In today’s hyperconnected global economy, the ability to move money across borders is no longer a luxury — it’s a necessity. Yet, despite decades of financial innovation, cross-border payments remain slow, expensive, and opaque for both individuals and businesses. While digital wallets like Venmo and Zelle have revolutionized domestic transactions, their international counterparts still feel like relics from a bygone era.
Sheraz Shere, General Manager of Payments and Commerce at the Solana Foundation, puts it bluntly: “Traditional cross-border payments still have a lot of issues with transparency and cost.” From a user experience standpoint, he argues, the ideal should mirror the simplicity of sending money via Venmo — find the recipient, choose the currency, and deliver funds instantly. That’s the benchmark. And by that standard, today’s global payment systems score only a “two or three.”
But what if there was a way to leapfrog the outdated infrastructure? Enter blockchain and stablecoins — not as speculative assets, but as foundational tools for modern financial rails.
👉 Discover how next-generation payment systems are redefining global money movement.
The Broken State of International Transfers
Cross-border payments today rely on a labyrinthine network of correspondent banks, intermediaries, and legacy messaging protocols like SWIFT. Each step adds cost, delay, and opacity. A typical international wire can take 2–5 business days to settle, incur fees upwards of $30, and offer little real-time tracking. For small businesses and freelancers receiving overseas payments, unfavorable foreign exchange (FX) rates further erode value.
These inefficiencies aren’t just inconvenient — they’re economically significant. According to the World Bank, global remittances exceeded $860 billion in 2023, yet average transaction costs remain stubbornly high at around 6.3%. That means tens of billions of dollars lost annually to friction.
The core problem? Intermediation. Traditional systems require multiple banks to verify and relay transactions, each taking a cut and introducing latency. This is where blockchain technology offers a radical alternative.
Blockchain and Stablecoins: A New Financial Backbone
Rather than using the broad and often misunderstood term crypto, Shere prefers to frame blockchain-based solutions as part of the broader fintech evolution. “Blockchain solutions and stablecoins have found product-market fit in cross-border payments,” he says.
At the heart of this transformation is disintermediation — removing redundant middlemen from the transaction chain. On public blockchains like Solana, payments travel directly from sender to recipient in near real time, bypassing correspondent banks entirely.
Key advantages include:
- Speed: Transactions settle in seconds, not days.
- Transparency: Every transfer is recorded on an immutable ledger, visible to authorized parties.
- Cost-efficiency: Network fees are fractions of a cent per transaction.
- Predictability: No hidden FX markups or surprise charges.
Stablecoins — digital currencies pegged 1:1 to fiat currencies like the U.S. dollar — amplify these benefits. Issuers like Circle (USDC) and PayPal (PYUSD) operate under regulatory oversight and maintain reserve transparency, addressing early concerns about trust and volatility. When someone sends USDC across borders, they’re effectively sending dollar value without relying on traditional banking rails.
This opens up powerful use cases: gig workers receiving instant payouts, e-commerce platforms settling supplier invoices in real time, or NGOs disbursing aid directly to beneficiaries — all with minimal friction.
👉 See how enterprises are adopting blockchain for faster, cheaper international settlements.
Why Businesses Should Care
For companies expanding globally, the choice isn’t whether to adopt blockchain — it’s whether to keep paying the hidden tax of inefficiency.
Shere emphasizes that decision-makers should evaluate payment solutions based on three pillars: cost, speed, and transparency — not technological buzzwords. By those metrics, blockchain-based systems consistently outperform legacy infrastructure.
Web3 companies are already building bridges between traditional finance (TradFi) and decentralized systems. These hybrid solutions allow businesses to initiate payments in fiat, convert them into stablecoins for rapid cross-border transit, then settle in local currency — all seamlessly.
And concerns about security? They’re being addressed through advanced custody models:
- Self-custody wallets give full control to users.
- Enterprise custodians offer institutional-grade protection with multi-signature authentication and cold storage.
- Confidential transfers, available on networks like Solana, enable private transactions where only involved parties see the amount transferred.
“The technology is there,” Shere insists. “It is trivially easy to do these things with speed and scalability.”
The Future: Instant Settlement and Beyond
While faster payments are the low-hanging fruit, the long-term vision is even more transformative.
Imagine a world where:
- Payroll for remote teams is processed instantly across 50 countries.
- Supply chain financing happens in real time as goods change hands.
- Tokenized real-world assets (like real estate or commodities) are paid for using programmable money.
Speed isn’t just about convenience — it unlocks new business models. Instant settlement means capital isn’t tied up for days. Liquidity improves. Cash flow becomes predictable.
For consumers, especially in emerging markets reliant on remittances, blockchain-based transfers mean more money reaches families faster — without losing a chunk to fees.
Shere notes that Solana’s user base already reflects this shift: many early adopters are small businesses and individual users leveraging the network for contractor payouts and peer-to-peer remittances. This grassroots adoption signals broader market readiness.
Frequently Asked Questions
Q: Are stablecoins safe for business transactions?
A: Yes — when issued by regulated entities like Circle or PayPal, stablecoins maintain full reserves and undergo regular audits. They offer stability without volatility, making them ideal for cross-border commerce.
Q: How fast are blockchain-based cross-border payments?
A: On high-performance blockchains like Solana, transactions typically settle in under one second — far faster than traditional systems that take days.
Q: Do I need technical expertise to use blockchain payments?
A: Not necessarily. Many platforms abstract away complexity with user-friendly interfaces similar to traditional banking apps.
Q: What about regulatory compliance?
A: Leading blockchain networks support KYC/AML integrations, transaction monitoring, and audit trails — enabling full compliance with international financial regulations.
Q: Can blockchain reduce foreign exchange costs?
A: Absolutely. Stablecoin swaps often provide better FX rates than banks by cutting out intermediary markups and enabling direct peer-to-peer exchange.
Q: Is self-custody risky for enterprises?
A: While self-custody requires robust security practices, enterprises can opt for regulated custodial services that combine control with institutional safeguards.
👉 Explore enterprise-ready tools for secure, compliant blockchain transactions.
Final Thoughts: The Time Machine Is Here
The dream of frictionless global payments no longer belongs to science fiction. With blockchain and stablecoins, we already have the tools to build a faster, fairer financial system.
The challenge now isn’t technological — it’s adoption. As more businesses experience the advantages of instant settlement, lower costs, and greater transparency, the shift will accelerate.
Blockchain isn’t just an upgrade to cross-border payments. It’s a reset.
Core Keywords: cross-border payments, blockchain technology, stablecoins, instant settlement, remittances, digital currency, financial infrastructure, global transactions