Replacing SWIFT: Stablecoin Settlement Networks for Colombian PSPs

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Jul 9, 2025

For years, Colombian Payment Service Providers (PSPs) have looked to SWIFT for international settlements, only to encounter persistent challenges: high cross-border transaction fees, slow settlement cycles, and limited transparency. Traditional methods like SWIFT often incur costs between 3% and 5% per transaction, with payout delays stretching from one to five business days (muralpay.com). As stablecoin settlement networks mature, forward-thinking PSPs across Colombia are seeking faster, lower-cost, and more transparent alternatives. This shift is not just about technology—it’s about redefining reliability and efficiency in a rapidly changing payments market.

Colombia ranks among the top five in Latin America for crypto adoption, setting the stage for rapid innovation. Internal initiatives and regulatory experimentation are paving the way for these digital rails. By integrating stablecoin settlement networks into their payment flows, Colombian PSPs are moving closer to real-time, cost-effective, and auditable international transactions—a transformation with broad implications for the entire sector.

SWIFT fees (3–5%) and multi-day settlements are squeezing Colombian PSP margins.
Stablecoin settlement networks cut costs to under 0.5% and pay out in minutes.
The SFC sandbox lets fintechs experiment with crypto while meeting KYC/AML rules.
Batch payouts and on-chain transparency improve reconciliation and client trust.

The Limitations of SWIFT for Colombian PSPs

Despite its global ubiquity, SWIFT presents a range of barriers for Colombian PSPs. The most pressing are the high per-transaction costs (often 3–5%) and settlement delays that can stall cash flow for several days. Many Colombian providers also report that reconciliation is complicated by a lack of real-time tracking, making it difficult to monitor the status of funds and respond quickly to issues, increasing the risk of delayed or failed transactions.

For many PSPs, these challenges have become unsustainable as client expectations shift toward instant, low-cost global payments.

Recent industry analyses confirm that traditional SWIFT transactions remain slow and expensive, especially for cross-border payments in Colombia (muralpay.com).

This environment has set the stage for innovation, motivating PSPs to seek alternatives that better align with the demands of modern commerce.

How Stablecoin Settlement Networks Transform Payments

Stablecoin settlement networks, leveraging blockchain technology, are reshaping what’s possible for international payments in Colombia. Unlike SWIFT, these networks enable near-instant settlements and provide a digital audit trail for every transaction. For example, a Latin American logistics company reduced its cross-border payment fees from 4% to under 1% after adopting stablecoins, while settlement times dropped from several days to just under an hour (muralpay.com).

Here’s how stablecoin networks stand apart:

Lower Costs: Stablecoin transactions often cost as little as 0.1% to 0.5% per transfer (muralpay.com).
Instant Settlement: Most stablecoin payments settle in a matter of minutes, dramatically improving operational efficiency for PSPs.
Full Transparency: Every transaction is recorded on-chain, delivering real-time tracking and auditability.
24/7 Availability: These networks operate around the clock.
Programmability: Smart contracts automate payouts, batch transfers, or compliance checks, reducing manual workloads.
Financial Inclusion: Stablecoins can be received directly by users without traditional bank accounts, expanding access for unbanked populations.

As Nano Rodriguez of Bitso observed, "By combining stablecoins with local payment rails, we’re unlocking a powerful cross-border experience—something traditional banking infrastructure simply can’t deliver."

For more on how batch stablecoin payments work in practice, see our guide on batch stablecoin payouts for Colombian fintechs.

Regulatory Landscape: What Colombian PSPs Must Know

It’s a question nearly every Colombian fintech faces: How can PSPs innovate with stablecoins while staying compliant in a shifting regulatory environment?

The real answer is nuanced. Colombia’s Superintendencia Financiera (SFC) has launched the "La Arenera" regulatory sandbox, allowing fintechs to pilot crypto-related services in a supervised setting (muralpay.com). The SFC’s 2024 summary clarified: "Entities engaging in crypto transactions must adhere to KYC, AML, and tax reporting obligations, even as comprehensive legislation evolves." For example, the UIAF requires reporting of all crypto transactions exceeding $150 USD.

This means Colombian PSPs can experiment with stablecoins—provided they rigorously comply with anti-money laundering (AML), know-your-customer (KYC), and tax rules. According to Catalina Gutiérrez, Director of the Fintech Colombia Association, "Regulatory clarity and compliance are the top challenges for batch payment adoption among Colombian fintechs."

