A new payment model called the “stablecoin sandwich” is being touted by fintech leaders as a faster, cheaper way to move money internationally—by wrapping fiat in blockchain and bypassing traditional banks.
At a Glance
- A stablecoin sandwich converts fiat into stablecoins for blockchain transfers before re-exchanging into local currency
- Two models—“full” and “open” sandwiches—offer either automated fiat payout or recipient-held stablecoins
- The system reduces fees, speeds transfers, and scales easily across currency routes
- Deloitte predicts 25% of large-value cross-border payments will be tokenized by 2030
- Pending U.S. regulation could accelerate stablecoin adoption in enterprise payments
What’s Inside the Stablecoin Sandwich?
A “stablecoin sandwich” involves converting local fiat into a stablecoin like USDC or USDT, transferring it across blockchain infrastructure, and then converting it back into fiat at the destination. The full model automates the off-ramp to local currency, while the open model leaves stablecoins with the recipient, who can choose when and how to convert them.
The appeal lies in cost, speed, and reach. Traditional correspondent banking systems involve multiple intermediaries, each taking fees and time. In contrast, stablecoins can move across public blockchains in seconds with minimal fees—making them ideal for remittances, B2B payments, and digital wallet ecosystems.
Why Enterprises Are Jumping In
Financial institutions are starting to take notice. JPMorgan, Visa, and other major players are exploring stablecoin rails for enterprise-grade settlements. Retailers like Walmart and Amazon are also experimenting with wallet-based disbursements using blockchain-compatible assets.
Watch a report: Stablecoins Revolutionize Cross-Border Payments.
Analysts at Deloitte project that by 2030, up to 25% of large-value international payments could migrate to tokenized formats. With the right APIs and compliance infrastructure, the stablecoin sandwich could offer seamless interoperability across currencies, chains, and platforms.
Regulatory Wildcards Ahead
The rise of these models is contingent on regulatory clarity. Proposed U.S. legislation like the GENIUS Act aims to define standards for reserve backing, redemption rights, and financial disclosures. If passed, it could validate stablecoin issuance at scale—inviting banks and fintechs to build around compliant, tokenized assets.
But challenges remain. Reliable on- and off-ramps, anti-money laundering safeguards, and public trust are critical for broad adoption. Cross-chain operability and user-friendly wallets must mature before these systems become mainstream.
Still, the stablecoin sandwich represents a rare convergence of technical feasibility and commercial demand. As global liquidity finds its way into programmable money, this model may soon move from pilot to pipeline.
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Author: Editor
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