Crossing Borders, Crossing Chains: Why Distribution Will Decide Who Wins Stablecoin Remittances

by Chris Robins, Head of Growth and Strategic Partnerships, Axelar (Interop Labs)

Stablecoin issuers have quietly become significant actors within the global financial system. As of early 2025, some issuers are among the top 20 direct holders of US Treasuries worldwide, surpassing holdings from foreign central banks, including Germany and Mexico (Outlier Ventures, 2025).

At the same time, the global remittances market continues to grow as an important financial lifeline for families around the world. In 2024, remittances to low- and middle-income countries were projected to exceed $685 billion. Yet, the World Bank reports that the average fee for sending these payments stood at 6.62%, leading to more than $41 billion annually charged to families who can least afford it (World Bank Remittance Prices Worldwide, September 2024). These costs reflect the inefficiencies of correspondent banking networks, limited access to financial services, and the pricing power of money transmitters in a system where competition has been stagnant for many years.

Stablecoins present a compelling opportunity to lower costs and improve customer experiences by allowing remittance payments to be settled in seconds, transparently, and at a fraction of the cost of traditional remittances services. Broad-based access through nearly any mobile phone with an internet connection also allows stablecoin users to bypass the need for traditional brick-and-mortar banking infrastructure, allowing stablecoins to rapidly reshape the flows of money worldwide.

Stablecoins are reshaping global remittances, with regulatory forces driving institutional entry and creating opportunities in onchain financial services. Distribution is emerging as a decisive factor for issuers, institutions and individuals seeking faster, cheaper and more integrated cross-border payments.

Institutional Issuance Will Increase Competition and Fragmentation

As regulations around stablecoins mature, issuance is poised to grow beyond today’s dominant players. Legislative and regulatory frameworks such as the GENIUS Act in the United States and MiCA in the European Union are defining rules for reserve management, disclosure and consumer protections, providing clarity and predictability that will allow financial institutions and other enterprises to capture their share of the stablecoin market.

Issuers generate revenue from stablecoins by holding interest-bearing cash-equivalent assets like US Treasuries as reserve assets, creating a new source of revenue for banks, fintechs and large global enterprises. Stablecoins also allow issuers to strengthen customer relationships, offering discounts or loyalty rewards for payments made with proprietary stablecoins. Over the next several years, we can expect dozens of institutions worldwide to launch their own stablecoins.

For the remittances category, this shift may diversify the options for stablecoins used to make cross-border payments. Instead of converting fiat USD to one of the existing stablecoins available today, users may soon have access to stablecoins issued by their US-based bank, or their favorite large online retailer. Foreign workers in countries outside the US may soon have access to stablecoin remittance payments denominated in EUR, GBP or JPY, issued by a range of trusted entities. This diversity should increase consumer choice and make global remittance payments more competitive, resilient, and accessible. But such a system may also create a fragmented experience where payment recipients need to use a specific blockchain, wallet or set of applications, or convert to different stablecoins that are compatible with regional services and financial infrastructure.

Stablecoin Adoption and the Rise of Onchain Finance

As stablecoin adoption expands and more merchants, digital platforms and service providers accept stablecoins directly, “offramping” into local fiat currencies will gradually become less important.

At the same time, the growth of onchain financial services; ranging from lending and savings products to insurance and investment markets creates new incentives for individuals to hold stablecoins within their own digital wallets. For many remittance recipients, these onchain financial services may represent their first access to credit or secure investment opportunities. What begins as a financial lifeline for daily essentials could evolve into a gateway to broader financial growth and security.

For issuing institutions to maintain their share of the stablecoin market (and associated revenue generated from reserves), broad distribution will need to be a priority. Stablecoins that give users direct access to retail and investment opportunities across blockchains, without the friction of swapping into locally accepted alternatives, will naturally win broader adoption. For issuers, this means that a stablecoin’s competitiveness will hinge not just on trust and reserves, but on its ability to “travel” across ecosystems. Without broad distribution, users will swap into more widely accepted alternatives, decreasing supply and reducing reserve revenues for issuers.

Distribution Will Be The Kingmaker

The trajectory of stablecoin remittances points to a future where cross-border payments are faster, cheaper and more inclusive. But the ultimate winners in this market will not simply be those who offer low transaction costs. They will be the issuers whose stablecoins move seamlessly across jurisdictional borders and financial services categories, providing the best user experience with the fewest barriers to accessing local markets and new financial opportunities.

In the coming years, distribution will be a decisive factor that separates stablecoins with staying power from those that fade into irrelevance. For issuers, the question will not be whether to launch a stablecoin, but whether their coin can reach users everywhere they want to transact.

Axelar has already built the infrastructure to make this possible—offering cross-chain compatibility that ensures stablecoins can circulate compliantly across a full range of the most popular blockchain ecosystems. For remittances, this capability is especially crucial, since payments often span multiple countries, currencies, and platforms.

If stablecoins are to deliver on their promise of transforming global remittances, distribution must sit at the heart of their design. Those who embrace this reality will help redefine how value moves across borders, creating a more efficient and inclusive financial future.