The New Revolution in International Remittances: USDT Remittances Help You Easily Save More Than Half in Fees

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Do you want to know how to use stablecoins for international remittances to save costs? The answer is simple. You can follow the path of “local fiat → purchase stablecoins → transfer stablecoins → sell stablecoins” to bypass the high fees of traditional banks.

Traditional bank remittances can have total costs as high as 6%, while stablecoin remittances can reduce overall costs to below 1%. This means your total expenses can easily save more than half.

This process allows you to avoid paying expensive intermediary bank fees and bearing high exchange rate spreads, achieving efficient and economical cross-border fund transfers.

Key Takeaways

• Using USDT stablecoins for international remittances can save more than half in fees compared to traditional banks.
• Stablecoin remittances are mainly divided into three steps: purchase USDT, transfer USDT via the TRC-20 network, and finally exchange USDT for local currency.
• The TRC-20 network is the best choice for transferring USDT because it has low fees and fast speed.
• Stablecoin remittances not only save money but also have fast speed (seconds to minutes) and transparent transaction records.
• When conducting stablecoin remittances, be sure to carefully verify the recipient address and network, and choose a reliable trading platform to ensure fund security.

How to Use Stablecoins for International Remittances: Three-Step Guide

Now that you understand the basic principles, let’s move to the practical part. The entire process can be broken down into three simple and clear steps. By following this guide, you will be able to complete remittances safely and efficiently. Understanding how to use stablecoins for international remittances is the first step to mastering this new skill.

Step One: Purchase Stablecoins (USDT)

Your first task is to exchange the fiat currency in your hand (such as USD, EUR, etc.) for stablecoins. USDT is the most commonly used one because it is pegged 1:1 to the USD, with relatively stable value.

1. Choose a reliable cryptocurrency exchange You need to register an account on a platform that supports fiat trading. When choosing, you should consider the platform’s reputation, user-friendliness, supported fiat currencies, and payment methods. For beginners, large and reputable exchanges are the top choice because they usually provide better security and customer support.

   Tip: Completing identity verification (KYC) is a necessary step. This is not only a compliance requirement but also unlocks higher trading limits and protects your account security.

   Here are some mainstream exchanges and their supported fiat currencies and payment methods for your reference:

   Exchange Name	User-Friendliness	Number of Supported Fiat Currencies	Payment Methods
   Binance	High	50+	Bank transfer, credit/debit card, P2P trading
   OKX	Medium-High	90+	Bank transfer, credit/debit card, P2P trading
   Coinbase	High	10+	Bank transfer, credit/debit card, PayPal
   Kraken	Medium-High	7	Bank transfer, credit/debit card
   Bybit	Medium-High	40+	Bank transfer, credit/debit card, P2P trading

   You can see that platforms like Binance P2P and OKX P2P support over 100 fiat currencies, providing great convenience for global users.

2. Use fiat to purchase USDT After registering and verifying your account, you can deposit fiat to buy USDT. Common payment methods include:

   • Bank transfer: Such as SEPA (Europe) or ACH (USA), with lower fees but may take 1-3 business days to arrive.
   • Credit/debit card: Simple operation, almost instant arrival, but relatively higher fees.
   • P2P trading: That is, “peer-to-peer” trading. You can directly buy USDT from other users in the exchange’s P2P market and complete payment using localized methods (such as FPS from Hong Kong licensed banks). This method is flexible and usually has lower fees.
   • Third-party payment: Some platforms support purchasing via PayPal, Skrill, and other e-wallets.

Step Two: Select Network and Transfer Stablecoins

After purchasing USDT, it will be stored in your exchange account. The next step is to send it to the recipient’s exchange account in their country/region. This process is like transferring from one e-wallet to another, with the key being to choose the correct “transfer network”.

You can think of different blockchain networks as different courier companies. They can all deliver your “package” (USDT), but with different speeds and postage costs.

• ERC-20 (Ethereum network): This is one of the earliest networks supporting USDT. It is very secure, but the problem is expensive “postage” and “traffic” congestion. The fee for one transfer may be between $5 and $50, and it takes several minutes to confirm.
• TRC-20 (TRON network): This is currently the most popular choice for international remittances. Its “postage” is extremely low, usually less than $1, sometimes only about $0.81. And its “road” is very wide, with extremely fast transaction speeds, usually completing in seconds.

Conclusion: For international remittances pursuing low cost and high efficiency, the TRC-20 network is your top choice. It can help you save over 90% in transfer fees.

During operation, you only need to obtain the USDT deposit address from the recipient’s exchange account (ensure it is the TRC-20 network), then select “Withdraw” in your exchange, enter the recipient’s address and amount, and choose the TRC-20 network to complete the transfer.

Step Three: Exchange for Fiat in the Receiving Country

When the recipient’s exchange account receives the USDT you sent, there is only the final step left: sell the USDT and exchange it for local fiat cash. This process is exactly the opposite of your first step in purchasing USDT.

The most common and convenient way is also to use the exchange’s P2P trading market.

