- A Bank of Italy study found that stablecoin remittances can cost between 0.30% and 9% of the transferred amount, depending on the corridor and local payment infrastructure.
- Western Union launched Stablecard, a Visa-backed wallet and card using USDPT stablecoin, in 37 markets, with plans to expand to 60+.
- The effectiveness of stablecoins for remittances is heavily influenced by on- and off-ramps, local banking systems, and currency conversion fees.
The world of cross-border payments is seeing a growing interest in using stablecoins as a faster and cheaper alternative to traditional remittance services. However, a recent study from the Bank of Italy and the latest moves by Western Union reveal that the reality is more nuanced. While stablecoins offer near-instant blockchain transactions, the overall experience depends heavily on how users convert between digital assets and local currency.
Western Union, a 175-year-old money transfer giant, has taken a significant step by introducing Stablecard, a digital wallet and Visa card that lets recipients hold and spend a dollar-backed stablecoin. At the same time, a comprehensive ‘mystery shopping’ exercise by the Bank of Italy shows that stablecoins don’t always beat traditional channels in cost or speed. These two developments highlight both the promise and the pitfalls of using stablecoins for remittances.
Bank of Italy Study: Costs and Speed of Stablecoin Transfers
The Bank of Italy’s research team conducted real transfers of 200 USDC through ten different brokers, connecting Italy with Argentina, Brazil, South Africa, the United Arab Emirates, and Japan. The total costs ranged from a low of 0.30% to nearly 9% of the transferred amount. This wide range shows that blockchain efficiency doesn’t automatically translate into lower overall costs. The largest expenses came from currency conversion, funding methods, and withdrawals, not from the on-chain transaction itself.
Interestingly, the on-chain portion of the transfer averaged only about 0.4% of the total cost. The rest was eaten up by fees for converting fiat to stablecoins and back, plus charges from exchanges and payment processors. For example, sending from Italy to Argentina was the cheapest at 0.30%, while the reverse route from Argentina to Italy cost a staggering 8.96%. The researchers noted that this disparity partly reflects the gap between official and market exchange rates in Argentina.
When comparing these stablecoin transfers with Wise, a popular traditional money transfer service, the results were mixed. USDC was cheaper in only three out of seven comparable routes, including Italy to Argentina, Italy to South Africa, and Brazil to Italy. In four other routes, such as the UAE corridors and Italy to Brazil, stablecoins proved more expensive. This suggests that stablecoins aren’t a universal solution; their cost advantage depends on the specific corridor and the existing financial infrastructure.
Western Union’s Stablecard: Bridging Crypto and Everyday Spending
While the Bank of Italy’s study highlights the challenges, Western Union is pushing forward with a product that aims to make stablecoins more practical for everyday use. The company launched Stablecard on August 4, 2026, in 37 markets, with plans to expand to over 60 by the end of the year. The card allows users to hold and spend USDPT, a dollar-pegged stablecoin issued by Anchorage Digital Bank on the Solana blockchain.
Stablecard works by letting remittance recipients receive funds directly into a digital wallet as USDPT. They can then spend those funds anywhere Visa is accepted, including through Apple Pay and Google Pay. The key innovation is that conversion to local currency happens at the point of sale, not at the moment of receipt. This gives users in high-inflation countries a way to preserve their purchasing power in dollars while still being able to pay for everyday items.
Western Union partnered with Rain, a stablecoin infrastructure provider, to handle compliance and operational logistics. The company first announced its Digital Asset Network (DAN) and USDPT in October 2025, with the token going live in May 2026. By integrating a stablecoin wallet with a global payment network, Western Union is trying to lower the barrier for people who have never used crypto. This move puts the traditional remittance giant in direct competition with crypto-native services and fintechs like Wise and PayPal.
The Role of Local Payment Infrastructure
Both the Bank of Italy study and Western Union’s launch underscore that the speed and cost of stablecoin remittances are often determined by local payment systems. In the study, transfers that used instant payment networks like TIPS in Italy, Pix in Brazil, and Transferencias 3.0 in Argentina were completed in under 20 minutes. However, routes relying on standard bank transfers, such as those in South Africa, took one to two business days. This shows that the blockchain’s speed can be nullified by slow fiat on- and off-ramps.
The researchers concluded that stablecoins and fast domestic payment systems work as complements, not substitutes. Without efficient local payment rails, the advantage of stablecoins disappears. This is a crucial insight for policymakers and companies looking to improve cross-border payments. Western Union’s Stablecard tries to address this by using Visa’s existing network for spending, which bypasses the need for recipients to convert to local currency immediately.
For users in volatile economies, the ability to hold a dollar-pegged asset is a major draw. Countries like Argentina, Nigeria, and Turkey have seen growing demand for digital dollars as a hedge against inflation and currency devaluation. Stablecard offers a regulated and familiar way for remittance recipients to access this benefit, backed by a bank with a federal charter. However, the company hasn’t disclosed its fee structure or how it will handle regulatory variations across different countries.
Future Outlook for Stablecoin Remittances
The landscape for stablecoin remittances is evolving rapidly, but the evidence suggests that these digital assets are not a magic bullet. The Bank of Italy’s study is one of the most thorough real-world tests to date, and it found that stablecoins can be cheaper in some corridors but more expensive in others. The key variables are the quality of local payment infrastructure, the availability of on/off-ramps, and the transparency of fees.
On the other hand, Western Union’s entry into this space validates the growing demand for stablecoin-based services. The company’s extensive network and brand recognition could accelerate adoption among users who are new to crypto. The combination of a stablecoin wallet and a Visa card is a powerful way to bridge the gap between digital assets and everyday spending. As more companies like MoneyGram and Circle (with its Arc blockchain) explore similar initiatives, the competition will likely drive down costs and improve user experience.
Ultimately, the success of stablecoin remittances will depend on how well they integrate with existing financial systems. The Bank of Italy’s researchers emphasize that stablecoins need efficient traditional payment systems to compete effectively. Western Union’s Stablecard is a step in that direction, but it remains to be seen whether it will offer lower fees than traditional services. For now, the evidence points to a future where stablecoins play a significant role, but not a revolutionary one, in cross-border payments. The technology is ready, but the surrounding infrastructure and regulatory frameworks still need to catch up.
