Stablecoins May Reduce International Payment Expenses by Up to 99%, According to KPMG

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

Institutions are increasingly adopting stablecoin technology to cut costs, speed up settlements, and unlock liquidity in the $150 trillion global payments market, according to a report from KPMG.

Banks currently rely on a correspondent banking network that moves roughly $150 trillion annually, a system that typically takes two to five days to settle, involves multiple intermediaries, and costs $25–$35 per transaction. To maintain liquidity, institutions must lock up large sums in nostro and vostro accounts, creating inefficiencies that stablecoins can help solve.

Faster Settlements, Lower Costs

Stablecoins, such as Tether’s USDT and Circle’s USDC, are pegged to traditional assets like the U.S. dollar or gold. KPMG highlighted that blockchain-based stablecoin solutions can reduce settlement times from days to minutes—or even seconds. Transaction costs can drop dramatically, in some cases by over 99% compared to traditional rails.

Lower prefunding requirements free up capital, improve liquidity, and allow resources to be deployed more efficiently. These networks also provide real-time tracking and auditability, enhancing transparency and compliance with evolving regulations.

Early Institutional Adoption

Major institutions are already using stablecoin infrastructure. JPMorgan processes about $2 billion in daily transactions via its blockchain platform, while PayPal’s stablecoin, launched in 2023, has grown to a $1.17 billion market cap.

KPMG noted that these developments signal strong demand for stablecoin-powered cross-border payments, showing how digital assets are reshaping global financial infrastructure in practical, revenue-generating ways.