1. Post a sell ad or select a buyer: The recipient can find buyers willing to purchase USDT with local fiat in the P2P market.
2. Confirm receipt: The buyer pays the recipient via the agreed method (such as bank transfer).
3. Release USDT: After the recipient confirms receipt in their bank account, they click “Confirm Receipt” on the exchange platform, and the platform releases the escrowed USDT to the buyer.

The entire P2P trading process is secured by the exchange’s escrow service, ensuring fund safety. As long as you do not release your USDT before confirming receipt of fiat, the transaction is safe.

Security Tip: P2P Trading Best Practices

• Verify trading counterparties: Choose certified merchants with many transactions and high positive ratings.
• Use platform escrow: Never conduct private transactions outside the platform. The platform’s escrow service is your security guarantee.
• Carefully check addresses: Before any cryptocurrency transfer, be sure to repeatedly confirm that the address and network are correct, as transfers are irreversible.
• Enable two-factor authentication (2FA): Add an extra layer of security protection to your exchange account.

Through these three steps, you have completed a full, low-cost stablecoin international remittance. This guide on how to use stablecoins for international remittances aims to help you clearly master every link.

Cost Comparison: Stablecoin Remittances vs. Traditional Banks

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Now that you understand the operation steps, but how much money can stablecoin remittances actually save you? Let’s use a detailed cost comparison to give you a clear and intuitive understanding of the fee structures and final differences between the two methods.

Cost Structure of Stablecoin Remittances

The cost structure of stablecoin remittances is very simple and transparent, mainly consisting of the following three parts:

• On/Off-Ramp Costs: These are the fees incurred when you use fiat to purchase USDT (on-ramp) and when the recipient sells USDT back to fiat (off-ramp).

  • If you purchase through the exchange’s trading function as a taker, the fee is usually between 0.05% to 0.60%.
  • If you use P2P trading, the fee is usually lower, sometimes even zero, with costs mainly reflected in the small price difference between buying and selling.

• Network Costs: This is the “miner fee” or “energy fee” paid to the network when transferring USDT on the blockchain.

  • When choosing the TRC-20 network, this fee is extremely low. As shown in the table below, the median transfer fee is only 0.77 USDT.

  Fee Type	Amount (USDT)
  Minimum Fee	Free (0)
  Median Fee	0.77
  Maximum Fee	30.00

• FX Costs: Since USDT is pegged 1:1 to the USD, if your remittance is denominated in USD, there is almost no FX cost. If other fiat currencies are involved, the cost is limited to the small exchange rate difference at local exchanges, far lower than banks’ exchange rate markups.

Summary: The total cost of stablecoin remittances can usually be controlled between 0.5% to 3%, depending on your chosen platform and trading method.

Cost Structure of Traditional Bank Remittances

In contrast, international remittances conducted by traditional banks through the SWIFT network have a much more complex cost structure and include many “hidden fees”.

• Bank Fixed Fees: Your remitting bank will charge a fixed wire transfer fee, usually between $5 USD to $75 USD.
• Intermediary Bank Fees: This is the most opaque charge. Before funds reach the receiving bank, they may pass through one or more intermediary banks, each charging $15 USD to $50 USD in processing fees. You usually cannot predict the exact amount of this fee.
• Exchange Rate Markups: The exchange rate provided by banks is not the real-time market rate; they add 1.5% to 3.5% markup to the rate to make a profit. This is the largest hidden cost.
• Receiving Bank Fee: Some banks also charge a fee to customers receiving international remittances, up to $25 USD.

You can see that traditional remittance fees stack up layer by layer, with total costs potentially reaching 6% of the remittance amount or more, and you often only know the exact fees after the remittance is complete.

Example Calculation: Intuitively Feel the Cost Savings

To give you a more intuitive feel for the difference, let’s calculate a $10,000 remittance using traditional banks and USDT respectively, and see how much the final costs differ.

Scenario One: Remittance via Traditional Bank (SWIFT)

Scenario Two: Remittance via USDT (TRC-20 Network)

The conclusion is obvious: By using USDT for remittance, you ultimately save $234 ($285 - $51), and the recipient receives $234 more. This clearly demonstrates how to use stablecoins for international remittances to significantly reduce costs.

Intermediary bank fees are an expensive and opaque cost in traditional remittances; the chart below shows the typical range of this fee when initiating SWIFT transfers from different regions.

Real Case: Overseas Filipino Workers (OFWs) are early beneficiaries of this revolution. By using USDT for remittances, they have successfully reduced total fees from the previous high of 10-11% to just 1%. Funds can arrive almost instantly in the recipient’s GCash, Maya, or local bank account in the Philippines, completely transforming the previous experience of remittances taking days and costing high fees.

Advantages and Choices: Why Stablecoins Are the Better Option?

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You have seen the huge cost advantages of stablecoin remittances. But saving money is only part of the story. Stablecoins also far surpass traditional banks in speed and transparency.

