Asia leads globally in fast, low-cost domestic digital payments, but cross-border transfers remain slow and expensive, according to a whitepaper by stablecoin infrastructure firm Saber. Despite instant systems like PayNow in Singapore, InstaPay in the Philippines, and PromptPay in Thailand, sending $200 abroad still costs about 6% to 10% and can take days due to multiple correspondent banks.
Saber estimates that roughly $5 trillion sits idle in pre-funded correspondent accounts worldwide, tying up liquidity and contributing to delays and higher costs.
Stablecoins offer faster settlement, but face real-world hurdles
The report, titled “Stablecoin strategy for Asia 2026,” argues blockchain-based settlement can complete transactions in seconds and improve transparency across complex payment corridors. However, converting stablecoins into local currencies remains difficult due to fragmented regulations and uneven liquidity.
Asia operates under 48 different payment regulatory regimes, each with its own identity and travel rule standards. This stands in contrast to the European Union’s unified SEPA system. Saber says any viable cross-border network must coordinate compliance across jurisdictions rather than attempt to bypass them.
Liquidity is another constraint. Access to global stablecoin pools does not guarantee sufficient depth for currency pairs like the Philippine peso or Malaysian ringgit, particularly outside market hours. Saber frames liquidity as an operational requirement that must be actively managed, not assumed.
Pilot projects struggle to scale
Many regional initiatives fail to reach production scale. Saber points to underestimated complexities around identity verification, compliance controls, and liquidity coordination. These elements must function simultaneously for real-world payment flows, which often exposes weaknesses not seen in pilot stages.
To address this, the firm proposes an orchestration layer that can route transactions around banking downtime, coordinate liquidity sources, and resolve counterparty errors in real time. It links infrastructure readiness to regulatory licensing, continuous liquidity management, and system resilience under heavy usage.
Market growth highlights inefficiencies
The drag from idle capital comes as Asia-Pacific cross-border payment volumes are projected to grow from $12.8 trillion in 2024 to $23.8 trillion by 2032. The scale of this growth amplifies the cost of inefficiencies embedded in the current system.
Globally, the average cost of sending a $200 remittance was around 6.36% in late 2025. In South Asia, costs rose to 5.30% in the third quarter of 2025. Platforms that can consistently lower these fees stand to gain a competitive edge among traders and payment providers.
Competing models for the future of settlements
Large-scale public sector projects are also reshaping cross-border payments. Project Agorá, led by the Bank for International Settlements and several central banks, is testing tokenized central bank reserves and commercial bank deposits on shared platforms for wholesale settlement.
Meanwhile, Project mBridge—backed by China, Hong Kong, Thailand, the UAE, and Saudi Arabia—has reached a minimum viable stage and is already processing significant volumes, with China’s e-CNY as the dominant currency. These parallel efforts suggest the future may consist of multiple interoperable networks rather than a single global system.
Regulatory clarity improves, but fragmentation remains
Regulatory frameworks are gradually evolving. Hong Kong introduced a licensing regime for fiat-backed stablecoins in March 2026, setting capital and reserve requirements for issuers. Still, Asia’s regulatory patchwork means firms must adapt to each jurisdiction individually.
Dollar-backed stablecoins dominate usage
Stablecoins are increasingly used for remittances, business payments, and hedging currency risk in Southeast Asia. In markets like the Philippines and Indonesia, USD-pegged stablecoins such as USDT and USDC account for about 99% of usage, reflecting strong demand for dollar stability.
Local currency-backed stablecoins remain marginal, with less than 1% market share. Limited liquidity—especially outside trading hours—continues to hinder their adoption. As a result, current strategies are centered on USD-denominated liquidity, with careful attention to the reliability of on- and off-ramps to ensure uninterrupted settlement.
Saber’s role and footprint
Founded in 2024, Saber builds infrastructure linking stablecoin networks with local banking systems. The firm operates under more than ten regulatory licenses and has processed over $3 billion in cross-border payments across 40 countries. It is registered as a money services business in Canada and complies with KYC, AML, sanctions screening, and travel rule requirements.
Explore why regional regulation matters for stablecoins in Asia in this in-depth guide on cross-border payments.
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