Accelerating finance with stablecoins

The following is by Mesh Head of Legal, Steve Aquino
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Here’s a bold prediction about stablecoins: As the technology continues to develop, they will become the money layer of the Internet. Why? One word: speed.
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Stablecoins will eliminate common hurdles present in legacy finance that, once removed, will allow capital to move instantly and with significantly less friction.
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In this article, I explore how stablecoins are unlocking faster, more efficient capital flows.

Capital flows today are fraught with friction

Compared to the speed at which we can transmit data, legacy capital flows are painfully slow. They’re also costly, thanks to the middle-actors who charge tolls to use their rails.

The familiar flow of funds is filled with friction, which is due to a number of factors:

• Centralization: Current rails like ACH, Fedwire, FedNow, FPS, and SPEI run on centralized networks available only to certain participants.
• Limited reach: Payment flows are hamstrung (or simply unavailable) if the sender or receiver is located in a jurisdiction without access to legacy networks.
• Slow speeds: Transfers on common rails can take up to five days or more to clear.
• Cut-off times: Prominent rails like ACH and Fedwire are subject to time limits. Miss the cut-off and your transfer has to wait at least another day.
• Intermediaries: The current system of cross-border transfers and settlement relies on a network of correspondent banks, each of which charge a fee.
• “Dumb” transactions: In legacy payment systems, transactions are often “dumb”—the system doesn’t know when conditions like receiving goods or payments have been met. It’s up to the sender to track those events and manually release the funds.
• Compliance headaches: Transactions can be subject to AML, CTF, and sanctions reviews, slowing down transfer time.

How stablecoins remove the drag

Stablecoins offer a faster, smarter alternative to legacy payment rails, solving key inefficiencies at the core of today's system:

• Programmability: Smart contracts automate settlement based on conditions like FX rates, third-party payments, or document delivery.
• Reach: Anyone with an internet connection can send or receive funds globally.
• Availability: Stablecoins run on always-on networks, not tied to banking hours, ACH cutoffs, or holidays.
• Direct access: Payments move wallet-to-wallet with no intermediaries, delays, or added fees.
• Streamlined compliance: On-chain data and programmable rules enable fast transfers with built-in compliance.

Final thoughts

An open, protocol-driven financial system that’s powered by stablecoins will generate faster, more efficient capital transfers. By eliminating intermediaries, reducing settlement times, and enabling 24/7 global access, stablecoins speed up the movement of money at scale.

This is what faster finance looks like.

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