Mastercard, Visa, and PayPal didn’t just move money during the early digital payments era. They owned the gateways, switches, and clearing systems that made it all work. That infrastructure ownership became their competitive differentiator, and it’s still delivering returns decades later.
Financial institutions now face similar infrastructure bets on blockchain technology, but the decisions carry higher stakes and longer-lasting consequences.
Infrastructure’s Enduring Role
Stablecoin networks already process US$24 trillion annually, reshaping treasury operations, corporate payments, and cross-border settlements. However, most businesses hesitate when facing the prospect of crypto wallets, gas fees, and digital asset regulations. What they want from any innovative solutions is speed and efficiency wrapped in payment interfaces they already know.
Banks pursuing stablecoin strategies are taking three main approaches, according to Datos Insights research. Some embed stablecoin functionality directly into existing payment rails, keeping familiar workflows while blockchain settles underneath . Others buy orchestration platforms that shield operations teams from blockchain complexity. A third group leverages existing networks, such as SWIFT, to add blockchain capabilities to infrastructure that already connects FIs globally.
Blockchain enables simultaneous transfer and settlement across borders with programmable logic. However, orchestrating stablecoin payments at enterprise scale—handling routing, conversion, reconciliation, and compliance—still demands substantial infrastructure. Therein lies the challenge.
Early Warning’s Strategic Play
Early Warning Services (EWS) just declared its intentions. Zelle plans to leverage stablecoins to deliver faster, more reliable cross-border money movement, backed by its owner banks. The company aims to extend its domestic success to one of payments’ hardest challenges: moving money across borders safely, quickly, and conveniently. EWS offers this capability to all Zelle Network FIs on equal terms, indicating a genuine commitment to network inclusivity that transcends marketing rhetoric.
Three Strategic Implications for Zelle
Domestic expansion becomes inevitable. Zelle’s cross-border initiative addresses traditional payment inefficiencies, but the underlying technology applies equally to domestic transfers. This creates a strategic dilemma: Stablecoins offer clear advantages for international transactions, but Datos Insights anticipates pressure to extend their use domestically, potentially undermining Zelle’s current business model. However, resisting this shift may be unviable. U.S. merchants continue searching for cost-effective alternatives to credit card processing fees. Stablecoin-based account-to-account payments are poised to gain traction in the domestic market within a relatively short timeframe, if not immediately.
Infrastructure choices matter more than the announcement. Zelle currently operates exclusively with U.S. banks. Cross-border stablecoin payments require infrastructure extending well beyond that footprint, leading to some important questions. Will EWS leverage the rails its member banks already use? Will it maintain neutrality toward stablecoin infrastructure providers? These decisions carry decades-long competitive implications.
Implementation timelines exceed expectations. Industry experience shows retail banking products and corporate lending implementations consistently overrun vendor timelines by 12 to 18 months. For a solution with Zelle’s potential, managing expectations and ensuring successful delivery will be critical.
The Executive Perspective
Infrastructure ownership decisions banks make in the next 12 to 18 months will determine competitive positioning through 2030. Zelle’s announcement signals that even dominant domestic payment networks recognize the imperative. Namely, their technology stacks must function in a blockchain-enabled world.
The question isn’t whether FIs will integrate stablecoin capabilities anymore. It’s which infrastructure strategy they select, and whether those choices position them as infrastructure owners or merely users of someone else’s rails.
How is your institution preparing for stablecoin integration? Datos Insights helps FIs navigate the strategic infrastructure decisions that will define the next era of payments. Contact us to discuss how we can support your digital payments strategy.
