Stablecoins reshaping cross-border payments in Asia? Strategic panorama and investment opportunity analysis

Author: Turbo, IOSG

TLDR

1. The stablecoin strategies of cross-border payment companies fall into three categories: stablecoin acceptance (accepting stablecoin settlements), stablecoin issuance (applying for licenses to issue stablecoins), and isolating regulatory risks through independent offshore brands. Currently, only a few companies have truly launched products.

2. Stablecoins have weak advantages in terms of fees or speed in cross-border payments. With the proliferation of local payment channels, traditional transfer costs have been significantly reduced, and current fees are mainly concentrated in domestic settlement, which stablecoins cannot bypass. Currency exchange is also unavoidable; stablecoins have not truly solved these two core pain points.

3. Emerging digital banks (Neobanks) are the highest value segment in the stablecoin cross-border payment value chain. The real advantage of stablecoin payments lies in the internal circulation of the ecosystem, which can achieve zero friction only when both ends of the transaction settle in stablecoins. Regions with weak banking infrastructure, such as Southeast Asia, the Middle East, and Africa, are the strongest landing scenarios, and Tether's investment in SQRIL is a clear signal.

I. Myths of Stablecoin Cross-Border Payments

The stablecoin strategies of Asian cross-border fintech companies mainly include three directions:

• Stablecoin usage: accepting stablecoin settlements for payments

• Stablecoin issuance: applying for licenses to issue stablecoins

• Independent brands: conducting crypto/stablecoin business through independent offshore entities, isolating regulatory risks from domestic licenses

Independent offshore entities are a necessary condition All companies with substantial stablecoin business operate through independent offshore entities: KUN (under Yeepay), DFX Labs (under LianLian), RD InnoTech (under RD Technologies). Stablecoin acceptance is currently the only launched product, but few companies disclose fees and settlement speed Most companies start with stablecoin acceptance rather than stablecoin issuance, including LianLian, KUN, and OristaPay. Currently, only RD InnoTech is closest to truly issuing a stablecoin (HKDR).

However, there has yet to be a company that publicly discloses the fees and settlement speeds for stablecoin payment services like other mature payment companies. The only company to disclose fees is BVNK, which has a fee structure of: transfer fee 0 + standard currency exchange fee + service fee for external wallet transactions + blockchain fee. The issuance of Hong Kong licenses in March 2026 will be a turning point for the industry The HKMA will issue the first batch of stablecoin issuance licenses in March 2026, with very few companies expected to be approved. Companies confirmed to apply for licenses include RD InnoTech, JD, and Anchorpoint Financial. RD InnoTech has a higher probability of approval as it has entered the HKMA's stablecoin issuer sandbox.

The licensing results will determine which companies can upgrade from stablecoin usage to stablecoin issuance and whether Hong Kong can become a true stablecoin center or remain limited by Beijing's influence. Reasons for the slow implementation of stablecoins by cross-border payment companies # Stablecoins have almost no fee or speed advantage in cross-border payments For a cross-border business owner, completing a cross-border payment from abroad to mainland China mainly involves three steps: transfer, currency exchange, and domestic settlement.

• Transfer: Moving funds from an overseas buyer to the payment platform through SWIFT, local bank payment channels, or internal wallets.

• Currency exchange: Converting foreign currency (such as USD, EUR) into RMB at a specific exchange rate.

• Domestic settlement: Withdrawing the converted RMB to a mainland Chinese bank account or Alipay.

# New channels such as local payment channels have driven traditional transfer costs close to 0% and speeds close to real-time Traditionally, SWIFT transfer fees are high and time-consuming, making them a major source of cross-border payment costs. In the companies analyzed in this article, transfer fees account for 56% of total costs. For example, using SWIFT through Airwallex incurs a fee of about $25.

However, many cross-border fintech companies now have local payment channels, which means:

• Fintech companies collect payments through local payment networks in the payer's location (e.g., ACH in the US, SEPA in Europe, UPI in India), complete fund transfers within their global network, and then make payments through local payment networks in the payee's location, completely bypassing SWIFT.

New channels have significantly reduced cross-border transfer costs. Currently, domestic settlement accounts for 58% of total costs.

However, domestic settlement is not a step that stablecoins can bypass, as users always need to hold RMB cash in their bank accounts.

Stablecoins cannot bypass domestic settlement, and currency exchange is also an indispensable part of cross-border payments, leaving almost no room for stablecoins to enhance user experience. Transfers are close to real-time and costs are approaching zero; currency exchange is the main source of fees, and stablecoin companies also need to perform currency exchanges for users.

