On January 17, news reported that with the acceleration of stablecoin applications in cross-border payments, a global remittance market worth about $900 billion is facing restructuring. Industry insiders point out that stablecoins, leveraging blockchain technology, can significantly reduce the cost and time of cross-border transfers, and are expected to impact the traditional remittance system represented by Western Union.

According to World Bank data, the current average fee for cross-border remittances is still above 6%, which is particularly burdensome for low-income groups sending money to developing countries. Experts believe that stablecoins can achieve peer-to-peer transfers through digital wallets, with costs and friction significantly lower than traditional channels.

On the regulatory front, U.S. President Trump signed the GENIUS Act in July to establish a federal regulatory framework for stablecoins, promoting their entry into mainstream finance. Since then, traditional payment and remittance institutions, including Western Union and PayPal, have begun to deploy stablecoin-related products.

Analysts point out that traditional remittance institutions have global customer networks and mature compliance systems, giving them advantages in large-scale adoption; however, their existing business models may become obstacles to transformation. In contrast, crypto-native companies and large trading platforms (such as Coinbase and Kraken) are more flexible in technology and product iteration but still face challenges in brand trust and regulatory implementation.

The market generally believes that competition in the remittance field involving stablecoins will evolve into a three-way game among traditional financial institutions, crypto-native companies, and fintech platforms. As regulatory details are gradually improved, the penetration rate of stablecoins in the global remittance market is expected to continue rising this year.