Stablecoins Could Offer a Trade Payment Route Where Banking Links Fall Short

Businesses that can bank locally but struggle to settle foreign invoices could use dollar-pegged stablecoins to move value across borders, although local-currency payout remains a practical hurdle. Correspondent banks connect domestic institutions to payment networks abroad. When those relationships are restricted or withdrawn, a company may lose access to international transfers, foreign exchange and trade finance while keeping its domestic account. High compliance costs, low profitability and perceived financial crime risks can contribute to the pullback. The average cost of cross-border payments for small and midsize enterprises was roughly 1.5%.

Source: TokenPost