Late last year, global money movement company TerraPay announced the launch of stablecoin-native flows in partnership with a regulated infrastructure provider.
TerraPay’s first implementation of stablecoins started in 2024 in what it describes as a ‘stablecoin sandwich’ – converting fiat or government-issued currency to stablecoins for the cross-border leg before converting back to local currency – to benchmark settlement times and FX pricing against traditional rails.
This partnership enables TerraPay’s clients to fund directly in stablecoins and payout partners to receive them where supported, in regions where stablecoins are allowed by regulators. The shift is already delivering treasury benefits and helped reduce prefunding requirements.
Sanjeev Gupta, Head of Treasury at TerraPay explains that enabling clients to fund and pay out partners in stablecoins delivers speed, cost efficiency and flexibility. This has reduced transit time, thereby releasing pressure on working capital.
Faster settlement also lowers prefunding requirements, minimises credit risk and provides partners with greater flexibility in regions where stablecoins are permitted.
Stablecoins have transformed TerraPay’s treasury operations by optimising working capital and reducing cost of funds. Faster settlement cycles mean less capital is locked in transit, freeing liquidity for other uses and reducing reliance on external financing. This efficiency gain lowers overall financing costs and enhances FX management through instant access to local currency liquidity via stablecoin partners.
“Additionally, the ability to fund and settle in stablecoins reduces operational complexity and prefunding pressure across multiple corridors, making treasury more agile and responsive,” says Gupta, who adds that the process of integrating stablecoin flows into the business was a strategic, phased effort spanning approximately 12 months.
“We partnered with regulated infrastructure providers to ensure compliance and security, avoiding the need to build in-house blockchain infrastructure,” he explains. “The process included setting up custody arrangements, liquidity management and wallet infrastructure, as well as aligning with regulatory requirements across multiple jurisdictions.”
While the technical integration was streamlined through plug-and-play solutions, significant work went into governance, risk controls and operational readiness to scale adoption globally.
For payout partners, the advantage is not just speed but also reduced volatility and prefunding pressure. Even if adoption starts small, every new corridor or partner amplifies the efficiency gains across TerraPay’s global network.
According to Ambar Sur, Founder & CEO of TerraPay, stablecoin-native flows are a natural next step that support the company’s efforts to bring more speed, efficiency and flexibility to its global payments network. Partnering with a regulated infrastructure layer ensures this is done securely and compliantly.
The move to stablecoin-native operations can be seen as something of a turning point for the industry as it shows that stablecoins are not just experimental rails anymore – they are becoming core treasury infrastructure for global payment service providers.
