Stablecoins are gaining ground in the remittance market, cutting costs and displacing giants like Western Union and MoneyGram. Experts discuss how this technology is transforming the way we send money globally.
Matthew Sigel, head of research at VanEck, recently spoke about how stablecoins have been gaining market share in remittances, in the face of giants like Western Union and MoneyGram, which have seen their dominance in this sector decline over the past 4 years.
I agree with you data As Sigel shares from his official X account, Western Union and MoneyGram are facing a drastic drop in app downloads, while stablecoins are gaining popularity in the remittance market. One of the reasons behind this shift, according to Sigel and other experts, is the impact of stablecoins on the future of global transfers.
Stablecoins, such as USDC and USDT, have been revolutionizing the remittance market by offering Faster, safer and cheaper transactions for users. This change has not only impacted the crypto industry, with the growth of the stablecoin market, but it is also empowering millions of people who depend on remittances.
Stablecoins reduce costs and facilitate transactions
One of the main attractions of stablecoins is their ability to reduce the costs associated with remittances. According to a report by Bradesco, the average cost of sending $300 from Houston to Mexico has decreased from $10,50 in 2013 to $5,93 in 2025, thanks to digitalization and the adoption of stablecoins.
Stablecoins remove middlemen and allow for direct transactions between users, reducing fees and speeding up transfer times. Additionally, their global nature makes them ideal for sending money across borders without the restrictions of traditional banking systems.
VanEck economist Natalia Gurushina stressed that these savings have been crucial in economies like Mexico, emphasizing that stablecoin transfers between the United States and this country could multiply by five, going from $80 million to $400 million dollars per month in the coming years.
Monthly stablecoin volumes hit FedWire levels
Sigel shared recent data on monthly stablecoin transaction volumes to contextualize the growth this cryptocurrency sector has gained in recent years. He highlighted that stablecoins have already have reached FedWire levels, the US Federal Reserve's transfer system. This shows that stablecoins are gaining ground not only as investment tools, but also as means of payment and value transfer.
Sigel further emphasized that the recent growth of stablecoins in the remittance market marks just the beginning of a process. He believes the opportunity appears to be in its early stages, given the logic of the use case for these cryptocurrencies and the potential for comprehensive legislation on these assets to be passed in the United States this year.
The above, together with the growing confidence of users in stablecoins as practical and reliable tools, could further accelerate the growth of this market, which exceeds a Market capitalization of $213.000 billion, at the time of writing this article. Part of the confidence that crypto users have in stablecoins is that, unlike other cryptocurrencies, these coins are backed by stable assets, such as the US dollar, which reduces their volatility and makes them more attractive for everyday use.
VanEck's predictions for stablecoins in 2025
VanEck, one of the world's most renowned investment firms, has also shared its predictions for 2025, and stablecoins take center stage. According to the firm, Daily stablecoin settlement volumes to hit $300.000 billion, which would represent a significant increase compared to the $100.000 billion recorded in November 2024.
VanEck also predicts that the remittance market will explode this year thanks to stablecoins. Transfers between the United States and Mexico, for example, could increase fivefold, driven by speed, cost savings and growing user confidence.
VanEck also noted in its report that “Stablecoins are the Trojan horse of blockchain adoption”, indicating that despite all the debate about the adoption of new technologies and cryptocurrencies, stablecoins are proving to be a practical and accessible tool for millions of people around the world.
Source: VanEck
In conclusion, the rise of stablecoins is transforming the remittance market and challenging traditional giants such as Western Union and MoneyGram. With their ability to reduce costs, speed up transactions and offer a global and decentralized alternative, stablecoins are rapidly gaining ground in this market globally.
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