Zelle’s Stablecoin Move Positions Big Banks For Cross-Border Payments Race

• Zelle plans to leverage stablecoins to enable faster cross-border payments.
• CEO Cameron Fowler credited the move to legislation backed by the Trump administration that aims to integrate stablecoins into the regulated financial system.
• Early Warning Services plans to make the offering available to all Zelle Network financial institutions under equal terms.

Early Warning Services, the company behind the payments network Zelle, announced on Friday that it plans on using stablecoins to enable faster, more reliable cross-border money transfers.

Early Warning Services is owned by some of the biggest banks on Wall Street, which include JPMorgan Chase (JPM), and Wells Fargo (WFC). The move could expand Zelle beyond its U.S.-based network, where it already facilitates instant payments.

CEO Cameron Fowler credited the move to legislation backed by the Trump administration that aims to integrate stablecoins into the regulated financial system.

“With improved regulatory clarity, we can focus on what we do best: driving innovation to market.” 

– Cameron Fowler, CEO, Early Warning Services

Why Is Zelle Venturing Into Stablecoins?

Early Warning Services said its new initiative is designed to address the challenge of “sending money safely and conveniently across borders.”

By leveraging stablecoins, the company said it aims to maintain the same trust, speed, and convenience it already offers its customers while reducing the delays and fees traditionally associated with international transfers.

Early Warning Services plans to make the offering available to all Zelle Network financial institutions under equal terms.

The Cross-Border Payments Race

Earlier on Friday, Zepz, the global payments group behind WorldRemit and Sendwave, announced that it was launching a crypto wallet called the ‘Sendwave Wallet’. The new product is meant to be a globally accessible, stablecoin-backed, peer-to-peer cross-border money solution. 

Zepz joins a growing list of traditional remittance firms moving into stablecoin-based payments. MoneyGram set the pace in 2024 with the launch of its MoneyGram Wallet, allowing users to buy, hold, and send Circle’s USD Coin (USDC) on the Stellar (XLM) network.

Western Union also announced in August that it was developing a stablecoin strategy, while Remitly announced plans to launch a USDC wallet through a partnership with Bridge and Circle. 

The dollar-backed stablecoin landscape is currently dominated by two players, Tether’s USDT (USDT) and the USD Coin. USDT remains the largest stablecoin, with a market capitalization of $182.79 billion, according to DefiLlama. By comparison, USDC’s market cap is roughly $76 billion. On Stocktwits, retail sentiment around USDT stayed in ‘bearish’ territory over the past day, while sentiment for USDC fell from ‘neutral’ to ‘bearish.’

Read also: BTC Price Climbs As Investors Await CPI, Trade Talks Between Trump And Xi

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