Traditional giants clash head-on with crypto companies; stablecoins could reshape the $900 billion cross-border remittance market.

As stablecoins are increasingly used in cross-border payments, a global remittance market worth approximately $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, potentially impacting traditional remittance systems like Western Union. World Bank data shows that the average fee for cross-border remittances is still above 6%, placing a particularly heavy burden on low-income groups sending remittances to developing countries. Experts believe that stablecoins can facilitate peer-to-peer transfers through digital wallets, with significantly lower fees and friction compared to traditional channels. On the regulatory front, US President Trump signed the GENIUS Act in July, establishing a federal regulatory framework for stablecoins and pushing them into the mainstream financial sphere. Since then, traditional payment and remittance institutions, including Western Union and PayPal, have begun developing stablecoin-related products. Analysts point out that traditional remittance institutions possess global customer networks and mature compliance systems, giving them an advantage in large-scale adoption; however, their existing business models may hinder their transformation. In contrast, crypto-native companies and large trading platforms (such as Coinbase and Kraken) have greater flexibility in technology and product iteration, but still face challenges in brand trust and regulatory implementation. The market generally believes that competition among stablecoins in the remittance sector will evolve into a three-way battle between 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 to increase this year.