Coinbase CEO Brian Armstrong has proposed stablecoins as a cheaper route for global remittances after estimating that users paid about $60 billion in transfer fees in 2025. In an April 27 post on X, Armstrong said stablecoins could bring that cost close to zero, placing digital dollars at the center of a growing debate over cross-border payments.
Global remittances reached an estimated $905 billion across 2024 and 2025, according to the figures cited in the report. These transfers support households that depend on money sent by relatives working abroad.
World Bank data showed that the global average remittance fee stood at 6.36% in the third quarter of 2025. Based on that rate, total remittance fees reached an estimated $57.55 billion last year.
The cost varies widely by service provider. Banks remained the most expensive channel, with an average fee of 14.99%, making them costly for many senders. Post offices charged an average fee of 5.58%, while money transfer operators charged 4.72%. Mobile operators also stood at 5.58%, placing them below banks but above some other options.
Credit and debit cards ranked among the cheaper methods in the figures provided. Cards charged 4.39% to originate remittances and 3.61% to receive them.
Armstrong argued that stablecoins could offer a lower-cost option for cross-border transfers. A stablecoin is a cryptocurrency designed to hold a steady value. Unlike Bitcoin or Ethereum, it usually tracks a stable asset such as the U.S. dollar.
USDT and USDC dominate the stablecoin market. DeFiLlama data in the report places the total stablecoin market cap at $320.45 billion at the time of writing.
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Tether’s USDT accounted for 59% of the market, while Circle’s USDC held 24%. Both tokens function as digital dollars because one token tracks one U.S. dollar. Stablecoins have gained attention in cross-border transfers because they move quickly and cost less than many traditional rails. They also operate on weekends and outside normal banking hours.
That structure matches the remittance alternative Armstrong promoted. It also fits Coinbase’s long-running link to USDC and the broader stablecoin market.
Coinbase and Circle co-founded the Centre Consortium in 2018 to launch USDC. The exchange also allows users to earn rewards by holding USDC on its platform. When Coinbase reported its 2025 earnings, it said stablecoin revenue reached $1.34 billion. The revenue came from USDC held across Coinbase products.
Armstrong has also pushed for the CLARITY Act to pass without changes that restrict stablecoin rewards. The banking industry has argued that such rewards threaten traditional savings accounts. Even so, stablecoin use in remittances still faces major barriers. Users need trusted wallets, regulated cash-in and cash-out channels, strong liquidity, fraud controls, and anti-money-laundering checks.
Recipients also need simple ways to convert digital dollars into local currency. Hidden spreads, extra platform fees, and weak payout networks can reduce the savings stablecoins promise.
McKinsey’s February report showed a gap between stablecoin activity and real payment use. The report said most activity involved trading, internal transfers, and automated blockchain movement.
McKinsey, working with Artemis Analytics, estimated actual stablecoin payments at about $390 billion annually. That figure represented only about 0.02% of global payments volume.
Coinbase CEO Brian Armstrong says stablecoins could reduce the high cost of global remittances after users paid billions in transfer fees. While USDC strengthens Coinbase’s stablecoin position, McKinsey data shows adoption still depends on payment access, liquidity, regulation, and easier cash-out options.