Zelle Payment Network Integrates Stablecoins for Cross-Border Transfers

Zelle integrates stablecoins for cross-border transfers.

Early Warning Services, the operator of the digital payment network Zelle, has launched an initiative to integrate stablecoins for international transfers.

Zelle’s operator is a joint venture of American banks including Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo.

According to a press release, the platform processed transactions worth approximately $1 trillion in 2024.

“Zelle has transformed how Americans send money domestically. Now we are working to provide users with the same level of speed and reliability for transfers to and from the U.S., leveraging our market experience,” said Cameron Fowler of Early Warning Services.

The initiative aims to build on the network’s success in the United States and support global expansion. The company hopes to address “one of the most pressing issues” in international transfers: safe and convenient cross-border money sending, through the use of stablecoins.

The banks owning Early Warning Services have approved the project.

In September, media reported that Zelle’s operator plans to explore issuing its own stablecoin, a path taken by competitors like PayPal. The market capitalization of the PYUSD, introduced in August 2023, has already reached $2.7 billion.

The total market value of stablecoins has exceeded $300 billion. Leading the market is USDT from Tether, with nearly $183 billion, followed by USDC from Circle at $76.3 billion.

Patrick Collison, co-founder and CEO of the payment company Stripe, explained the growing popularity of fiat-pegged tokens by citing faster, cheaper, and more reliable transactions compared to traditional systems.

This year, the fintech firm acquired the stablecoin platform Bridge for $1.1 billion and the infrastructure developer of Web3 wallets, Privy.

In May, Stripe introduced the Stablecoin Financial Accounts product, utilizing dollar-based stablecoins.

Earlier, Tether CEO Paolo Ardoino confirmed that the company will enter the U.S. market in December with a specially created regulated stablecoin, USAT.