A new model in Payments is emerging: šš”š ššššš„šššØš¢š§ ššš§šš°š¢šš”
Here's how it works:
For decades, international payments have moved through a network of correspondent banks.
Each transaction passed through multiple intermediaries, from local to international correspondents and back again, taking days and incurring fees at every step.
This system worked, but it was slow, expensive, and opaque.
A new model is emerging ā The Stablecoin Sandwich ā where blockchain replaces those intermediary layers to enable direct, near-instant settlement.
Hereās how it works:
ā The sender initiates a transfer in fiat (for example, euros).
ā An on-ramp partner converts those euros into a stablecoin such as USDC.
ā The stablecoin moves across the blockchain, serving as the settlement medium.
ā An off-ramp partner converts the stablecoin into local currency (such as pesos or reais).
ā The recipient receives funds in their local account, often in under 30 minutes.
ā This hybrid flow combines the compliance and familiarity of traditional finance with the efficiency, transparency, and programmability of blockchain technology.
The scale of this transformation is already visible.
Stablecoin transactions now exceed $7 šš«š¢š„š„š¢šØš§ annually, surpassing 50% of Visaās global network volume.
Stablecoins are becoming a fundamental layer for liquidity management, B2B settlement, and cross-border treasury flows.
An entire ecosystem is forming around this shift:
ā šš§ššš«š©š«š¢š¬š & š2š: BVNK, Bitwave, and Contact are helping global merchants manage stablecoin liquidity, compliance, and treasury operations.
ā šš„šØšš¤šš”šš¢š§ šš§šš«šš¬šš«š®ššš®š«š: Polygon Labs, Aptos Labs, and Chainlink Labs are building the rails that connect traditional payment networks with blockchain-based settlement.
ā ššš„š„ššš¬ & šš®š¬ššØšš¢šš§š¬: Dfns and BitGo offer programmable, secure wallet solutions designed for enterprises managing large digital asset volumes.
ā ššš²š¦šš§š šš«šØššš¬š¬šØš«š¬: Mural Pay, Fipto and Noah are integrating stablecoin rails into existing payment stacks, bridging traditional and digital commerce.
ā An exciting one, Breeze is reimagining the ššš«šš”šš§š šØš ššššØš«š (MoR) model with programmable, blockchain-enabled settlements that occur instantly.
What's happening is not a replacement of the financial system, but an upgrade.
Traditional bank accounts are evolving into wallets. Money movement is becoming programmable. Settlement is shifting from days to seconds.
The Stablecoin Sandwich represents a new layer of global financial infrastructure, one that merges the reliability of banks with the speed and transparency of blockchain.
Source: Fipto, CB Insights, Dawn Capital, and kudos to Arthur Bedel for this great update! š