Borderless Payments: How Crypto Payments Are Reshaping the Global Financial System
March 07, 2025
On February 19 2025, Cobo, in collaboration with Stables Labs, successfully hosted the event Borderless Payments: Global Reach during Consensus Hong Kong 2025. This exclusive gathering brought together industry leaders from HashKey OTC, Agora, SMARTS, TruBit, AEON Protocol, Infini, and Plume to explore the transformative role of stablecoins and cross-border payments in the evolving financial landscape.
The Rise of Crypto Payments: Opportunities and Challenges
As crypto payments continue to gain mainstream acceptance, businesses are presented with unprecedented opportunities—alongside new regulatory and operational challenges.
This article presents key insights from the discussion, offering valuable perspectives for enterprises navigating the future of crypto-powered global transactions.
Cobo’s One-Stop Stablecoin Payment Solution
Stablecoin-based transactions enhance speed, reduce costs, and improve liquidity efficiency. However, widespread adoption is hindered by complex transaction workflows, regulatory discrepancies across jurisdictions, and limited institutional acceptance.
To mitigate these challenges, Alex Zuo, VP at Cobo introduced Cobo’s all-in-one stablecoin cross-border payment solution and framework, designed to streamline adoption for traditional payment businesses.
The "Sandwich" Model: A Holistic Approach
The sandwich framework Zuo introduced optimizes three critical layers:
Acquisition Layer:
Provides dedicated wallet addresses for enterprises
Integrates on-chain KYC/AML verification to ensure compliance
Clearing Layer:
Supports cross-chain currency swaps, multi-asset conversions, and liquidity management solutions
Settlement Layer:
Enables fiat on/off-ramping through regulated OTC channels
Offers Visa card integration with USDT balances for seamless global transactions
Ensuring Compliance and Risk ManagementRecognizing the critical role of regulatory compliance, Cobo has established partnerships with CipherOwl and leading risk management firms to provide:
On-chain KYT/AML transaction monitoring
Direct integration with global fiat on/off-ramp networks, including HashKey OTC, RD, Legend Trading, TruBit, and Flutterwave
By embedding compliance-first protocols, Cobo ensures that businesses can scale their cross-border payment operations securely and efficiently.
AI, Blockchain, and Stablecoins: The Next Evolution of Global Finance
Flex Yang, Founder of Stables Labs, predicts that AI, blockchain, and decentralized payment systems will collectively reshape the global financial infrastructure. Stablecoins, he argues, will evolve beyond a digital dollar substitute to become a fundamental bridge between traditional finance (CeFi) and decentralized finance (DeFi).
Stablecoins are already establishing themselves as core financial infrastructure worldwide. With traditional cross-border settlement systems like SWIFT being influenced by geopolitical factors, enterprises are increasingly seeking alternative payment rails that offer efficiency, neutrality, and global accessibility.
"As AI-driven finance replaces manual fund management, capital flow dynamics will be permanently transformed. DeFi will integrate into mainstream finance, with stablecoins as its backbone.” – Flex Yang, Founder, Stables Labs
AI-Powered Financial Automation
AI-driven smart wallets are set to revolutionize capital management by:
Automating DeFi strategies for optimized yield generation
Managing real-time liquidity allocations with minimal human intervention
Executing AI-based arbitrage strategies across global financial networks
Stables Labs’ Next-Generation Stablecoin Initiatives
Stables Labs is actively developing hybrid stablecoin solutions that integrate seamlessly with both CeFi and DeFi ecosystems:
USDx Stablecoin: A risk-free arbitrage model, allowing businesses to access both DeFi yields and CeFi’s stable annualized returns.
T-Bill Reserve Stablecoin: A stablecoin backed by U.S. Treasury Bills, ensuring predictable yield performance while maintaining high liquidity and security.
Stablecoins as the Future of Cross-Border Payments
Stablecoins are fast becoming the preferred cross-border payment mechanism. With institutional demand accelerating, stablecoins are poised to challenge and potentially replace traditional banking payment infrastructures.
At the "Opportunities and Challenges of Crypto Cross-Border Payments" panel, Ryan, CTO of Infini, likened crypto payments to a "blockchain-powered money market fund", highlighting their yield-generating capabilities.
Maggie Wu, CEO of TruBit, examined the practical challenges of stablecoin adoption in Latin America. Due to legacy banking inefficiencies, cross-border transactions can take 3-7 days with fees as high as 2-3%.
"By leveraging stablecoins, enterprises can complete payments and settlements within minutes—at a fraction of the cost." – Maggie Wu, CEO, Trubit
TruBit’s API-driven banking integration facilitates real-time conversion between fiat and stablecoins, enabling rapid multi-currency settlements at costs below 1%.
Regulatory Compliance as a Key Differentiator
Jane Zhang from HashKey OTC emphasized that compliance is the determining factor for large-scale stablecoin adoption. In highly regulated markets like Singapore, stablecoin transactions must comply with:
KYC (Know Your Customer)
KYB (Know Your Business)
KYT (Know Your Transaction)
"Stablecoin payments will soon be the de facto standard for global B2B trade, accelerating enterprise digitalization.” – Jane Zhang, HashKey OTC
How Stablecoins Are Transforming Global Capital Efficiency
As regulatory clarity improves, stablecoins are shifting from a niche payment tool to core financial infrastructure. Moving forward, enterprises that adopt compliant stablecoin frameworks will hold a significant competitive edge.
At the From Payments to Yield: How Stablecoins Reshape Global Capital Efficiency panel, Flex outlined three key yield-generating layers within stablecoin-based financial models:
Base Yield Layer: Users earn market-rate returns through zero-fee stablecoin acquisitions.
Credit Utilization Layer: Businesses leverage stablecoin reserves for credit lines, lending, and investment diversification.
Structured Yield Layer: Institutions gain access to advanced structured financial products, delivering enhanced ROI within stablecoin ecosystems.
"Just as the U.S. dollar once replaced gold as the global standard, stablecoins could become the next dominant financial instrument." – Flex Yang, Founder, Stables Labs
Nick van Eck, CEO of Agora, envisions stablecoins as a core component of corporate treasury management, predicting market expansion beyond the current $200 billion stablecoin economy to trillions of dollars in assets under management.
The Future of AI, Blockchain, and Stablecoins
The intersection of AI, blockchain, and stablecoin finance will drive the next wave of automated capital management.
"AI agents will soon autonomously manage digital assets, optimizing stablecoin allocations and maximizing returns—all without human oversight.” – Nick van Eck, CEO, Agora
Shaping the Future of Global Payments: Cobo’s Vision
The digital financial landscape is undergoing a seismic shift, with stablecoins and crypto payments emerging as the next frontier of cross-border transactions. As traditional financial systems face increasing friction—from regulatory fragmentation to rising transaction costs—businesses require agile, secure, and scalable alternatives.
At Cobo, we believe the future of payments is borderless, instantaneous, and programmable. Our comprehensive stablecoin cross-border payment infrastructure is designed to empower enterprises with full-stack financial capabilities, offering:
Seamless global transactions that bypass the inefficiencies of traditional banking rails
Built-in regulatory compliance to navigate an evolving legal landscape
Future-proof infrastructure that integrates effortlessly with both legacy finance (CeFi) and decentralized finance (DeFi)
As the world moves towards a tokenized economy, the enterprises that adapt today will define the next era of financial innovation. The question is no longer if crypto payments will become mainstream—but how fast businesses can leverage them for a competitive advantage.
Cobo is here to accelerate that transition.
Are you ready to future-proof your payment strategy? Book a demo today.
