Colombia has become a standout in the Latin American fintech sector, with nearly 400 fintech companies operating in the country as of 2024—representing over 13% of the region's fintech ecosystem (statista.com). The international inbound remittance market in Colombia reached US$10.5 billion in 2024, increasing by 6% from the previous year (paynxt360.com). This growth is fueling interest among Colombian banks in piloting stablecoin APIs to modernize cross-border remittances and meet evolving customer needs.

The integration of stablecoin-powered payment infrastructure, such as that offered by Mural Pay’s platform, is central to this transformation.

• Stablecoin APIs can settle cross-border transfers in minutes, not days.

• Integrated AML/KYC checks help banks stay compliant while innovating.

• Lower fees make digital rails attractive for both banks and end users.

• Regulatory sandboxes in Colombia encourage experimentation with new payment tech.

The Remittance Challenge in Colombia

Traditional cross-border remittance methods in Colombia have long been characterized by high costs, slow processing times, and limited reach to vulnerable populations. While the percentage of adults holding a banking product has surged from 55% in 2008 to over 90% in 2024 (datacuberesearch.com), significant challenges remain for the underbanked and rural communities.

Remittance fees in Latin America and the Caribbean average around 4%—still above the United Nations' 3% target (blogs.iadb.org).

Reducing these costs and improving access is critical. Regulatory complexity and compliance burdens further complicate remittance flows, as detailed in the Colombian Cross-Border Payment Compliance Guide.

Platforms like Mural Pay further address these challenges by providing real-time transaction tracking and automated reconciliation, supporting both transparency and compliance.

How Stablecoin APIs Work for Banks

A stablecoin API acts as a digital bridge connecting banks’ established systems to the expanding world of blockchain-based payments. By leveraging APIs, banks can integrate programmable, compliant stablecoin transactions directly into their platforms—enabling near-instant settlement, automated reconciliation, and AML/KYC monitoring.

Key features include built-in AML/KYC protocols and the ability for banks to participate in regulatory sandboxes for innovation testing.

Unlike traditional rails, stablecoin APIs allow for programmable transfers of value (often in USDC or local peso-pegged coins) with real-time transparency. Colombia's move toward open finance, exemplified by Decree 1,297 in 2022, established clear standards for secure data sharing and payment initiation via APIs (en.wikipedia.org).

This regulatory progress signals a national commitment to advancing API-driven financial services.

For a deeper look at integration challenges and benefits, see Top Stablecoin APIs for Colombian Fintechs.

Why Colombian Banks Are Piloting Stablecoin APIs Now

Speed, cost savings, and compliance are the primary drivers motivating Colombian banks to experiment with stablecoin APIs. Banks and regulators recognize that digital assets can offer a leap in efficiency for both the banked and underbanked.

“We see growing demand among Colombian SMEs for faster, dollarized payments—stablecoins fill that gap,” observed a regional fintech executive (statista.com).

As the third-largest fintech market in Latin America, Colombia is particularly well-positioned to leverage these advantages at scale.

The Colombian Financial Regulation Unit’s open finance framework, introduced in 2022, underlines the country’s rationale: foster innovation, public-private collaboration, and better customer access to digital payments (en.wikipedia.org).

For more on how payroll and SME platforms are leveraging these trends, visit Why Colombian Payroll Platforms Are Shifting to Stablecoin Rails.

Real-World Case Studies: Stablecoin Remittance Pilots

Across Latin America, digital payment pilots are already delivering measurable results. While Colombia’s own pilots continue to expand, Brazil’s Pix payment system sets a compelling example: launched in 2020, Pix now serves 145 million users and processes nearly 3 billion transactions per month, at a cost to merchants of just 0.2% compared to credit card fees of 2.2% (elibrary.imf.org).

For Colombian banks evaluating stablecoin APIs, these regional successes highlight the improvements in cost and speed that programmable, API-powered rails can deliver.

Colombian banks such as Bancolombia are also testing stablecoin-based platforms like Wenia to pilot similar cost and efficiency improvements in domestic settings.

More on these operational models can be found in Automating Bulk Payouts in Colombia With Mural Pay’s API.

Beyond Remittances: Enterprise Use Cases

While remittances are the headline application, Colombian institutions are also exploring stablecoin APIs for treasury management, instant supplier disbursements, and digital dollar accounts that let exporters hold USD without opening an overseas entity. These emerging workflows illustrate how programmable money can streamline everything from royalties to marketplace escrow releases.

