A Bank for International Settlements working paper published Oct. 19 says stablecoins may move cross-border value quickly, but conversion and bank processing can add costs and delays for businesses seeking local currency.
For a recipient who needs local currency, the last stage depends on whether a provider can convert the token and pay out in that market. Others may be able to hold or use the stablecoin directly. A business could acquire a dollar-pegged token and transfer it through a blockchain; the BIS paper says trading depth, exchange rates and withdrawal charges all shape the final expense. Limited local-currency liquidity can be another constraint. Local-currency recipients may absorb conversion charges and face an added bank-processing wait. The paper presents this as a possible route; cost or timing gains in markets with limited banking links are unverified.
The Financial Stability Board (FSB) measured average cross-border business-payment costs for micro, small and midsize enterprises at 1.6% in 2025, compared with 1.5% in 2023. Foreign exchange made up 87.1% of the measured 2025 cost, according to figures as of March.
An earlier BIS study found 20% fewer active correspondent banking relationships between 2011 and 2018. It linked some of that retreat to banks reassessing costs and risks, a factor that helps explain interest in other payment routes.
Survey evidence on settlement speed comes from a narrower group. Payoneer and Ascend2 surveyed 265 U.S. payments, treasury and finance leaders at companies with annual revenue of at least $100 million. The companies had used, tested or explored stablecoins. Among respondents using stablecoins, 50% reported faster settlement; this was their assessment, not a measured change in payment times. The survey does not measure use among smaller firms with limited access to cross-border banking.
Most targets in the G20 cross-border payments roadmap are due by the end of 2027. The FSB’s 2025 progress report recorded some improvement but said satisfactory improvements at the global level were unlikely by the end of 2027. Its 2026 work programme schedules the next progress report, with updated indicators, for October.
