A $3 trillion increase in blockchain payments predicted by 2025, costs falling and speed increasing

CoinLaw found that RippleNet will process more than $15 billion in cross-border transactions every month by 2025.

Blockchain technology has quickly become a major pillar of global finance, with cross-border payments becoming one of its most cornerstone applications, according to a new report from CoinLaw.

The research shows that blockchain-based cross-border payments have grown at an annual rate of 45% over the past decade and are expected to reach $3 trillion by 2025.

Blockchain reduces costs and accelerates payments

Average transaction fees on blockchain networks have dropped by 70% to 80% compared to traditional payment channels, while processing times have shrunk to just 3-10 seconds, compared to the 2-5 days typical of older systems. RippleNet alone now processes more than $15 billion in cross-border transfers every month.

Meanwhile, more than 120 countries are actively developing central bank digital currencies (CBDCs) to streamline international transactions. Coin law too found that almost 40% of global remittance companies now rely on blockchain solutions. Interestingly, Africa is witnessing a 60% increase in adoption, amid rising demand for affordable, efficient remittance infrastructure.

The survey also shows that approximately 85% of US banks are testing or fully integrating blockchain-based solutions into their payment systems. The Asia-Pacific region is a global leader in this area, with 60% of financial institutions using blockchain, followed by 55% in North America and 50% in Europe.

Visa and Mastercard have reportedly processed more than $5 billion in cryptocurrency transactions this year through partnerships with blockchain startups. The report also noted that blockchain-based cross-border payments have increased 45% annually and are expected to reach $3 trillion by 2025.

Insurance companies have increased blockchain usage to 35% for faster claims processing, up from 18% in 2022. In addition, banks are saving up to 35% on operational costs by cutting out middlemen and reducing fraud, and the average transaction speed has fallen to 10 minutes compared to more than 10 minutes five years ago.

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Inflation drives massive crypto adoption

In El Salvador, about 35% of the population has used crypto wallets since Bitcoin became legal tender. Nigeria leads Africa’s peer-to-peer trading activity as it accounts for 45% of the continent’s total crypto transactions.

Meanwhile, Argentina and Turkey have recorded a 60% increase in adoption this year due to persistent inflation and currency instability.