Stablecoins Won't Replace Banks in Cross-Border Payments

According to Bernardo Brites, Co-Founder and CEO of Trace Finance, stablecoins will not replace traditional banks in international payments. In a recent column published by Decrypt, Brites explained that while stablecoins can accelerate cross-border transactions by reducing the need for correspondent banks and Swift messages, they still rely on fiat currency at both ends.

Brites pointed out that enterprise cross-border payments typically involve three components: sending local currency through domestic payment systems, transferring value between institutions over a blockchain using stablecoins, and converting the stablecoins into local currency and depositing them in a bank account. While stablecoins can speed up the middle leg of this process, banks remain essential for providing access to fiat currency, domestic payment networks, and regulated compliance systems.

The disparity between stablecoin activity and the broader payments market reinforces Brites' argument. Cross-border payments reached $208 trillion in 2025, while genuine stablecoin payments were around $390 billion annually by late 2025. However, many of the reported $30 trillion in stablecoin transactions are actually automated trading, exchange transfers, or bot activity rather than commercial payments.

Brites emphasized that as transaction volumes grow, companies may need to establish multiple bank relationships and redundant access to local payment systems to avoid operational risks such as banking access changes. This infrastructure could become a competitive advantage for providers in the expanding stablecoin market.