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Case Study
August 28, 2025

Using Stablecoins for Cross-Border Payments

Background

Traditional cross-border payments are slow and expensive. For example, sending $500 from the U.S. to Mexico through a bank wire can take 2–5 business days and incur fees of $20–50, plus unfavorable currency conversion rates.

Enter stablecoins — cryptocurrencies pegged to stable assets like the U.S. Dollar (e.g., USDC, USDT, DAI). They provide the benefits of blockchain (speed, transparency, global access) without the price volatility of Bitcoin or Ethereum.

Scenario

  • Company: Fintech startup PayGlobal

  • Problem: Sending employee salaries from the U.S. to contractors in Mexico

  • Solution: Use USD Coin (USDC) for payments

Process

  1. Funding:
    PayGlobal converts $10,000 USD into 10,000 USDC using Coinbase.

  2. Transfer:

    • The USDC is sent via the Ethereum or Polygon blockchain to Mexican contractors’ digital wallets.

    • Transaction time: ~30 seconds

    • Network fee: under $1 on Polygon

  3. Redemption:

    • Contractors use local exchanges (e.g., Bitso in Mexico) to convert USDC into Mexican pesos (MXN).

    • Funds are withdrawn instantly to their bank accounts or used directly as USDC.

Results

  • Speed: Transfers reduced from 3 business days → under 1 minute

  • Cost Savings: From $40 per transaction → less than $1

  • Transparency: Blockchain provides real-time tracking of payments

  • Stability: Unlike volatile crypto, 1 USDC ≈ $1, protecting against value swings

Key Takeaways

  • Stablecoins bridge the gap between traditional finance and crypto.

  • They enable low-cost, instant international transactions.

  • Businesses can use stablecoins as a hedge against currency volatility in emerging markets.

  • Regulatory clarity is still evolving, but adoption is growing among fintechs, banks, and payment providers.

✅ Conclusion:

This case study highlights how stablecoins like USDC can revolutionize cross-border payments by combining blockchain efficiency with the stability of fiat currency.

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Saalt is an acronym for Simple AI application lending tools. (SAALT).   The application helps brokers, lenders, and SMBs streamline their efforts in achieving their desired lending request from banks and non-bank debt options.