Zelle Adopts Stablecoins to Address Challenges in Cross-Border Payments

Zelle, a peer-to-peer payment platform owned by U.S. banks, is preparing to enter the international remittance market by utilizing stablecoins—a step that could significantly alter the landscape of cross-border payments and pose new competition to established fintech companies. Early Warning Services, which operates Zelle, revealed plans to extend the network’s domestic achievements—processing more than $1 trillion annually and serving 150 million users—by delivering quicker and more affordable global money transfers, as reported by

. The company, supported by leading financial institutions including , , and , stressed that this new direction is intended to tackle ongoing issues in global payments, such as transaction speed, expenses, and regulatory requirements, according to .

This move is part of a growing trend in the financial sector toward stablecoins—digital assets tied to government-backed currencies like the U.S. dollar. These coins combine the dependability of fiat with the efficiency of blockchain technology and have gained more regulatory certainty in the U.S. since the GENIUS Act was enacted in July 2025, as noted by

. The legislation, which set out clear rules for issuing and trading stablecoins, has encouraged banks and other financial firms to consider their use for international payments. Cameron Fowler, CEO of Early Warning, pointed out that the project leverages Zelle’s experience in the U.S., stating, "Zelle changed the way Americans transfer money domestically. Now, we’re starting to apply that same speed and dependability to cross-border remittances," according to .

Industry analysts believe Zelle’s timing and strategy are advantageous. Payments expert Aaron McPherson remarked that Zelle’s partnership with major banks allows it to avoid the disjointed approaches of single institutions. "This is best accomplished through collective effort, not by individual banks," he explained, adding that stablecoins’ regulatory acceptance and instant settlement features make them well-suited for international payments, as reported by Digital Transactions. With a network linking 2,300 U.S. banks and credit unions, Zelle could speed up stablecoin adoption by embedding them into existing digital banking platforms, a point raised by American Banker.

Nonetheless, there are hurdles to overcome. Ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) rules will demand strong systems, especially as Zelle deals with different regulations worldwide. Tony DeSanctis from Cornerstone Advisors cautioned that non-bank entities like PayPal or crypto-based stablecoins such as USDC may also vie for users, particularly among businesses looking for proven alternatives, as mentioned by American Banker. Furthermore, while Zelle has

yet revealed which stablecoins it will use or what fees will apply, experts expect that dollar-based stablecoins—already favored in developing economies to guard against inflation—will likely be prioritized, according to .

This development is part of a larger shift in the sector. Rivals like PayPal and Wise are also testing stablecoin-powered remittance solutions, and reports indicate Zelle has previously weighed launching its own stablecoin, as stated by

. With global cross-border payments expected to rise, Zelle’s participation could heighten competition and lower costs. "Zelle’s extensive payment network gives it the scale to succeed," said Eric Grover of Intrepid Ventures, noting that its backing from major banks could give it an edge over decentralized stablecoin systems, as highlighted by American Banker.

Early Warning Services has promised to share further information in the near future, including launch schedules and technical details. For now, the announcement marks a significant milestone for stablecoins, which have reached a $312 billion market capitalization and are increasingly seen as a link between conventional finance and blockchain technology, according to Crowdfund Insider.