Cross-Border Payment Costs Could Drop 99% With Stablecoins, KPMG Finds

Stablecoins Could Slash Cross-Border Payment Costs by 99%, KPMG Finds

Stablecoins are increasingly being adopted by institutions to cut costs, accelerate settlement, and unlock liquidity in the $150 trillion global payments market, according to a recent KPMG report.

Currently, banks rely on a correspondent banking network that moves roughly $150 trillion annually. This system typically takes two to five days to settle, involves multiple intermediaries, and costs $25–$35 per transaction. Institutions also need to maintain large balances in nostro and vostro accounts, tying up capital and creating inefficiencies—challenges that stablecoin technology is well-positioned to address.

Faster Settlements, Lower Costs

Blockchain-based stablecoins like Tether’s USDT and Circle’s USDC can reduce settlement times from days to minutes or even seconds, depending on the network used. Transaction costs can fall by more than 99%, while lower prefunding requirements free up capital and improve liquidity. The networks also provide real-time tracking and auditability, increasing transparency and aligning with evolving regulatory expectations.

Early Adoption by Major Institutions

Several financial institutions are already using stablecoins for significant value transfers. JPMorgan processes roughly $2 billion in daily transactions on its blockchain platform, while PayPal’s stablecoin, launched in 2023, has grown to a $1.17 billion market capitalization.

KPMG says these developments indicate a strong appetite for stablecoin-powered cross-border payments and show how digital assets are transforming global financial infrastructure in practical, revenue-generating ways.