The current infrastructure of correspondent bank networks, where over $150 trillion is moved annually, takes two to five days to process a payment transaction.
Moreover, assets are not only withdrawn from circulation for two to five days but also temporarily frozen in correspondent bank accounts until they receive counterclaims.
KPMG experts suggested that blockchain-based stablecoin payment solutions could significantly reduce settlement times from days to minutes or even seconds, depending on the blockchain network used.
"The use of stablecoins as a settlement instrument is perhaps one of the most obvious and immediate scenarios for transforming cross-border payments. They will reduce pre-funding requirements and capital pressures, improve overall liquidity, and free up resources that would otherwise be locked up in unused accounts," the authors of the KPMG report stated. KPMG noted that the experience of companies like JPMorgan and PayPal with stablecoin payments demonstrates that blockchain-based payments enable real-time auditing, eliminate intermediaries, and reduce payment transaction costs by 99%.
Earlier, Jamie Dimon, CEO of the American investment bank JPMorgan Chase, stated in an interview with CNBC that he had significantly changed his position on stablecoins, acknowledging the benefits of blockchain and believing that this technology can simplify many business processes.