Can Blockchain Resolve Delays in Cross-Border Payments? Nexo and Sphere Believe It Can
In an era where digital transactions occur almost instantaneously, why do international business payments still take several days to complete? The existing global cross-border payment framework, largely reliant on traditional banking systems, is often slow, expensive, and involves multiple intermediaries. According to the World Bank, the time required for settlement can extend from three days up to a week, with transaction fees ranging from 3% to 7%. For companies operating in countries with unstable currencies—like Argentina, Brazil, and Mexico—these delays and costs exacerbate financial risks and liquidity issues. In response, Nexo, a leading digital asset wealth platform, has formed a strategic alliance with Sphere, a pioneer in same-day cross-border settlements, to address these shortcomings. This partnership aims to harness blockchain technology to cut down settlement times from days to mere hours, enhance treasury management, and offer businesses nearly instantaneous currency conversions.
Tackling a Growing Issue
The shortcomings of outdated payment systems have prompted many businesses to seek alternative solutions. The Bank for International Settlements reports that the volume of global stablecoin transactions surpassed $7 trillion in 2024, indicating a rising demand for quicker, blockchain-enabled settlements. Nexo and Sphere intend to capitalize on this trend by offering firms a secure and compliant method to circumvent the sluggish correspondent banking networks.
How the Collaboration Operates
The partnership between Nexo and Sphere concentrates on three primary aspects:
- Near-Instant Settlement
Sphere’s adaptable infrastructure significantly reduces settlement times from days to hours, thus mitigating foreign exchange risk and enhancing liquidity for businesses. This advantage is particularly crucial for enterprises operating in high-inflation environments where stablecoins can act as a safeguard against currency fluctuations. Sphere’s API allows businesses, fintechs, and financial institutions to access quick, efficient currency conversion for cross-border transactions. - Reduced Costs and Smoother Transactions
By cutting out multiple banking intermediaries, the partnership lowers transaction fees, making payments more predictable and affordable. Nexo’s integration with Sphere enriches its array of financial services, including personal USD accounts, crypto-backed loans, and interest-earning products, while enabling corporate clients to transfer capital effortlessly across borders. - Regulatory-Compliant Blockchain Solutions
Adhering to regulatory requirements is a significant hurdle in the realm of digital payments. Nexo and Sphere are committed to navigating these challenges by operating within regulated environments to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations. Savina Boncheva, Chief Operating Officer at Nexo, stated, “At Nexo, we unite traditional and digital assets to build the next generation of wealth. Collaborating with Sphere furthers that goal by giving clients and businesses a faster, more transparent way to move between global currencies and digital assets, all within a compliant framework.” Arnold Lee, CEO of Sphere, added, “With Latin American economies facing significant inflation and currency instability, our partnership with Nexo is poised to be transformative. Together, we can create a secure, streamlined environment for everything from routine B2B transactions to larger settlements—substantially reducing the time and costs businesses encounter.”
A Scalable Future for Cross-Border Transactions
Nexo and Sphere intend to launch their blockchain-based payment infrastructure in select markets before expanding globally. As businesses increasingly adopt digital assets to improve financial efficiency, this collaboration might pave the way for a new benchmark in cross-border transactions.
