.png)
Editor’s note: This article was originally published in November 2024 and updated in July 2025 to reflect the latest developments in stablecoin usage and cross-border payment flows.
When it comes to sending money across borders, traditional methods often mean slow processing, high fees, and complicated banking rails.
But what if there were a smarter, faster way to address these issues and overcome them? Enter the Stablecoin Sandwich, an innovative approach to international payments that combines blockchain technology with stablecoins to transform how money moves across borders.
A Stablecoin Sandwich is a process that leverages blockchain technology and uses stablecoins as a middle layer for fiat-to-fiat cross-border transactions (e.g. EUR<>BRL). This approach streamlines international transfers, providing faster, secure and cost-efficient transactions by eliminating the slow and expensive parts of the correspondent banking system.
To better explain a Stablecoin Sandwich payment flow, let’s use an example where a business wants to issue a payout from France to Brazil:
The business sells their EUR for stablecoins such as USDC in France. Why France? Because they benefit from high local liquidity, ensuring they get a competitive EUR to USDC rate and avoid international banking fees.
Once the business has secured its stablecoins, they transfer them across borders using blockchain technology. This is where the magic happens: the blockchain eliminates the inefficiencies of traditional banking systems such as delays and high costs associated with the traditional banking system, speeding up the process to mere minutes.
Once stablecoins reach their country of destination - Brazil, they are sold for local currency using local liquidity (USDC to BRL). This step ensures the recipient enjoys competitive rates, avoiding the inefficiencies of traditional international transfers. The funds are immediately accessible to the Brazilian recipient.
The traditional banking system suffers from inefficiencies on cross-border payments due to how intermediated the correspondent banking system is. Here is an overview of Correspondent banking via SWIFT compared to a Stablecoin Sandwich for a typical EUR to BRL cross-border payment.
Unlike traditional transfers that can take several days due to bank processing times and intermediaries, stablecoin transactions are near instant and can be completed within minutes. This speed is a great advantage to businesses that want to avoid the wait times of traditional banking systems to send funds without delays.
On top of its efficiencies, the Stablecoin Sandwich is also scalable, making it an ideal solution for businesses looking to expand globally.
At Fipto, we simplify and amplify the benefits of the Stablecoin Sandwich by connecting our clients to an extensive network of on and off-ramping partners across 40 traditional currencies; and in full compliance. Clients always get the best rate for their cross-border payments.
Our solution is designed to allow businesses to manage their conversions to stablecoins or other currencies, enabling them to leverage the benefits of stablecoin speed without the complexity related to handling cryptocurrencies.
If you are a business looking to optimise international payments seeking cost-effective transfers, Fipto can help you set up the optimal Stablecoin Sandwich flows for your cross-border financial needs.
