LemFi and BVNK Partner on Stablecoin Settlement for Remittances
LemFi has partnered with BVNK to use stablecoin rails for near-instant, lower-cost cross-border settlement.Summary
LemFi, a cross-border payments platform with over two million customers, has partnered with BVNK to route settlement traffic via stablecoin rails. This strategic move aims to replace traditional, slow, and expensive correspondent banking chains with near-instant back-end settlement, providing a seamless experience for end users while significantly reducing transaction costs.
The partnership follows Tether's investment in LemFi and signals the company's evolution from a simple remittance app into a broader financial infrastructure layer for diaspora communities. By utilizing stablecoin settlement, LemFi addresses the high cost of international transfers, which currently averages 6.36%—well above the UN Sustainable Development Goal target of 3%. This shift aims to return billions of dollars annually to recipient families by eliminating the multi-day, multi-fee intermediary banking process.
As the industry moves toward on-chain settlement, LemFi's approach aligns with broader market trends in Africa, Latin America, and Southeast Asia. The company must navigate evolving regulatory landscapes, including frameworks from the UK's Payment Systems Regulator and the EU's Markets in Crypto-Assets (MiCA) regulation, as it scales its infrastructure-based model.
(Source：The Fintech Times)