The fintech scene has high hopes for stablecoins. However, so far they've been primarily used as settlement currency in the crypto sector. But experts see another use case: stablecoins can facilitate transfers to other countries, which are often expensive and time-consuming through conventional payment channels. The Commerzbank startup incubator Neosfer is now presenting a functional prototype for cross-border account-to-account payments with stablecoins that can be used in online banking.

Users can send money from Germany to several Asian countries in any currency in less than five minutes. Payments via stablecoins don't rely on correspondent banks or other intermediaries, but run directly through the system: "This allows money to be sent to countries more cheaply and quickly, especially to those that have previously been poorly connected from Germany," says Lukas Kunert, Senior Manager at Neosfer. Together with his colleague Bala Nagaraj, he developed the system within six months.

The first successful test payment of the prototype named "deed" took place in August. The system has now been fully compliance-tested and, according to the developers, meets EU regulatory standards for KYC, AML and Travel Rule. The payment system can potentially be integrated into the interface of internet banking systems. Transactions are processed via Circle's EU-regulated stablecoins, using either Euro (EURC) or Dollar (USDC) depending on the most favorable exchange rate. Two payment fintechs are also involved in the project: DLT Finance handles the deposit and Tazapay handles the payout on-site. The prototype currently only operates in countries where Tazapay is active.

Affordable Alternative to Bank Transfers
Cross-border bank transfers, particularly outside the SEPA area, are still expensive and slow. Typically, it takes two to five business days for money to arrive in the recipient's account. First, the sender's bank must send a payment instruction via the SWIFT network. If the bank has no direct business relationship, which frequently occurs with Asian countries, one or even several so-called correspondent banks take over the order and check compliance issues, for example whether sanctions exist against the sender or recipient.
Because correspondent banks don't do this for free, costs arise for both senders and recipients. According to the World Bank, average costs for such transfers worldwide stood at almost 6.5 percent at the end of 2024. This is also because correspondent banks in destination countries calculate their own exchange rates and surcharges, which increases costs. During the transfer, senders also usually cannot track where the money is located and at what rates it's being exchanged.

The costs of stablecoin-based systems like Neosfer's are significantly lower according to the developers, because no intermediaries are necessary and the exchange takes place at actual exchange rates. "Our prototype proves that blockchain technology can be seamlessly integrated into existing banking processes," explains Kai Werner, Managing Director of Neosfer. Unlike conventional crypto transactions, senders and recipients in Neosfer's system don't need to open their own crypto wallet. Nevertheless, the system shouldn't be a black box for users. They can view exchange rates before payment and track the transaction status precisely: "We don't want to hide that the transaction is executed via stablecoin," says Bala Nagaraj.

Targeting High Earners from Abroad
As a developer who originally came to Germany from India, Nagaraj was himself frustrated by difficult transfers. Many people feel the same: the developers therefore see great potential especially for payments to India. According to the Institute for Employment Research, approximately 120,000 employees from India worked in Germany in 2022, many of them as specialists in the IT sector. According to a current analysis by the German Economic Institute (IW), employees from India are the top earners among foreign skilled workers with a gross median wage of almost 5,400 euros. According to Nagaraj, transfers abroad here amount to 6,000 to 10,000 euros per year.

Competition for Wise and Co.?
While there's also the option of exchanging money directly via crypto exchanges alongside classic bank transfers, this requires technical knowledge and, in the case of Coinbase, involves a fee of at least 0.5 percent plus a transaction fee. Besides that, there are alternative providers like Remitly, Currencyfair or Wise. With the latter, a transfer over 3,000 euros costs a fee of 1.43 percent, with Revolut including exchange rate losses almost 0.71 percent (as of January 8, 2026).

In the UK, according to the Financial Times, Wise currently charges a fee of 0.5 percent. However, Wise isn't convinced by the technology yet. But they're willing to use it, provided it makes transfers cheaper, Wise told the Financial Times. However, so far the costs for AML, KYC and other compliance regulations are similarly high as with transfers.

The developers at Neosfer expect, however, that costs will decrease as the systems scale. Should Neosfer's system actually enable lower prices, it would be a cheaper and faster alternative to transfers. When the system could launch and whether it will then be used at Commerzbank or other banks is not yet certain.