of regulated payments infrastructure — this evolution is both timely and necessary. The question isn’t whether these networks will coexist. It’s whether traditional rails will keep pace with programmable money. Biju Nicolas Pinto Sam Boboev #payments #financialservices #swift #stablecoins #cbdc #treasury #iso20022 #blockchain

Not All Rails or Stablecoins are Equal The “average of averages” is often misleading, especially in cross-border payments. Stablecoins are typically fast (assuming no fiat on-/off-ramp dependencies), but not always cost-effective, with highly volatile pricing. Data from Token Terminal shows Ethereum’s average daily transaction fee over three years was $0.134, with peaks up to $29.58. The median was $0.0074, peaking at $13.093. The variability is significant. Layer-2 stablecoins offer a different profile, with lower fees despite being built on layer-1s like Ethereum. Over the same period, Arbitrum One recorded an average fee of $0.0127, peaking at $0.7033, with a median of $0.0034 and peak of $0.51072. The data shows Ethereum’s dominance is driven less by performance and more by liquidity and distribution. Importantly, these figures reflect only on-chain “gas” fees—composed of base and priority fees. In reality, costs extend across the full value chain: on-/off-ramp fees (including AML/KYC and FX), liquidity provider fees, and PSP or MTO charges tied to transaction size. Additional fees may apply on payout. Users can reduce costs by transacting directly via wallets. Layer-2s introduce added complexity, combining layer-1 gas fees with sequencer fees. However, batching transactions keeps overall costs lower. The result: blockchain payments can be cheaper than legacy rails, but pricing remains inconsistent. This highlights the importance of orchestration layers. By abstracting complexity, they route transactions across stablecoin and fiat rails to optimize for cost and speed. Stablecoins may be preferred for speed or exotic corridors. Traditional rails (e.g., Wise, Airwallex) may be more efficient for liquid currency pairs. Increasingly, legacy players are integrating stablecoins into their own orchestration strategies. Stablecoins will materially impact cross-border payments—but not as a one-size-fits-all solution.

Do stablecoins actually offer MORE than traditional payment rails? Our collective challenge: understanding where stablecoins create genuine incremental value versus existing solutions. Recent BCG research reveals critical market dynamics reshaping digital payment infrastructure after analyzing $27.6 trillion in stablecoin transfers in 2024-- The answer is indeed nuanced. Critical Performance Metrics Identified: ↳Transaction Speed Optimization -Domestic RTPs (Pix, UPI) processed $6.8T globally in 2024 -Cross-border corridors still face settlement delays outside top-10 markets -Stablecoin off-ramping remains infrastructure-dependent ↳Cost Structure Analysis -Ethereum gas fees: $0.02-$3.33 volatility vs FedNow's stable $0.05 -International wire transfers absorb up to 13.65% of principal value - End-to-end stablecoin costs include 0.1-7% off-ramping charges ↳Infrastructure Integration Challenges -Blockchain transparency benefits offset by metadata limitations -Network effects replication requires sustained industry collaboration ↳Programmability Innovation Potential -Smart contract automation enables unprecedented workflow efficiency -Traditional banking automation advancing through open banking initiatives -Regulatory clarity essential for mainstream enterprise adoption The incremental value is REAL but specific: ↳ 24/7 Settlement - While instant payments exist domestically, stablecoins settle globally regardless of time zones or banking hours ↳Cross-border Efficiency - Traditional international transfers still take 1-2 days with high fees. Stablecoins offer faster, more cost-effective alternatives. ↳ Programmability - Smart contract automation enables conditional payments impossible with traditional rails ↳Reality check from 20+ years in payments: The value isn't universal. For domestic payments, RTPs already deliver speed. Cross-border treasury operations and programmable money present significant opportunities for emerging use cases. For payment leaders: Focus on where stablecoins complement, not replace, existing infrastructure. The question isn't "better than" - it's "better for what?" What's your take on stablecoin value proposition? Where do you see the real differentiators? 👍 LIKE this post, 🔄 REPOST this to your network and follow me, Monica Jasuja

