U.S. and UK Plan to Bring Stablecoins Into Cross-Border Payments

The Group of 20 endorsed its cross-border payments roadmap in 2020, tasking the Financial Stability Board and the Bank for International Settlements’ payments committee with improving speed, cost, transparency and data interoperability. The effort matters for stablecoins because faster, cheaper and round-the-clock settlement has been one of their strongest pitches to businesses moving money across borders.

By end-2027, the G20 targets call for at least 75% of wholesale and retail cross-border payments to reach recipients within one hour, while the global average cost of remittances should fall below 3%. As banks connect instant-payment systems and adopt compatible messaging standards, stablecoin providers will need to differentiate themselves through atomic settlement, 24-hour global liquidity and programmable treasury functions that conventional payment rails may struggle to replicate.

The U.S. dollar remains the leading currency for foreign exchange, cross-border payments, official reserves and international financing, supported by deep U.S. markets and confidence in American institutions. Dollar-backed stablecoins are increasingly extending that infrastructure onto blockchains, giving households and businesses new ways to hold and transfer dollar value. Their growth matters because it could broaden access to dollar finance and reshape payment intermediation without displacing the currency’s underlying global role.

The Federal Reserve Board and the Federal Reserve Bank of New York held the fifth Conference on the International Roles of the U.S. Dollar in Washington on June 22-23, 2026. Research presented there showed USDC and USDT circulation reached $263 billion in December 2025, while monthly on-chain volume hit $6.2 trillion, about four times Bitcoin’s. Speakers said stablecoin rails can complement correspondent banking, lower some cross-border costs and reinforce dollar use in international payments, trade and settlement.

Stablecoins, typically pegged to fiat currencies such as the U.S. dollar, promise round-the-clock settlement and fewer intermediaries. The Financial Conduct Authority is developing a framework for their use in payments as Britain prepares a broader cryptoasset regime. The question is where the technology offers a meaningful advantage: UK consumers already have fast, cheap domestic payment options, while cross-border transfers can remain costly and slow, especially in emerging markets where access to dollars and correspondent-banking services is constrained.

The FCA said on July 28, 2026, that a two-day policy sprint held in March with about 75 participants identified cross-border payments as stablecoins’ clearest near-term opportunity, particularly for transfers to and from emerging markets with limited U.S. dollar access. A May 15 trade-finance roundtable drew about 30 attendees. Participants found a weaker case for UK retail adoption because existing payments are already cheap and fast, though merchants could benefit from lower card costs, faster settlement and improved liquidity.

Stablecoins, most of which are pegged to fiat currencies such as the U.S. dollar, have expanded beyond crypto-asset trading into cross-border settlement. Their growing role has implications for capital flows, monetary sovereignty and sanctions risks. The People’s Bank of China is concerned that privately issued currencies could amplify the “weaponization of payments” and disrupt transactions, while regulation also requires countries to coordinate their payment and foreign-exchange regimes.

On June 17, 2026, Wang Xin, head of the PBOC’s Research Bureau, said authorities should closely monitor stablecoins’ impact on the international monetary system and cross-border payments and strengthen international regulatory cooperation. Data cited in the report showed stablecoin supply at about $315 billion in the first quarter of 2026, with quarterly transaction volume exceeding $28 trillion. China had also banned unauthorized yuan-denominated stablecoins and real-world asset tokens in February that year.