Blockchain technology has rapidly matured into a vital component of global finance, with cross-border payments emerging as one of its cornerstone applications, according to a new report by CoinLaw.

The study found that blockchain-based cross-border payments have grown at an annual rate of 45% over the past decade and are projected to reach $3 trillion in 2025.

Blockchain Cuts Costs, Accelerates Payments

The average transaction fees on blockchain networks have decreased by 70%–80% compared to traditional payment channels, while processing times have shrunk to just 3–10 seconds, as opposed to the 2–5 days typical of legacy systems. RippleNet alone currently handles over $15 billion in cross-border transfers each month.

Additionally, over 120 countries are actively developing central bank digital currencies (CBDCs) to streamline international transactions. CoinLaw also found that nearly 40% of global remittance firms now utilize blockchain solutions. Notably, Africa is experiencing a 60% increase in adoption due to a rising demand for affordable and efficient remittance methods.

The study also revealed that approximately 85% of US banks are either piloting or fully integrating blockchain-based solutions into their payment frameworks. The Asia-Pacific region leads worldwide in this area, with 60% of financial institutions employing blockchain, followed by 55% in North America and 50% in Europe.

Visa and Mastercard have reportedly processed over $5 billion in cryptocurrency transactions this year through partnerships with blockchain startups. The report highlights that blockchain-based cross-border payments have grown at an annual rate of 45%, with predictions to total $3 trillion by 2025.

Insurance companies have ramped up blockchain usage to 35% for faster claims processing, an increase from 18% in 2022. Furthermore, banks are saving up to 35% on operational costs by cutting out intermediaries and combatting fraud, resulting in an average transaction speed decrease to 10 minutes, down from over 10 minutes five years ago.

Inflation Drives Massive Crypto Adoption

El Salvador has seen approximately 35% of its population utilizing crypto wallets since Bitcoin became legal tender. Nigeria dominates Africa’s peer-to-peer trading landscape, commanding 45% of the continent’s total crypto transactions.

Meanwhile, Argentina and Turkey have experienced a 60% rise in adoption this year due to ongoing inflation and currency instability.