Over the past decade, I've talked a lot about how B2B payments have lagged behind consumer innovation. Cross-border transactions still take days, fees remain stubbornly high, and transparency is limited. Crypto is having a tough quarter - yes - but stablecoins continue to emerge as a transformative force—bridging the gap between traditional finance and digital assets. Here’s why this matters: • Global Settlement at Scale: Stablecoins enable near-instant, 24/7 settlement across borders, reducing reliance on intermediaries and cutting costs dramatically. • Efficiency & Transparency: Businesses gain real-time visibility into transactions, improving cash flow management and reducing reconciliation headaches. • Stability Without Volatility: Unlike other cryptocurrencies, stablecoins are pegged to fiat or commodities, making them practical for enterprise use. • Adoption Momentum: As of early 2025, 27M+ active users are leveraging stablecoins for payments, signaling traction. • Risks & Regulation: While the promise is clear, stablecoins also raise questions around currency substitution, capital flows, and regulatory oversight. The future of B2B payments will not be about replacing banks or card networks but about integrating stablecoins into existing infrastructures to unlock speed, cost savings, and resilience. A new kind of "embedded finance". Forward-looking companies are already experimenting with tokenized cash and blockchain rails to future-proof their treasury and payments strategies. For fintech leaders, CFOs, and treasury teams, the call to action is clear: • Start piloting stablecoin-based settlement in controlled environments. • Engage with regulators to shape responsible frameworks. • Explore partnerships that combine traditional trust with digital innovation. Stablecoins will become essential infrastructure for modern B2B commerce. The winners will be those who embrace this shift early, balancing innovation with compliance.

People often talk about how stablecoins are great for cross-border payments, but to understand why, you need to understand how international payments work today. Let’s start with the basics. Customers are more likely to convert if: 1️⃣ Prices are shown in local currency 2️⃣ Customers can pay with their preferred payment method (often a local method) This is logical and glaringly obvious, but implementing this is non-trivial and comes with trade-offs. Pricing in local currency means... ➡️ You take on FX risk, and can lose big… 🇪🇺 Pricing something at €8 might be $10 today, but only $9.50 next month. 🇿🇦 In markets with fluctuating currency rates (e.g., South Africa), this risk increases — R$175 might be $10 today, but only $7 tomorrow. You can try to mitigate risk by converting quickly, but that often means higher fees and longer settlement times. Accepting local payment methods means… ➡️ Needing to set up local accounts, which can be costly and time-consuming. ➡️ Changing your business model, as not all billing types are supported by every payment method. If you’re using a processor like Stripe for Pix, they only support accepting one-time payments, not subscriptions. To spell this out, if you want to sell into Brazil with the most widely used payment method, you can’t do subscriptions with autopay. Businesses run into real costs when trying to price in the local currency and accept local payment methods. The excitement around stablecoins is that they can address and often eliminate these costs. 💵 PRICING Consumers prefer local currency because it’s the denomination of their wealth. With US-backed stablecoins commanding over 99% of market share, most consumers paying with stables are comfortable with US-denominated pricing. Merchants are able to price in dollars while the customer is able to pay in their “local currency." ➡️ For US merchants, FX risk is removed. ➡️ For non-US merchants, FX risk shifts to dollars, a much lower risk since dollars are highly liquid and can be more cheaply and easily converted to local currency. Companies like Loop Crypto help merchants settle in their local currency cheaply and quickly, with settlement times typically T+0 or T+1. 💸 PAYMENT METHOD At Loop, we’re seeing 1 in 5 customers pick stablecoins even when fiat is offered - a staggering number for a relatively new payment method. And this is happening in countries that even have many local payment method options. We’re seeing the most transactions from countries like Germany, the Netherlands, Hong Kong, Canada, and Japan. This is a strong indication that stablecoins are becoming a preferred payment method. Loop makes it fast and easy to add stablecoins alongside other payment methods. For merchants looking to accept global payments for the first time or those looking to save on cross-border payments, it’s a no-brainer to add stablecoins. It's a win-win for merchants and customers.

🔴 A small business pays a supplier abroad. The transfer leaves instantly. But liquidity remains pre-funded in multiple accounts, compliance checks delay final settlement, and no one is fully sure when funds will arrive. (Sounds familiar?) So they start testing stablecoins and it is not because they’re cheaper, but because they’re predictable. OpenFX's report on stablecoins and cross-border payments highlights this tension clearly: explosive growth in usage, but limited penetration in real-world flows . 1️⃣ Scale is real but so is the 1% ceiling Stablecoins processed $27.6T in volume, more than Visa and Mastercard combined. Yet they still represent only 1% of global payment flows . This is the key paradox. The technology has scaled. The system around it hasn’t, YET. The constraint is no longer settlement. The constrain is integration and interoperability. 2️⃣ Where is the bottleneck? It is the infrastructure Stablecoins already solve for instant settlement. But cross-border payments require more 👇 – On/off-ramps – Compliance layers – Treasury integration – Multi-currency liquidity 86% of firms say they are “ready,” yet adoption is rated 0.5/10 . Institutions are not waiting for better tech. They are waiting for operational certainty. 3️⃣ The real opportunity is not where most volume is 90% of high-value B2B payments already settle within an hour in traditional systems . The friction, and the margin, are in the remaining segments: – SME payments – Remittances – “Exotic” currency corridors This is where stablecoins are gaining ground. Not by replacing the system, but by filling its gaps. 4️⃣ Adoption is converging with institutions, not against them 90% of financial institutions are actively exploring stablecoins . Visa, banks, and payment networks are integrating them into existing rails not competing with them. The model emerging is hybrid: stablecoins as settlement infrastructure, traditional finance as the interface. ❓ If stablecoins remain at 1% of flows despite their scale, what actually needs to change for that number to move?

