Stablecoins Still Need Banks for Cross-Border Payments, Trace Finance CEO Says

Stablecoins can speed up the middle leg of international transfers, but they do not remove banks from cross-border payments, according to Trace Finance Co-Founder and CEO Bernardo Brites.

Brites said institutional stablecoin processors are increasingly building deeper ties with traditional banking infrastructure as scale grows. He pointed to recent corporate moves and broader payment market data to support the view.

Banks remain the entry and exit for fiat

In a cross-border payment, Brites described three parts: the payer sends local currency through a domestic system (such as Pix in Brazil), stablecoins move value between institutions on-chain, and the recipient converts stablecoins back into local currency and deposits into a bank account.

Banks, he said, are still essential for the first and final legs. They provide access to fiat currency, domestic payment networks and regulated compliance systems. “Every flow still begins and ends in fiat,” the column said.

Stablecoin growth is tied to bank access and compliance

Brites argued that as stablecoin activity scales, dependence on banking relationships increases. He said a company processing $50 million annually may be able to operate with one bank, one stablecoin issuer and one compliance system. At $10 billion, growth depends on how many markets its banking relationships, foreign exchange capabilities and licenses can support.

He cited examples of how quickly banking access can change, including the collapse of Silvergate Bank, Signature Bank’s receivership, and regulatory “pause letters” released by Coinbase.

Convergence with traditional finance is accelerating

Brites referenced moves that connect stablecoin services with mainstream financial infrastructure. He cited Stripe’s $1.1 billion acquisition of stablecoin platform Bridge, Citi’s launch of crypto custody services, and Standard Chartered’s stablecoin settlement tests in Singapore.

He also pointed to the gap between stablecoin transaction totals and actual commercial payment usage. Cross-border payments reached $208 trillion in 2025, according to FXC Intelligence figures. Stablecoin payments running at approximately $390 billion annually by late 2025 were based on McKinsey and Artemis estimates.

He said frequently cited stablecoin transaction totals exceeding $30 trillion include activity such as automated trading, exchange transfers and bot activity rather than commercial payments.

Regulatory standards could shape competitive advantage

Brites said compliance infrastructure may become a differentiator as adoption expands. He referenced the GENIUS Act’s reserve, disclosure and licensing standards, which push stablecoin issuers toward bank-grade safeguards, including relationships with banks holding reserve assets.

An EY-Parthenon survey found that 13% of financial institutions and corporations use stablecoins, while 80% of non-users are considering them.

Why it matters

As stablecoin settlement becomes faster and more programmable, Brites’ argument is that durable cross-border payment businesses will be built on banking access, licensing coverage and foreign exchange foundations, not on blockchain rails alone.