Not Just Saving Money: Speed and Transparency Advantages

One of the biggest pain points of traditional bank transfers is waiting. Your funds need several business days to arrive, and banks do not process on weekends or holidays.

Stablecoin networks operate 24/7 year-round. This means you can initiate a transfer at any time, and the recipient can receive funds within minutes, unrestricted by bank hours or time zones.

Let’s look at the direct speed comparison between the two:

Additionally, every stablecoin transaction is recorded on the public blockchain. You can check the transaction status at any time and clearly know where your funds are. This transparency eliminates the anxiety of unknown fund whereabouts in traditional remittances. Understanding these advantages is a key step in mastering how to use stablecoins for international remittances.

Choices Beyond USDT: TRC-20 vs. Stellar Network Comparison

Although we mainly discussed USDT, you have other excellent options. Different networks and stablecoins have their own characteristics; understanding them can help you make the best decision.

The TRC-20 network is widely popular for its low fees and high speed. In addition to USDT, you can also find and use USDC (USD Coin) and other USD-pegged stablecoins on this network.

Another noteworthy option is the Stellar network. It is designed specifically for fast, low-cost global payments.

As you can see, the Stellar network has even lower fees and equally lightning-fast speed. For small remittances pursuing ultimate efficiency and cost, Stellar is a very attractive alternative.

Risk Warnings and Safe Operation Guide

You have learned the huge advantages of stablecoin remittances, but before enjoying the convenience, you must clearly understand and manage the related risks. Knowing how to operate safely is key to successfully using this new tool.

Operational Risks: Address and Network Selection

The biggest risk in cryptocurrency transfers comes from operational errors, because once a transaction is confirmed, it cannot be revoked.

Important Tip: Before clicking “Send”, be sure to repeatedly verify the address and network. A small mistake can lead to permanent loss of your funds.

The two most common errors are:

• Sending to the wrong network: For example, you send USDT based on the Ethereum network (ERC-20) to a TRON network (TRC-20) address. Your funds will not disappear but will be stuck on the target network, making them invisible in your expected wallet.
• Sending to the wrong address: If you send funds to a valid but someone else’s address, the money is almost impossible to recover. If the address format is invalid, the transaction usually fails, and funds remain in your account.

Platform Risks: Choosing a Reliable Exchange

Your fund security also depends on the trading platform you choose. Historically, even large exchanges have experienced security breaches, such as Coincheck and FTX suffering hacker attacks leading to hundreds of millions in user losses.

When choosing a platform, you should examine the following:

• Security Measures: Does the platform store most assets in offline “cold wallets”?
• Compliance: Does the platform operate under clear regulatory frameworks and comply with anti-money laundering (AML) and know-your-customer (KYC) policies?
• Reputation: Does the platform have a history of major security incidents?

Security Best Practices To protect your account, be sure to enable two-factor authentication (2FA) and set up withdrawal whitelists. 2FA adds an extra verification step, while whitelists ensure your funds can only be sent to pre-approved addresses, effectively preventing unauthorized withdrawals.

Compliance Risks: Complying with Local Laws and Regulations

Using stablecoins for remittances is not in a “lawless zone”. You must comply with the laws and regulations of both the remitting and receiving locations.

Regulatory policies vary by country. For example, the Central Bank of the Philippines recognizes and regulates virtual currencies as remittance channels, while in the United States, cryptocurrencies are generally treated as property, requiring compliance with corresponding financial regulations.

Additionally, taxes are something you must consider. In jurisdictions like the United States, almost all transactions involving stablecoins—including purchasing with fiat, selling back to fiat, or even using them to buy goods—may be considered taxable events, and you need to report potential capital gains or losses. The KYC (identity verification) process executed by legitimate exchanges is precisely to comply with these compliance requirements.

The core advantages of stablecoin remittances lie in their extremely low fees, faster speeds, and transparent transaction records. They are becoming a powerful supplement to traditional international remittances, with even institutions like JPMorgan recognizing their speed advantages in cross-border payments. After fully understanding the key steps of “purchase-transfer-sell” and related risks, you can start with a small remittance to personally experience this efficient and economical new remittance method.

FAQ

Is using stablecoins for remittances legal?

You need to comply with the laws of the remitting and receiving locations. Many countries allow this method, but policies vary. Before operating, you should proactively understand and confirm local financial regulations to ensure your actions are compliant.

Is there a minimum amount limit for remittances?

Stablecoin remittances have no fixed minimum amount limit and are very flexible. You can start with a small amount (such as $50). This helps you familiarize yourself with the entire operation process and build confidence before investing large amounts.

What if I transfer USDT to the wrong address?

Blockchain transfers are irreversible. If you send to the wrong address, the funds will likely be permanently lost. Therefore, before confirming the send, you must repeatedly verify that the recipient address and network selection are completely correct.

How does the recipient exchange USDT for HKD and deposit it into a bank?

The recipient can sell USDT in the exchange’s P2P market. They choose buyers who accept HKD and support FPS. During the transaction, the buyer will directly transfer HKD to the recipient’s designated Hong Kong licensed bank account.