Abstract: For over five decades, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) has served as the backbone of global finance, yet it remains constrained by the architectural inefficiencies of correspondent banking. This study evaluates the viability of fiat-backed stablecoins as a transformative alternative for cross-border transactions. Utilizing a mixed-methods approach, including speed benchmarking across 30+ corridors and a PRISMA systematic review of regulatory literature, the research identifies that stablecoins achieve a 50–80% cost reduction in high-friction corridors and near-instantaneous settlement finality. However, the study also highlights a "Regulatory Paradox," where compliance with AML/KYC "Travel Rules" and jurisdictional fragmentation creates significant barriers to institutional adoption. The research concludes by proposing an institutional decision framework to navigate these operational and geopolitical risks.

Keywords: Stablecoins, SWIFT, Cross-Border Payments, Blockchain, Financial Inclusion, Settlement Finality.

Downloads: | DOI: 10.17148/IARJSET.2026.13333