Stablecoins Redefine Cross‑Border Payments as Financial Infrastructure

Analysts argue that stablecoins should be viewed as core financial infrastructure rather than merely a crypto product. By replacing fiat with a digital token for the middle layer of a cross‑border transaction—often described as a “stablecoin sandwich”—they can speed settlement and add programmability. However, the model conceals the most difficult aspect of institutional adoption: the trust and compliance layer. While blockchains can confirm that a transfer occurred, they cannot verify who is authorized to send or receive funds or whether the transaction complies with regulations in each jurisdiction. Consequently, stablecoin payments involve a fragmented set of participants, including banks, stablecoin issuers, exchanges, payment processors, wallet providers and local payout companies, each responsible for different verification steps. The shift signals a broader transformation of monetary plumbing, with stablecoins acting as the conduit that could reshape global payment systems.