Zelle, the popular U.S. payment network, is setting its sights on international expansion by integrating stablecoin technology to facilitate faster and more reliable cross-border payments. Early Warning Services, the parent company of Zelle, announced the initiative on Friday, highlighting its commitment to extending the speed and convenience of Zelle to consumers sending money to and from the United States.

According to Early Warning Services CEO Cameron Fowler, the goal is to bring the "trust, speed, and convenience of Zelle" to international money transfers. The company views this move as a significant step in expanding Zelle's reach globally by leveraging stablecoins.

Zelle's exploration of stablecoin integration follows the U.S. government's establishment of a regulatory framework for stablecoins with the passing of the GENIUS Act three months ago. This regulatory clarity has provided financial institutions with greater certainty regarding the use of stablecoins, paving the way for Zelle to pursue this innovative approach.

Stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a reference asset like the U.S. dollar, have gained traction in cross-border commerce, remittances, and savings, particularly in countries with volatile economies. The stablecoin market has experienced substantial growth, exceeding $300 billion in October, reflecting increasing interest and adoption.

Zelle's move into stablecoins could pose a challenge to existing players in the cross-border payments market, such as PayPal and Wise, as well as cryptocurrency firms offering low-cost international money transfer services. With approximately $1 trillion transferred using Zelle last year, the platform has a massive customer base that could benefit from the ability to seamlessly send money internationally.

The new offering will be available to every Zelle bank, including major institutions like JPMorgan Chase, Wells Fargo, and Bank of America. While specific details of the initiative remain limited, Zelle's exploration of issuing its own stablecoin suggests a potential for further innovation in the future.

Other companies are also exploring the use of stablecoins in international payments. Global money transfer firm Western Union is actively piloting stablecoin-enabled solutions in its treasury operations, aiming to reduce reliance on traditional banking systems and improve capital efficiency.