Compare legacy systems and Conduit in cross-border payments and discover how stablecoins are transforming this market.
Stablecoin technology is reshaping international payments. The sector reached USD $300 billion in market capitalization in 2025, with strong expectations for continued growth in the coming years. B2B payments are among the main use cases for stablecoins and recorded more than a 50x increase in transaction volume between 2023 and 2025.
This rise reflects the need for transformation in international payments, which still largely operate through traditional systems such as SWIFT (Society for Worldwide Interbank Financial Telecommunication) and continue to face significant bottlenecks.
These legacy systems were created decades ago and played an important role in enabling international transactions at the time. Today, however, with the widespread adoption of instant payments and faster, more accessible local financial services, this fragmented infrastructure has become outdated, and the market is demanding evolution.
New technologies and investments are being directed toward modernizing cross-border payment infrastructure. According to a recent J.P. Morgan report, cross-border payments continue to grow despite macroeconomic uncertainty, increasing from USD $194.6 trillion in 2024 to a projected USD $320 trillion by 2032.
In this context, stablecoins have gained significant prominence in recent years, bringing infrastructure that promises to address the bottlenecks of transactions processed through traditional systems.
Conduit stands at the forefront of this stablecoin payments segment by offering an alternative to legacy systems that can integrate directly with local financial rails worldwide, removing multiple layers of intermediaries and correspondent banks, and optimizing transactions even in traditionally complex corridors such as Latin America, Africa, and Asia.
In this article, we will explore in depth why traditional banks are losing ground to stablecoin-based solutions, highlight the key differences between these two models, and examine how Conduit positions itself in this landscape to meet the needs of international B2B payments.
Traditional banks are losing ground to more digital alternatives because their systems are no longer adequately meeting market needs, largely due to their fragmented structure. With international trade becoming increasingly connected and borderless, and with advances in local payment solutions, users today expect tools that are faster, more accessible, and less bureaucratic.
Legacy systems face three major challenges that lead clients to seek alternative solutions.
The biggest problem with the traditional banking system is the time required to complete transactions. Transfers can take days or even weeks to be finalized, even when banks claim to offer faster processing.
The root cause lies in the structure of legacy systems themselves. Many banks still rely on batch processing rather than real-time settlement, with multiple intermediaries and correspondent banks involved in transactions until funds reach the recipient account.
Each participant has its own processes, which in many cases are poorly automated, directly impacting transaction completion times. In addition, these participants typically do not operate on weekends or holidays, causing customers to wait longer than necessary to complete what should be a simple transfer of funds.
Banking costs accumulate through multiple charges:
These costs add up quickly and are difficult to predict, making this a recurring challenge for companies that carry out international transfers, with direct impacts on business liquidity.
Transparency issues in the traditional banking system may be the most sensitive. Payment information is often lost along the process, and there is no clear visibility into the transfer journey. Most companies and consumers do not know exactly when a payment will arrive or what fees will be charged, making it difficult to track payments and identify the source of delays.
Companies face challenges in accounting, cash flow management, and even in their relationships with business partners and suppliers. Trust can be undermined when recipients receive less than expected due to hidden fees.
Conduit has been transforming international payments by addressing the challenges described above through its stablecoin-based infrastructure. The company has built a solution that seamlessly integrates with blockchain networks and the traditional banking system.
It is important to note that stablecoin infrastructure does not replace legacy systems, but rather provides a resilient technological layer that eliminates the fragmentation of legacy systems and their multi-intermediary model. It integrates directly with local instant payment networks through Conduit’s integration with more than 20 banks worldwide. Below are additional elements that differentiate Conduit’s stablecoin infrastructure from legacy systems:
Conduit creates efficient connections between the traditional financial system and digital assets through on/off-ramp technology. Companies can convert fiat currencies into stablecoins and vice versa, with direct connections to payment systems in multiple countries, enabling more efficient account-to-account (A2A) transactions.