Overall, if we fairly compare the cross-border transfer step (excluding domestic settlement and currency exchange), stablecoins have no room for improvement.

II. Investment Insights from Emerging Digital Banks

Core Argument: Emerging digital banks (Neobanks) are key to stablecoin cross-border payments The value chain of stablecoin cross-border payments is divided into three layers:

1. Issuance layer (Tether, Circle, HKMA licensed entities): creating stablecoins

2. Infrastructure layer (Bridge/Stripe, BVNK, Circle CPN): circulation and exchange of stablecoins

3. Distribution/terminal layer (emerging digital banks): converting stablecoins into local purchasing power

Emerging digital banks are the core bottleneck in the value chain and represent the highest value opportunity.

# Emerging digital banks are the "last mile" Stablecoin cross-border payments only truly have advantages in an ecosystem where stablecoins themselves are the final destination (rather than fiat bridges).

If merchants receive payments in stablecoins, pay suppliers in stablecoins, and employees are paid in stablecoins and consume through native stablecoin emerging digital banks, the entire transaction will be completed entirely on-chain, without touching traditional channels.

Once any party needs to convert back to fiat, the cost of withdrawal will reintroduce settlement fees comparable to those of fintech local channels. This is precisely why stablecoin payments are most compelling in regions with weak banking infrastructure, active remittance channels, or crypto-native communities.

Additionally, Neobank users can earn yields above market averages while holding stablecoins, providing extra motivation for users to choose stablecoin cross-border payments, not just as a payment tool but as an interest-bearing asset. # Must focus on regions with weak financial infrastructure The most compelling scenarios for stablecoins are those where stablecoins are more convenient than traditional banks:

• Southeast Asia (Philippines, Vietnam, Indonesia): over 44% unbanked population, high penetration

• Middle East/Africa: large remittance channels, weak local payment channels, and a positive and open regulatory attitude (the UAE has established four regulatory frameworks)

Tether plays a role in Vietnam as a parallel financial system. Tether's investment in SQRIL indicates its growth strategy is betting on the emerging digital bank layer—allowing people in underdeveloped countries to consume USDT in local ways—this is the strongest market signal. # Why Series A/B rounds are the best investment window Emerging digital banks for stablecoins are infrastructure-heavy businesses that require local licenses, local bank partners, KYC/AML compliance infrastructure, merchant networks, and consumer trust accumulation.

• Seed/Pre-A rounds are too early: business models are unproven, regulatory risks are high, and unit economics are unclear.

• Series A/B rounds are the best window: demand has been validated, compliance has been confirmed, and unit economics have been verified, significantly reducing investment risks.

• Later stages/IPOs may be too late: valuations may have fully reflected the premium of mature business models.

III. Detailed Analysis of Stablecoin Strategies of Various Cross-Border Payment Companies

Airwallex Airwallex adopts a more cautious strategy: first completing internal construction and then deploying when regulatory and market conditions mature. This reflects the company's existing advantages in traditional payment channels, reducing the urgency to adopt stablecoins immediately. Stablecoin/blockchain integration: skeptical, no launched products yet # CEO Jack Zhang is skeptical of stablecoins

• He believes Airwallex can already achieve "real-time transfers with fees below 0.01%" and states "you can't be cheaper than free or faster than real-time."

• The company's official blog also presents this stance, pointing out that existing local payment channels are already efficient enough.

# Internal stablecoin team Airwallex announced 22 stablecoin engineer positions in July 2025 to build a token settlement platform team. The recruitment information disclosed that the company is building infrastructure to allow customers and internal systems to buy, hold, send, and settle tokens globally, supporting near-instant global payments and achieving on-chain liquidity management as well as seamless conversion between fiat and stablecoins.

Planned application scenarios include: cross-border settlement in emerging markets, on-chain liquidity management, and programmable payments with fiat-to-stablecoin exchange services. # Current Status

• Currently, there are no launched stablecoin products. The mission update at the end of 2025 did not mention stablecoins at all.

• No public partnerships have been established with Circle, Tether, or other stablecoin issuers.

• The strategic focus for 2026 is on regional expansion, AI-driven developer tools, and enhancing customer experience, with stablecoins not included.

• The company blog (January 2026) states: the validity of stablecoins is still inconclusive.

