Report: Stablecoins Are Reshaping Remittances
A Solana Foundation report details how stablecoins are cutting costs and speeding up cross-border payments, with major firms already launching services.
Remittance systems have remained largely unchanged since the 1950s, with fees averaging 6.49% on a $200 transfer and delays of three to five business days. Hundreds of billions of dollars are tied up in pre-funded accounts to ensure timely delivery. The Solana Foundation’s report, *An Evolution of Money Movement: How Stablecoins on Solana Are Reshaping Remittances*, examines these inefficiencies and proposes solutions for money transfer operators and fintech startups.
Western Union introduced USDPT, issued by Anchorage Digital Bank, alongside its Digital Asset Network and Stablecard with Rain. Zepz, the parent company of WorldRemit and Sendwave, launched the Sendwave Wallet for recipients in over 100 countries. Tala, serving 13 million customers in emerging markets, deployed a $50 million tokenized lending facility with Huma Finance to expand access to capital.
Local conversion in key corridors is handled by Yellow Card, Flutterwave, Bitso, Trace Finance, and Sphere Pay, enabling stablecoin-based transfers to reach recipients efficiently. The report highlights four entry paths for operators and provides corridor deep dives on Mexico, Nigeria, the Philippines, and India to illustrate practical applications.
Workers send $905 billion annually through outdated remittance rails, where a $200 transfer costs 6.49% and takes three to five days. The Solana Foundation’s report argues that stablecoins on Solana can reduce fees, speed up settlements, and unlock liquidity currently locked in pre-funded accounts.