Imagine a world where international businesses and individuals can move money across borders as easily as sending an email. Stablecoins are making that possible. Whether you’re paying a developer in Japan or receiving funds from a client in Portugal, stablecoins are creating a fast, affordable and inclusive global payments experience. This all sounds great. But what is a stablecoin? How does it differ from other crypto currencies? Is it as secure as legacy payments? It’s okay to have lingering questions about the payment form that’s kickstarting the U.S. government’s involvement in cryptocurrency (cue the GENIUS Act).
The current geopolitical landscape and the volatility of macroeconomics has created a demand in cryptocurrency for businesses. Through the adoption of stablecoin as a legitimate payment source, more and more companies are jumping on board with adding stablecoin as an option. It’s important to note that stablecoin isn’t replacing legacy payment methods, but it is offering more flexibility for global payments.
What is a stablecoin?
Stablecoins are digital currencies designed to maintain a stable value typically pegged 1:1 to a fiat currency like the U.S. dollar. Get it? Stable. Coin. Not a super groundbreaking name, albeit. But what is rather impressive is stablecoin’s ability to provide certainty, unlike other cryptocurrencies. That makes them ideal for payments, payroll, remittances, and other everyday financial transactions. There are a few types of stablecoins available, but the most widely used are fiat-backed (meaning they are backed by reserves of actual dollars held in a bank) and regularly audited for transparency and trust.
Why use stablecoin for cross-border payments?
Well for one, traditional cross-border payment methods are slow. But it makes sense because you’re dealing with intermediaries, ledgers, bank time constraints and more. Stablecoin essentially cuts out the middle man, so international payments can be made faster and at scale. For businesses, this means being able to reduce overhead and serve global markets more effectively.
Key benefits of stablecoin:
- Speed: Traditional bank transfers can take 3–5 days. Stablecoin payments settle in minutes—even seconds.
- Cost: Wires and SWIFT payments come with high fees. Stablecoins drastically reduce or eliminate transaction costs.
- Transparency: Transactions are logged on the blockchain for real-time traceability and accountability.
- Availability: Unlike banks, stablecoin payments work 24/7/365—even on weekends and holidays.
Use cases: Breaking borders in action
Cryptocurrency is no longer an intangible concept only for millennials who want to get rich quick. Stablecoin combines the reliability of traditional currencies with the efficiency of blockchain technology, making it a secure way for businesses to move money. Here are some practical scenarios of how it is being used across the world right now:
- Freelancers and contractors:
Stablecoin allows self-employed people to broaden their client-base with ease. For example, a graphic designer in Nigeria can now receive euro payments directly from a client in Europe, instantly. - Vendors and suppliers:
E-commerce businesses can pay overseas manufacturers in stablecoins and within the same day the money can be accessed. Ultimately saying goodbye to delays and wire fees that hurt cash flow. - Remote teams and payroll:
Startups with international teams can pay salaries in stablecoins, offering more reliable and secure compensation (thanks to blockchain technology). - Aid and humanitarian work:
Since access and availability are non-issues, NGOs are turning to stablecoins to deliver aid in regions where traditional financial systems are fragile or inaccessible.
Using Routable to send stablecoin payments
Routable’s commitment to payment flexibility and a seamless vendor experience holds true as the company recently announced a partnership with Brale.
“Customers expect payments to be fast, low-cost, trackable, and reliable. When it comes to international payments, the complexity grows multifold. This collaboration will upend the traditional model to make money move instantly and seamlessly across the globe."
Why Routable
- Simplified payout experience: Whether using a traditional payment method or stablecoin, Routable offers a user-friendly vendor experience.
- Vendor flexibility: Vendors can choose how to receive payments: USD, local currency, or stablecoin.
- API-first Architecture: The Routable platform can easily integrate stablecoin settlement into existing workflows.
- ERP reconciliation: Routable’s robust 2-way sync applies to stablecoin payouts so reconciliation and monthly-close doesn’t require any additional work.
Ready to learn more about how Routable can help you distribute international payments with ease? Let’s talk.
