Stablecoin payments are going mainstream. What happens when the recipient needs local currency?

The following is a guest post and opinion from Danyel Arenas, Co-Founder and CEO at KiiChain.Visa’s launch of its Stablecoin Platform is a sign that stablecoins are moving into mainstream financial infrastructure. The platform gives banks, fintechs and payment providers a way to access, hold, move and redeem stablecoins within a Visa-managed environment.As that access improves, however, foreign exchange becomes a bigger part of the equation. Stablecoins can simplify the movement of value across borders, but each payment still needs to connect with the currency required at its destination.For that reason, local-currency liquidity and FX settlement are becoming increasingly important to the next phase of stablecoin payments.Stablecoin payments create more demand for FX infrastructureConsider a fintech serving businesses across Brazil, Mexico and Colombia. Stablecoins can provide a common asset for moving value between these markets, while its customers continue to operate in different currencies.That means each corridor still requires FX pricing, sufficient liquidity, conversion and settlement. Depending on the market, those functions may involve different providers and integrations,...