XTransfer Stablecoin/blockchain integration: positive attitude, but no launched products yet # Overseas stablecoin acceptance service XTransfer announced in August 2025 that it would launch an overseas stablecoin acceptance service within the year, initially open to select customers. However, as of February 2026, there has been no official confirmation of the service's launch. # Speculation: dual wallet model The core of XTransfer's stablecoin strategy is a dual-currency wallet model that allows businesses to hold both fiat and stablecoins simultaneously. WorldFirst Stablecoin/blockchain integration: WorldFirst products have not yet involved stablecoins, but Ant International is building blockchain infrastructure

• WorldFirst's own products currently do not offer stablecoin or crypto services. Its official services do not include blockchain, stablecoins, or digital currency-related content; all WorldFirst products operate on traditional banking channels.

• However, its parent company Ant International is building important blockchain infrastructure, which is expected to gradually extend to WorldFirst:

# Whale platform tokenized deposit service (TDS) In 2024, over one-third of Ant International's total funds processed, exceeding $1 trillion, were completed using blockchain technology through the Whale platform. This is not a stablecoin but a tokenized deposit service (TDS).

Tokenized deposits are issued by licensed banks, not stablecoin companies. For example, tokenized deposits allow HSBC customers to create digital records for their traditional fiat deposits. HSBC holds the fiat deposits, while each digital record on the DLT is a transferable token, allowing customers to complete fund transfers without waiting for batch processing.

In May 2025, Ant Group and HSBC jointly launched Hong Kong's first blockchain settlement solution for tokenized deposits, supporting real-time payments in HKD and USD through corporate wallets.

• Other tokenized deposit partners include: DBS Bank, Standard Chartered Bank, OCBC Bank, BNP Paribas, JPMorgan Kinexys Digital Payments, and Deutsche Bank.

• UBS Digital Cash (November 2025): UBS Singapore signed an MoU with Ant International to explore multi-currency tokenized deposit capabilities and integrate them into the Whale platform.

• Standard Chartered Bank (December 2025): Launched HKD, offshore RMB (CNH), SGD, and USD tokenized deposit solutions on the Whale platform, completing a cross-bank token transfer of HKD 38 million (from HSBC to Standard Chartered).

• Ant International has partnered with ten international banks to support tokenized deposits on the Whale platform.

• Participated in the Monetary Authority of Singapore's (MAS) Project Guardian for the application of tokenized deposits in transaction banking (ISDA and Ant jointly released an industry report on the use of tokenized bank liabilities for foreign exchange settlement).

Yeepay Stablecoin/blockchain integration: Yeepay's official products are not directly integrated

• Yeepay's official products do not integrate stablecoins. However, Yeepay's co-founder is actively laying out stablecoin payment business through the independent brand KUN.

# KUN Product Matrix

Note: KUN serves only customers "outside mainland China and the United States." # KUN Partners and Integration

• Circle Payments Network (CPN): Launched. According to Circle, KUN is a CPN partner, supporting 24/7 USDC/EURC stablecoin settlements. The CPN mainnet officially launched in mid-2025, with 29 financial institutions onboarded.

• WSPN: Integrated WUSD (USD-pegged stablecoin) into the KUN Space platform for cross-border enterprise transactions (March 2024).

• Marco Digital (01942.HK): Reportedly completed Asia's first insurance commission payment based on USDT through KUN (August 2025).

LianLian Pay Stablecoin/blockchain: Implemented, integrating stablecoins through partners

• LianLian Pay is one of the most proactive companies in stablecoin strategy among Chinese cross-border payment companies.

# Circle/USDC MOU: still in exploratory stage, no launched products yet Signed an MOU with Circle to evaluate using USDC for large international payment flows. Exploring the application of Circle's Layer-1 blockchain Arc in future payment scenarios. # BVNK Partnership: Launched stablecoin payment integration (June 2025) Flow of funds: Merchants deposit stablecoins → BVNK automatically converts to USD → LianLian completes transfers through its global network. # RD Technologies (RD Coin Technology): HKDR Stablecoin Established a partnership with RD Technologies, which plans to issue HKDR (HKD-pegged stablecoin) on Ethereum. LianLian uses RD Technologies' RD ezLink enterprise identity verification and RD Wallet payment tools, while also collaborating with HashKey Exchange and Cobo.

HKDR is still in the sandbox/testing phase. This partnership cannot be fully implemented until RD Technologies obtains the official stablecoin issuer license from HKMA (expected in March 2026). # DFX Labs: Virtual asset trading platform (wholly owned subsidiary of LianLian listed in Hong Kong) Main business includes:

• Cryptocurrency trading: buying and selling btc-42">Bitcoin and other cryptocurrencies

• Wallet services: virtual asset custody/storage

• Liquidity services

• DFX Labs has obtained the VATP license issued by the Hong Kong SFC (Type 1 - securities trading + Type 7 - automated trading), with the condition that it must complete SFC on-site inspection rectification and pass independent penetration testing before full operation.

