Blockchain technology has rapidly matured into a key pillar of global finance, with cross-border payments emerging as one of its most cornerstone applications, according to a new report by CoinLaw.
The study found that blockchain-based cross-border payments have grown at an annual rate of 45% over the past decade and are projected to reach $3 trillion in 2025.
Blockchain Cuts Costs, Accelerates Payments
The average transaction fees on blockchain networks have fallen by 70%-80% compared to traditional payment channels, while processing times have shrunk to just 3-10 seconds, compared with the 2-5 days typical of legacy systems. RippleNet alone now processes more than $15 billion in cross-border transfers every month.
Meanwhile, over 120 countries are actively developing central bank digital currencies (CBDCs) to streamline international transactions. CoinLaw also found that nearly 40% of global remittance firms now rely on blockchain solutions. Interestingly, Africa is witnessing a 60% surge in adoption amid rising demand for affordable, efficient remittance infrastructure.
The study also found that around 85% of US banks are either piloting or fully integrating blockchain-based solutions into their payment systems. The Asia-Pacific region leads globally in this aspect, with 60% of financial institutions using blockchain, followed by 55% in North America and 50% in Europe.
Visa and Mastercard have reportedly processed over $5 billion in cryptocurrency transactions this year through partnerships with blockchain startups. The report also noted that blockchain-based cross-border payments have expanded at an annual rate of 45% and are projected to reach $3 trillion in 2025.
Insurance companies have increased blockchain usage to 35% for faster claims processing, up from 18% in 2022. Additionally, banks are saving up to 35% on operational costs by eliminating intermediaries and reducing fraud, and the average transaction speed is down to 10 minutes from over 10 minutes five years ago.
Inflation Drives Massive Crypto Adoption
El Salvador has seen about 35% of its population using crypto wallets since Bitcoin became legal tender. Nigeria leads Africa’s peer-to-peer trading activity, as it accounts for 45% of the continent’s total crypto transactions.
Meanwhile, Argentina and Turkey have recorded a 60% surge in adoption this year as a result of persistent inflation and currency instability.
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