Zelle intends to use stablecoins to build its $1T payments network beyond the US. This effort intends to make cross-border money transactions faster, cheaper, and more reliable by utilizing blockchain-based stablecoin technology.
Cameron Fowler, CEO of EWS, the company behind Zelle, highlighted building on its domestic success to increase worldwide payment speed and confidence.
Though many were pleased by the announcement, critical elements remain unclear. The public still doesn't know whether a uniform stablecoin will be produced or if individual banks will issue their own. It is also unknown if overseas financial partners will take part in the expansion. The launch date has also not been given.
Skeptics fear that coordinating thousands of banks with varying compliance and risk standards could slow progress. They cite previous failures, such as Fnality, a bank consortium project launched in 2019 to modernize cross-border fiat settlements that has yet to gain widespread use.
Zelle's distinct edge stems from its existing scale, with millions of US users and a $1T payment volume, dwarfing many fintech competitors. If successful, Zelle has the potential to create a new benchmark for stablecoin usage in legacy banking, as well as stimulate broader institutional blockchain adoption.
