Why stablecoins and liquidity on winning chain

Global trade is spreading rapidly as traditional payment systems remain outdated, expensive and slow. Both companies and individuals are fighting with high fees for transaction and long settlements, and some even have very limited access to banking systems.

People and companies rely on outdated and inefficient systems for transfer money across borders for decades before the cryptocurri, especially stabili. The main problems with traditional banking and financial services are disposal of payment, large fees and liquidity shortages.

Fortunately, Stablecoins and liquidity providers on the chain deal with problems offered by up-to-date, in real time and low-budget transactions.

Traditional payments are unsuccessful businesses

From a merchant in Africa to Freelancer in Southeast Asia to the company in Latin America, individuals and companies suffer from delay, high fees and liquidity issues in cross-border payments.

For example, using Swift, a global messaging network for financial transactions, faced strong criticism for its inefficiency in global payments. While 66% of fast transactions arrive Within 24 hours, one to three working days for funds that do not need manual certificates are transferred to them under normal conditions – some transactions could pick up Up to month if manual checks turn on.

Let us not forget the transaction fees that come with the use of the submit submission fees, benefit benefits, fee for intermediary banks, and sometimes foreign currency fees.

Some of the main reasons behind the inefficiency of Swift transactions are compliance checks, incorrect payment details and involvement of more intermediary banks, naming name.

Traditional Fintech is not enough

The rise of digital payment platforms such as wise, paypal and stripes has improved availability to many individuals and companies in developed countries, but still depend on traditional financial networks.

Problems with traditional pay systems come because demand is constantly increasing. Global cross-border settlements reached 190.1 trillion dollars in 2023. years, and the number is expected to be 2930. Year to cross $ 290 trillion. report Last August.

For each cross-border transaction to successfully reach the destination, it would have to go through several layers of processing and intermediaries – each layer adds fees and potential pay delays.

The job in Nigeria receiving payments from Europe, for example, could usually turn their funds repeatedly – from Euro to US dollars to Naira – before cashing the local bank. This will cost a job with additional fees.

This suggests the need for a payment system that eliminates these friction points. Both companies and individuals must access real-time transactions and liquidity. That’s why Stablecoins, like Tether (USDTT) and liquidity providers on the chain, like Mans, saw impressive growth in the last few years.

The right solution: stableCOINS and liquidity on the chain

Unlike the traditional banking system, StableCoins-cryptocurrency related to Fiat funds such as US dollars 24/7 without any intermediaries, and all the intermediaries, and thanks to the characteristics of the Blokchain technology-decentralization, immutability and transparency.

Stablecoins has seen outstanding growth in the last five years. For example, the USDT market capitalization jumped with $ 4.6 billion in March 2020. Up to $ 4 so far – Total Capit for SteadyCoin Market exceeded $ 230 billion. This development shows the strong usefulness of the asset class in facilitating effective transactions.

However, to make nominable transactions easier, Stablecoins needs liquidity. Digital payment infrastructure Builitors like mans develop solutions to allow fast and impeccable transactions around the world by providing liquidity to the chain. The key to enabling current and transparent transactions, without any third parties such as banks or payment networks, is using stablecoins and liquidity on the chain.

An example of Nigerian business would look different with stablecoins. The supplier from Nigeria can receive USD from the customer in Europe and immediately convert funds to local Naira using Mansa at liquidity pools in the chain. In this way, the owner of the company would not have to pay multilayer fees and reduce disposal transactions to a minimum.

Stablecoins and liquidity providers on the chain are already eliminating delays and transaction costs – the main issues that have not been able to achieve traditional finances.

Enough markets are the biggest winners

The real winners of the adoption of stablecoins are subject to regions like Africa and Latin America. Net CrueTo imports of Brazil reached $ 12.9 billion in the first nine months 2024. years, showing 60.7% increase from the year before before it was before report. Knight Stablecoins accounted for almost 70% of all crypto transactions in the country 2024. Years.

USDT’s growth and crypto-a-fiats in emerging markets is evidence that users prefer stable, chain payments in traditional banking rails.

Policy regulators and creators should review stablecoins and liquidity on the chain as a solution because they reduce systemic friction in payment, banks are subject and more efficient for remittances.

StableCoins and the future of global payments

Despite their growing adoption, Stablecoins and liquidity providers in the chain are not here to replace traditional financial institutions – they are here to improve them. The future of payment refers to flexibility, speed and accessibility.

Financial institutions, payment services and enterprises are already integrating stablecoins into their payment flows. Last year, wisely became The first page of the company for obtaining access to the Japanese Network for Cleaning the Bank, Zengin. This has enabled the company to significantly reduce the partition costs of the transaction by removing intermediary banks.

Weak of traditional finances in Stablecoins is not speculative – occurs now as demand for transparent, low-needed and seamless global transactions increases. Lifting liquidity on the chain would potentially refuse to reliance on outdated banking systems.

Mouloukou Sanoh

Mouloukou Sanoh is a serial entrepreneur and investor integrating Web3 innovations in emerging markets. He is a co-founder and CEO of Mansa, a provider of liquidity solutions for short-term claims and previously co-founded Cassava networks, a leading African website. Forbes 30 below 30 (2023) Nominee, and he also gave roles as an investment manager in Adversia and the founder of Capital Mansa, the counseling of African companies on collection and funds collection and strategy. With experience in private capital, banking and Web3, Mouloukou led the African initiatives to the Everest Group of Unterture and worked as an analyst of TMT research in China. He graduated in modern Chinese studies from the Chinese University of Hong Kong and studied at Beijing University. Its global perspective is shaped in time in China, Hong Kong, Guinea, Netherlands and Belgium.