For more on how the sandbox is changing the landscape, read our overview of global stablecoin accounts for Colombian banks.

Comparing SWIFT and Stablecoin Settlements: Speed, Cost, and Transparency

Choosing between SWIFT and stablecoin settlement networks is about more than just technology; it’s a direct tradeoff in cost, speed, and user experience. The table below highlights the most important differences for Colombian PSPs:

Feature	SWIFT	Stablecoin Settlement Networks
Settlement Time	1–5 business days	Minutes
Transaction Cost	3–5% per transaction	0.1–0.5% per transaction
Transparency	Limited, delayed tracking	On-chain, real-time visibility
Availability	Business hours, limited weekends	24/7/365
Batch Payouts	Manual, slow	Automated, instant

Stablecoin networks automate batch payouts, whereas SWIFT batch payments are often manual and subject to additional delays or errors.

A 2024 study found that stablecoin payments consistently outperform SWIFT on cost (by up to 90%) and speed, providing an immediate operational advantage (muralpay.com).

For a full breakdown, see our cost comparison of pay-ins vs. pay-outs for Colombian PSPs.

Operational Considerations for API Integration

Most PSPs won’t overhaul their infrastructure overnight. Instead, finance and engineering teams often begin by connecting a stablecoin payment API to existing treasury tools or ERP platforms. Because virtual USD or EUR accounts can sit alongside local COP accounts, businesses can trial on-chain rails without disrupting everyday workflows. Starting with low-risk corridors or batch payouts for contractors allows teams to validate faster settlement and simpler reconciliation before expanding network-wide.

Real-World Adoption: Case Studies from Colombia

Colombia’s transition to digital settlement networks isn’t hypothetical—PSPs and fintechs are already seeing results. Over 70% of Colombian fintechs plan to offer stablecoin payment options by 2025, illustrating a decisive market shift (muralpay.com). The country’s central bank has also piloted blockchain-based cross-border payment systems, signaling institutional embrace, including launches like Bancolombia’s Wenia (COPW) and Minteo’s COPM stablecoins.

Juan Pablo Córdoba, President of the Colombian Stock Exchange, put it simply: "Colombia is making significant progress in digital asset regulation, and stablecoins are being closely studied as part of upcoming fintech laws."

To understand how PSPs can integrate these systems, explore our best practices for stablecoin-to-fiat API integration in Colombia.

Key Risks, Challenges, and Regulatory Hurdles

It’s tempting to believe that the journey to stablecoin adoption is frictionless, but Colombian PSPs face real obstacles. Regulatory uncertainty remains a risk, especially as comprehensive crypto legislation continues to develop. In 2023, Colombia’s Financial Superintendence (SFC) imposed over $1.5 million USD in fines for non-compliance in the fintech sector (muralpay.com).

According to industry experts, compliance with KYC, AML, and tax regulations is non-negotiable. Changing policy also enables innovation through sandboxes, opening the door for compliant experimentation.

The smart move? Prioritize regulatory engagement and invest in compliance processes. For guidance on compliance and reporting, see our complete guide to cross-border payment compliance in Colombia.

The Future of Stablecoin Settlement Networks in Colombia

Colombia is positioning itself at the forefront of digital payments in Latin America. The central bank’s pilot of blockchain-based cross-border systems demonstrates growing institutional interest in stablecoins (muralpay.com), with the open finance framework (Decree 1297 of 2022) set to further support integration. As global giants like Visa and JPMorgan conduct live settlements using digital assets, Colombian PSPs are likely to see new opportunities for integration, financial inclusion, and efficiency.

For a deeper look at how blockchain can fit within traditional banking, see our guide on integrating stablecoin payments in Colombia.

Key Takeaways for Colombian PSPs Considering SWIFT Alternatives

Too many teams focus only on the pain of legacy systems without realizing how PSP stablecoin payments are reshaping the landscape for cost, speed, and transparency.

Key takeaway: Stablecoin settlement networks offer Colombian PSPs a proven, compliant, and cost-effective alternative to SWIFT, with instant settlement, real-time tracking, and growing regulatory clarity.

Transitioning PSPs must continue to prioritize KYC/AML compliance as part of this shift. Making the switch means not just saving money, but unlocking 24/7 payments and building trust with clients. To learn more, explore Mural Pay’s stablecoin settlement solutions.