Traditional vs. Stablecoin Remittances—A Comparative View

Traditional remittance services are burdened by high fees and lengthy settlement periods. In contrast, stablecoin rails provide near-instant settlement, higher transparency, and lower costs—benefits already being realized by early adopters in the region.

Stablecoin-powered rails also provide improved audit trails and help banks meet growing compliance obligations.

For a practical business perspective, see Are Stablecoins a Good Option for Exporters in Colombia?.

Regulatory and Compliance Landscape

What regulatory frameworks shape stablecoin API adoption in Colombia? While the country’s regulatory sandbox “La Arenera” and Decree 1,297 have laid important groundwork, compliance remains a moving target.

Colombia’s Financial Regulation Unit’s voluntary framework for open finance and API integration fosters collaboration and standard-setting (en.wikipedia.org).

Ongoing supervision from the SFC and UIAF means that banks and fintechs align with changing compliance standards as they pilot new API solutions.

However, regulatory challenges persist as financial institutions work to align with shifting standards and reporting requirements.

For a compliance checklist and best practices, visit Stablecoin Compliance Checklist for Colombian PSPs.

Barriers and Risks—What Banks Must Watch For

It’s tempting to see stablecoin APIs as a silver bullet, but there are significant hurdles. The IMF notes that digital remittances in Latin America face persistent barriers, including the prevalence of cash, low financial inclusion, and regulatory gaps, which keep digital adoption limited and remittance costs above global goals (elibrary.imf.org).

Banks must overcome technical integration challenges, interoperability issues with legacy systems, and maintain airtight KYC/AML compliance.

The absence of widely adopted protocol standards can create additional friction when integrating with multiple providers.

For actionable guidance on managing these risks, see Best Practices for Stablecoin-to-Fiat API Integration in Colombia.

The Future of Digital Payments in Colombia

The future of digital payments in Colombia is bright.

Strategic partnerships between established banks and agile fintechs are anticipated to accelerate the adoption of digital wallets and stablecoins.

The country’s fintech digital payment market is projected to soar to US$139.93 billion by 2032, with a compound annual growth rate of 20% (datacuberesearch.com).

This robust outlook is fueled by the continued expansion of API-driven solutions, deepening partnerships between banks and fintechs, and accelerating user adoption of digital wallets and stablecoins.

For more insights and projections, see Future Trends in Digital Banking and Remittances in Colombia.

Interested in learning how your institution can pilot stablecoin-powered remittances? Contact the Mural Pay team to access our sandbox environment and explore real-time settlement firsthand.

FAQ

What is a stablecoin API and how does it connect to core banking systems?
A stablecoin API provides programmatic endpoints that let banks initiate, track, and reconcile blockchain transactions from their existing tech stack without overhauling core banking software.

How do stablecoin rails reduce settlement times?
They use blockchain networks that confirm transactions in seconds, allowing funds to move nearly instantly instead of waiting days for correspondent banking channels.

What compliance controls are built into stablecoin transactions?
Mural Pay’s API performs real-time AML/KYC checks, generates detailed audit logs, and supports reporting requirements set by the SFC and UIAF.

Can banks offer **virtual USD accounts** without holding crypto on balance sheet?
Yes. Funds can be held as tokenized dollars off balance sheet, while customer balances are reflected within the bank’s ledger, similar to existing custodial arrangements.

References

• Statista. (2024). Fintech in Colombia. https://www.statista.com/topics/5375/fintech-in-colombia/

• DataCube Research. (2023). Colombia Fintech Market. https://www.datacuberesearch.com/colombia-fintech-market

• PayNXT360. (2024). Colombia International Remittance Market. https://www.paynxt360.com/reportstore/view/colombia-international-remittance--1763

• Inter-American Development Bank. (2021). Why Are Remittance Costs Still High? https://blogs.iadb.org/ideas-matter/en/why-are-remittance-costs-still-high/

• Wikipedia. (2022). Open Finance. https://en.wikipedia.org/wiki/Open_finance

• IMF. (2023). Brazil: Staff Report for the 2023 Article IV Consultation. https://www.elibrary.imf.org/view/journals/063/2023/003/article-A001-en.xml