RD Technologies Founded by a former HKMA president, core competitive advantages include:

• Regulatory background: former HKMA president serves as chairman, first batch of sandbox participants

• Dual licenses: SVF (fiat payment) + stablecoin sandbox

Core business: Payments (OristaPay) + Stablecoin Issuance (RD InnoTech)

• Operates under the SVF license (SVF0016) issued by HKMA in December 2022.

• Multi-currency e-wallet supporting 8 currencies for enterprise payments and exchange rate management.

• Transfer methods: FPS (Fast Payment System), CHATS, wire transfer (TT)

Two independent business lines:

1. OristaPay: Based on fiat B2B cross-border payments and wallet services, positioned as a "next-generation payment infrastructure provider."

2. RD InnoTech Limited: Focused on stablecoin issuance (HKDR) and blockchain/Web3 business.

# OristaPay (RD Wallet) OristaPay has launched the Global Collection product, supporting cross-border payments in fiat and stablecoins, with 24/7 liquidity, particularly deep in African and Latin American markets.

• Supports receiving payments in over 100 currencies, covering 200+ countries and regions.

• Accepts mainstream stablecoins, with rapid settlement capabilities, conducting real-time AML and KYT compliance screening.

• Specific fees for Global Collection have not been publicly disclosed.

RD InnoTech Stablecoin Issuance --- HKDR RD InnoTech was selected as one of the first members of the HKMA stablecoin issuer sandbox, along with Standard Chartered/Animoca/HKT (HKDG) and JD CoinLink (JD-HKD).

Stablecoin regulatory timeline:

• December 2022: HKMA issued SVF license (SVF0016)

• July 2024: Selected for HKMA stablecoin issuer sandbox (first batch)

• August 2025: Hong Kong's "Stablecoin Regulation" officially takes effect

• September 2025: Brand restructuring, OristaPay and RD InnoTech split independently

• January 2026: OristaPay Global Collection officially launched and supports stablecoins

# Important Partnerships ZA Global co-led RD Technologies' $40 million Series A2 financing. Signed an MOU with ZA Bank:

• Reserve custody: ZA Bank provides custody services for HKDR reserve assets.

• Distribution: ZA Bank explores becoming a sales/distribution partner for HKDR.

Other partners: Allinpay International, Ripple, Circle Payment Network (CPN).

IV. Appendix: Comparison Analysis of Fees and Settlement Speeds of Cross-Border Payment Companies

Fee Comparison: $100 remittance from overseas to mainland China (minimum fee) Scenario: Transferring $100 USD from overseas to a domestic bank account, with each step using the lowest available fee from each company.

Notes:

• XTransfer's 0.1% settlement fee requires a certain transaction volume; the standard fee is up to 0.4%.

• WorldFirst's $0 total fee is based on personal Alipay withdrawals; B2B bank withdrawals are 0.3% (B2C) or 0.4% (B2B).

• Yeepay's local payment method fees range from 0.6% to 1.6%, and the CNY settlement fee has not been publicly disclosed.

• LianLian's 0.3% settlement fee applies to high transaction volume users; the standard fee can be as high as 0.7%.

• RD Technologies has not disclosed fee and settlement speed information.

Fee Comparison: $100 remittance from overseas to mainland China (maximum fee)

Notes:

• Airwallex's SWIFT fee is a fixed $25 per transaction; at a $100 transfer amount, it accounts for 25%, which is relatively reasonable for larger transfers.

• Yeepay credit card acceptance: base rate 3.8% + $0.30 + 1% cross-border surcharge + 3% currency conversion fee, totaling $8.10 for a $100 transfer.

• LianLian Wish Payout fee cap is 0.75%; settlement fee can be as high as 0.7%.

• RD Technologies' TT wire transfer, including agent bank fees, is HKD 400 (approximately $51.28); does not provide domestic CNY settlement services.

Speed Comparison: Remittance from overseas to mainland China (fastest)

Speed Comparison: Remittance from overseas to mainland China (slowest)

Notes:

• XTransfer X2X requires both parties to be users of the XTransfer platform.

• WorldFirst's 1-minute Alipay settlement is for personal Alipay accounts, not corporate bank accounts.

• Yeepay's fastest transfer is subject to T+1 to T+2 CNY settlement timing.

• RD Technologies does not provide domestic CNY settlement services; timing only applies to local Hong Kong.

• The bottleneck for the slowest path for all companies lies in SWIFT, which adds an additional waiting time of 1-7 days before currency exchange/settlement.

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