Traditional Giants Clash With Crypto Companies as Stablecoins Reshape $900 Billion Cross-Border Payments Market

January 17th: As stablecoins gain traction in cross-border payments, the roughly $900 billion global remittance market is poised for disruption. Industry insiders note that blockchain-powered stablecoins can slash cross-border transfer costs and speed up transactions—potentially upending the traditional remittance system led by Western Union. World Bank data shows current average cross-border remittance fees still exceed 6%, a heavy burden for low-income groups sending money to developing nations. Experts say stablecoins enable peer-to-peer transfers via digital wallets, with costs and friction far lower than traditional channels. On the regulatory front, U.S. President Trump signed the GENIUS Act in July to establish a federal stablecoin framework, paving the way for their entry into mainstream finance. Since then, traditional players like Western Union and PayPal have launched stablecoin-related products. Analysts note traditional remittance firms hold an edge in large-scale adoption thanks to their global customer networks and robust compliance systems—but their existing business models may slow transformation. By contrast, crypto-native companies and exchanges (e.g., Coinbase, Kraken) are more agile in tech and product updates, yet still face hurdles with brand trust and regulatory compliance. The market widely expects stablecoin competition in remittances to evolve into a three-way battle between traditional financial institutions, crypto-native firms, and fintech platforms. As regulatory guidelines take shape, stablecoin penetration in the global remittance market is set to keep rising this year.