Unlike traditional FX desks, Conduit executes currency conversions on-chain through smart contracts and algorithms. This method delivers competitive rates consistently, without the operational cost of human intermediaries. The entire process – from payment initiation in one country to final delivery in another – takes only a few minutes, eliminating the long settlement times associated with correspondent banking systems.
Companies receive exact quotes before initiating transactions, with all fees clearly disclosed. This transparency removes the uncertainty common in traditional international transfers, where the final cost is often only known at the end of the transaction.
Conduit’s stablecoin infrastructure acts as a common settlement layer that connects previously isolated payment networks. It also helps unlock historically inefficient corridors, such as China, Latin America, and Africa, where settlement can take weeks due to liquidity constraints and an excessive number of intermediaries.
By integrating local banking systems, instant payment networks, and blockchains, Conduit reduces reliance on multiple intermediaries and simplifies cross-border flows, particularly in traditionally complex corridors.
Some payment providers require the maintenance of pre-funded accounts in multiple countries, generating high operational costs. Conduit takes a different approach by settling transactions in real time, on demand. This eliminates the need to hold capital across multiple currencies and jurisdictions, allowing companies to use their resources more efficiently.
Companies across multiple industries are adopting stablecoin-based solutions to optimize the international transactions that are part of their day-to-day operations. Below are some examples of how Conduit delivers advantages in specific scenarios.
Reduction of foreign exchange risk by using stablecoins as a settlement layer, helping protect margins while ensuring faster and more transparent transactions.
Use of stablecoins to scale cross-border operations more efficiently, integrating multiple markets without the complexity of the traditional banking model.
Centralization and optimization of liquidity, with greater visibility into multi-currency flows and reduced need for pre-funded capital.
Faster and more predictable international payments, reducing costs, settlement times, and reliance on intermediaries.
The stablecoin payments landscape presents both opportunities and challenges as the ecosystem continues to grow rapidly. The market reached USD $300 billion in capitalization in 2025, and some experts project it could reach USD $1 trillion in 2026.
As regulatory frameworks advance globally with greater integration of Virtual Asset Service Providers (VASPs) into the traditional financial system, and increasing convergence between existing and emerging technologies, stablecoins are expected to play an increasingly important role in cross-border payments.
The GENIUS Act, enacted in July 2025, establishes the first detailed regulatory framework for stablecoins in the United States and is encouraging the development and adoption of digital assets across multiple countries. The legislation introduces licensing requirements, full backing with high-liquidity assets, robust governance standards, and compliance with anti-money laundering regulations.
The law is expected to enter into force between late 2026 and early 2027 and provides greater regulatory clarity for issuers and participants in stablecoin-based payment infrastructure. This progress is likely to reduce legal uncertainty, strengthen governance standards, and increase institutional confidence in the use of stablecoins for cross-border payments and settlement.
Companies such as Conduit, which already meet strict requirements related to compliance, risk management, and governance, will be in a stronger position to obtain the licenses outlined under the GENIUS Act once it becomes effective, reinforcing their competitive position in a highly dynamic sector.
The outlook for 2026 is clear: stablecoin technology will continue to transform traditional cross-border payment systems. This comparison shows that legacy banks are unable to compete with the speed, cost efficiency, and transparency offered by infrastructures such as Conduit’s. While banks process transactions over several days and charge high fees, Conduit completes transfers in minutes at a fraction of the cost, positioning itself as a more effective alternative for cross-border operations.
Growth data from the stablecoin payments market speaks for itself, as companies of all sizes have recognized the benefits of using these solutions to pay global suppliers, hedge foreign exchange risk, integrate fintech platforms, or optimize treasury operations.
Each year, blockchain technology expands its advantage over legacy systems. Companies that continue to rely solely on traditional banks for international transfers will fall behind in 2026 and face increasingly compressed margins. The future belongs to those that adopt new approaches based on speed, transparency, and efficiency – and Conduit is ready to lead this change.
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