Stablecoin Payments Are Fast, but Local-Currency Settlement Remains a Bottleneck, Says Gravity Team CEO

Gravity Team CEO Mārtiņš Beņķītis told crypto.news that stablecoins enable cross‑border transfers in seconds, but the conversion to local fiat remains a slower, fragmented step. The firm launched an institutional over‑the‑counter (OTC) desk that provides same‑day fiat settlement in more than 20 currencies.

Liquidity Challenges Across Trading and Payments

Beņķītis highlighted that stablecoin balances serve two distinct roles. Market makers hold stablecoins to quote buy and sell prices and manage inventory across exchanges, while payment providers use stablecoins to fund conversions before releasing local currency to recipients. This dual use creates a liquidity story, as the same tokens must support both trading inventory and payment settlement.

Conversion Remains the Bottleneck

The payment process involves two stages: an on‑chain token transfer and a subsequent conversion into a spendable local currency. While on‑chain success rates exceed 99.9 % in the corridors Gravity Team monitors, the local conversion step can delay or return 3 %–7 % of inbound wires in Southeast Asian and Latin American markets. The company currently supports settlement for the Philippine peso, Indonesian rupiah, Mexican peso, Brazilian real, euro, British pound, and U.S. dollar, with plans to add the Vietnamese dong.

Cost Comparison With Traditional Banking

Gravity Team estimates stablecoin settlement costs of 0.1 %–0.4 % of the principal, versus 3 %–11 % for correspondent banking when foreign‑exchange spreads, intermediary fees, and pre‑funded capital are included. The firm notes that traditional settlement can tie up 20 %–40 % of monthly payment flows in pre‑funded accounts.

Industry Moves Toward Stablecoin Infrastructure

Large payment processors are expanding into stablecoin services. Stripe acquired Bridge, a platform for receiving, storing, converting, issuing, and spending stablecoins. Mastercard completed its acquisition of BVNK, a technology provider linking fiat and stablecoin rails.

Gravity Team’s Institutional OTC Desk

Launched on August 24, the OTC desk acts as the principal counter‑party for transactions within agreed size, price, and volatility limits. It offers stablecoin settlement in under 60 seconds and same‑day fiat settlement where local banking conditions permit. The service targets payment providers, fintech firms, brokers, and institutions moving funds into emerging economies, and includes request‑for‑quote execution and credit lines subject to counterparty terms.

Emerging‑Market Growth

Chainalysis reported that Asia‑Pacific crypto volume grew 69 % to $2.36 trillion and Latin American activity rose 63 % in the 12 months ending June 2025, underscoring the importance of efficient cross‑border payment solutions in these regions.