Stablecoin FX nears ‘institutional-grade’ parity with bank rails in LATAM and East Africa: report
A Borderless report finds stablecoin exchange rates in Latin America and East Africa are increasingly matching institutional-grade bank interbank rates.Summary
A new report from payment infrastructure provider Borderless reveals that stablecoin-based foreign exchange in Latin America and East Africa is rapidly reaching parity with traditional bank rails. Data from the first quarter of the year indicates that exchange rates for many blockchain-based currencies have narrowed to within 100 basis points of interbank rates, with some Brazilian markets achieving zero-basis-point execution costs typical of institutional finance. While market structure and competition are driving these improvements in liquidity and price discovery, the report notes that thinner markets in regions like Zambia and Malawi still face significant volatility, exposing underlying liquidity bottlenecks. Overall, the findings suggest that stablecoins are evolving into practical, enterprise-grade payment infrastructure.
(Source：The Block)