I'm getting more excited about stablecoins the more I learn about them. Not because of crypto hype, but because of the real business applications I keep seeing. Last week's Supra session with three industry leaders opened my eyes to just how fast this space is moving: ↳ Ben Reid (Head of Stablecoins, Bitso) ↳ Avinash Chidambaram (Founder & CEO, Cybrid) ↳ Alex McDougall(President, Stablecorp Inc.) Here's what's got my attention: 1/ The cost arbitrage is massive Traditional cross-border payments cost 4-5% and take days. Stablecoins do the same thing for ~10 basis points in real-time. That's not incremental improvement - that's 90% cost reduction with instant settlement. Alex shared an example: Brazilian students paying Canadian tuition through stablecoin rails instead of international wire transfers. 2/ Real-world infrastructure is already here This isn't theoretical anymore. Bitso processes cross-border payments across Latin America using peso stablecoins. Cybrid provides APIs that let any fintech embed stablecoin payments. Major wireless carriers are exploring real-time settlements for roaming charges - eliminating billions in reconciliation overhead. 3/ AI agents + instant payments = new business models The most fascinating use case: AI agents making authorized payments based on business logic. Your ERP detects low inventory → AI gets CFO approval → payment executes → supplier ships immediately. No more "we'll start manufacturing once your wire clears in 3-5 days." 4/ Regulatory clarity is accelerating adoption The GENIUS Act and similar frameworks are giving enterprises confidence to integrate this technology. Banks are now asking stablecoin companies to help them issue deposit tokens. JP Morgan has their own consortium working on this. 5/ Global harmonization advantage Unlike traditional rails that require different systems in each country, stablecoins work identically everywhere. Build your payment infrastructure once, deploy it globally. This is why every fintech is becoming a crypto fintech - whether they realize it or not. The tipping point feels closer than I expected. What stablecoin applications are you most excited about?

Stablecoin strategy is no longer optional - But it is getting messy! Especially for PSPs, fintechs, CFOs and treasurers. 2026 is shaping up to be the year of stablecoin volume. In 2025 alone, 20 stablecoin payments infrastructure companies raised roughly $1.5B. Gusto is bringing stablecoin payouts to 400,000+ SMBs. Western Union is exploring stablecoin cashout across 500,000 agent locations in 200 countries. Stablecoin networks processed roughly $35T in transaction volume, with about $390B linked to end-user payment flows. The signal is clear: stablecoins are moving from crypto infrastructure to payment and treasury infrastructure. But the operating reality is complex. For PSPs and fintech product teams, a stablecoin strategy now means dealing with: • Multiple acceptance providers • Multiple wallets and custodians • Multiple banks and liquidity partners • Multiple stablecoins and blockchains • Multiple fiat on/off ramps • Multiple payout corridors • Compliance, reconciliation, reporting and exception handling Building this provider by provider, wallet by wallet and corridor by corridor creates years of integration work and operational debt. For CFOs and treasurers, the challenge is different but just as important. Stablecoins can improve settlement speed, reduce trapped liquidity, enable 24/7 movement of funds and support cross-border treasury flows. But they also introduce new questions: • Which issuers and chains are approved? • How do we manage counterparty, custody and bridge risk? • How do we reconcile on-chain movements with ERP and treasury systems? • How do we maintain auditability and policy control? • Where can working capital be optimized, where treasury policy permits? The missing piece here is orchestration.   Stablecoins are not just another payment method. They are becoming a fragmented operating layer across banks, wallets, providers, chains, liquidity sources and corridors. At Heron, we are building the neutral orchestration layer for that complexity. One API and control plane to help PSPs, fintechs and enterprises route across providers, wallets, stablecoins, chains, banks and payout corridors, with compliance, reporting and reconciliation built in. The goal is not to replace the existing payment or treasury stack. The goal is to make stablecoin strategy executable, scalable and provider-neutral. For PSPs and fintech leaders: what is the biggest blocker to launching stablecoin acceptance or payouts today? For CFOs and treasurers: what is the biggest blocker to using stablecoins for cross-border treasury and working capital flows? Bank connectivity? ERP integration? Compliance? Reconciliation? Risk controls? Curious to hear what teams are seeing in the market. Learn more about Heron: https://tryheron.com/ #Stablecoins #Fintech #Payments #Treasury #CFO #Product