Global payments are foreign exchange flows at their core. Every international supplier payment, payout, or platform disbursement requires one currency to be converted into another. Traditional correspondent banking can take 2 to 5 business days to settle, route through multiple intermediaries, and incur total costs of 1.5 to 3% on average.
Stablecoins transform this: they enable real-time, 24/7 transfers with direct wallet-to-wallet movement. They can reduce reliance on correspondent banking intermediaries and realize near-instant settlement. Businesses gain instant visibility, stronger operating margins, and freed-up working capital.
The costs of traditional cross-border payments
On traditional banking rails, a German automotive parts manufacturer sending €100,000 to a supplier in Singapore may route the payment through:
- A Frankfurt bank
- A USD correspondent bank in New York
- A Singaporean receiving bank
These banks process the transfer sequentially, which means settlement often takes several business days and stays restricted to standard banking hours in each time zone. During this window, the manufacturer must often keep sufficient liquidity available and uncommitted until final confirmation arrives. This can temporarily tie up working capital, which means it is unable to be reinvested in inventory, production, payroll, or other operational needs.
At the same time, finance teams actively track the payment’s progress across multiple banks and jurisdictions. This process still involves manual reconciliation and communication between institutions across emails, phone calls, and spreadsheets. It also raises the likelihood of errors or disputes.
USD stablecoins speed up settlement but still depend on the dollar
Stablecoins deliver faster settlement than traditional banking. However, for European businesses, the benefits of using stablecoins for global payouts still rely heavily on US-based digital infrastructure.
When a German manufacturer pays a Singaporean supplier using a USD stablecoin, the payment still requires two currency conversions: EUR to USD and USD to SGD. If each conversion costs 1%, the total FX cost on a €100,000 payment could reach €2,000. That money is lost simply because the transaction passes through the dollar.
Even with pre-funded USD stablecoin balances on both sides, where both the German payer and the Singaporean supplier already hold USD stablecoins in digital wallets, the FX friction does not disappear. It is only deferred until the funding and off-ramping steps occur. In addition, many major USD stablecoins hold a large portion of their reserves in short-term US Treasury instruments. As a result, global users of USD stablecoins remain exposed to broader US monetary and financial market conditions.
The advantages of local stablecoins
A euro-denominated stablecoin can eliminate an unnecessary USD conversion step in many non-dollar trade flows. In the previously mentioned example, the German payer sends a euro-backed stablecoin directly. The Singaporean receiver then has the flexibility to hold the stablecoin or offramp to SGD. Local stablecoins can help reduce FX complexity and support greater monetary autonomy in digital payments.
Legal redemption at par
Under MiCAR, Electronic Money Tokens (EMTs) act as regulated digital tokens referencing a single official currency. Holders have a statutory right to redeem tokens at 1:1 value at any time. This right is defined by regulation, not issuer terms of service, giving businesses a direct legal claim on the underlying funds.
Segregated reserves and insolvency protection
MiCAR requires issuers to hold at least 30% of reserves in bank deposits, with the remainder in low-risk, highly liquid assets. Issuers must segregate these reserves from their own operational funds. This protects token holders in the event of insolvency and reduces exposure to issuer balance sheet risk.
Transparency and reduced FX exposure
On-chain transactions provide near real-time payment visibility for both parties, simplifying reconciliation and lowering administrative overhead. Using local stablecoins for non-US trade also avoids routing transactions through USD, eliminating the additional conversion step.
AllUnity’s role
AllUnity delivers regulated stablecoins that are fully backed 1:1 by fiat reserves and redeemable at par value at any time. As a BaFin-licensed e-money institute, AllUnity operates under strict European regulatory standards.
Its stablecoins qualify as Electronic Money Tokens (EMTs) under MiCAR, offering regulatory certainty and robust reserve backing.
AllUnity stablecoins power global payment flows for banks, corporates, fintechs, and market participants across real-world use cases.
As global trade shifts toward instant digital payments, Europe faces a strategic decision: develop independent stablecoin infrastructure or continue relying on USD-dominated payment systems.
This choice affects monetary autonomy, intermediary risks, and value retention within the EU.
B2B payments
Near-instant invoice settlement for European exporters and global suppliers. Funds transfer in seconds, removing multi-day delays, extra FX conversions, and correspondent fees.
Remittances
Fast, low-cost global disbursements to workers, freelancers, or aid recipients. Partner ecosystems provide broad reach while currency stability shields against local volatility.
Payroll
Real-time international payroll for distributed teams and contractors. Programmable features automate recurring payouts, reduce manual work, and ensure immediate fund access.
Commerce
Supports merchant acceptance for everyday retail purchases, micropayments, and programmable transactions. Works across multiple blockchains.
Reach out to explore how AllUnity stablecoins could integrate into your existing payment stack. We’d love to hear from you.
FAQ
What benefits do AllUnity stablecoins offer that solutions like SWIFT and SEPA don’t already solve?
SWIFT and SEPA operate with different technical and geographical constraints.
- Settlement Finality: SWIFT works through correspondent banks, leading to delays, additional currency conversions in cross-border flows, and reduced margins for businesses. AllUnity stablecoins provide near-instant finality on the blockchain.
- Global Reach: SEPA focuses on euro transfers within the European Economic Area. AllUnity stablecoins enable global transfers across multiple currencies without requiring the recipient to be in a specific banking zone or jurisdiction.
- Programmability: SWIFT and SEPA process payments through centralized networks where the money carries no embedded logic for automation. AllUnity stablecoins run on blockchain infrastructure, allowing integration with smart contracts to automate actions beyond simple transfers.
How do AllUnity’s stablecoins compare to the Digital Euro (CBDC)?
The Digital Euro is a retail central bank digital currency developed by the European Central Bank. It serves as a digital form of cash for everyday use within Europe, such as buying groceries, paying friends and family, or shopping online. Unlike a bank account, it has a holding limit. Current estimates set the cap at around €3,000 per person. The Digital Euro is not designed for global commerce or large-scale business transactions.
In contrast, AllUnity stablecoins serve a broader range of institutional and business needs. They have no holding limits and support applications from individual remittances to large-scale corporate treasury management. These tokens are borderless and programmable. This enables instant and automated settlements for retail point-of-sale payments as well as global supply-chain transactions.
How do you access AllUnity stablecoins?
You can access AllUnity stablecoins through distribution partners or directly via the AllUnity Mint Platform. The platform allows minting and redemption of stablecoins at 1:1 par value between traditional bank accounts and blockchain wallets, without requiring an API integration.
Legal Notice:
This marketing communication has not been reviewed or approved by any competent authority of an EU Member State. AllUnity GmbH bears sole responsibility for its content. This content is for marketing purposes only and does not constitute an offer or recommendation to purchase e-money tokens (EMTs). This communication is directed exclusively at legal entities and business customers (B2B only) and is not addressed to natural persons, retail customers or consumers.
A White Paper under Art. 51 MiCAR has been published, containing all material information, including the EMT holders’ redemption right.
The White Paper is available at: www.allunity.com/whitepaper
Redemption Right: Pursuant to Article 49 MiCAR, the holders of EMTs have a statutory right of redemption against AllUnity at any time and at par value.
Website: https://allunity.com/
Contact: support@allunity.com | +49 6934875407