Zelle Operator Early Warning to Test Stablecoin Payments
Banks’ Payments Network Prepares for Global Expansion
Zelle, the U.S. bank-owned payments network, is preparing to expand internationally — and it intends to use stablecoins as the settlement layer. ahead Warning Services (EWS), the consortium that operates Zelle, said it plans to “leverage stablecoins” to support cross-border payments, though it gave no details on partners, currencies, or timing. Reports suggest the group has explored issuing its own token, which would make it one of the first major banking networks to adopt blockchain-based retail settlement.
The move follows Washington’s passage of the GENIUS Act, the country’s first federal law governing dollar-backed stablecoins. The legislation sets reserve and disclosure standards for issuers, clearing a regulatory path that U.S. banks had lacked for years. EWS’s effort also comes months later than the Consumer Financial Protection Bureau dropped a lawsuit over Zelle’s handling of fraud cases, easing pressure at the federal level even as New York’s attorney general pursues separate litigation.
Zelle processed two billion payments worth about $600 billion in the first half of 2025. The network serves more than 150 million users and links seven major banks — JPMorgan Chase, Bank of America, Wells Fargo, PNC, Capital One, Truist, and U.S. Bank — along with 2,500 smaller institutions. An international rollout would extend that reach to remittances and cross-border transfers, bringing Zelle into direct competition with fintechs such as Wise, Remitly, PayPal’s Xoom, and the instant payment services operated by Visa and Mastercard.
Protecting the Banks’ Turf
For the banks behind EWS, the aim is to keep payments flowing through systems they control rather than through open crypto wallets or non-bank platforms. A stablecoin could allow instant settlement between countries while maintaining the identical bank-to-bank experience consumers already know. People familiar with the project said EWS has not chosen a blockchain, corridor, or timeline, but any pilot is likely to begin in low-risk G20 markets before expanding to remittance-heavy regions.
Two models are under discussion. One involves partnering with a regulated stablecoin issuer and using the token purely as a backend settlement tool, keeping the Zelle branding intact. The other — riskier but more direct — would involve EWS issuing its own digital coin. That path would give banks full control over governance but expose them to reserve audits and disclosure rules that traditional payment networks rarely face.
Investor Takeaway
Legal Baggage and Consumer Concerns
Zelle’s domestic growth has been clouded by fraud disputes and refund complaints. later than criticism from lawmakers, EWS expanded its reimbursement policy in 2023, though a Senate report later called the reforms insufficient. The CFPB’s 2024 case accused Zelle and three owner banks of allowing scams to flourish, but the bureau dropped the suit three months later. New York’s attorney general has since filed her own case, alleging “widespread consumer harm.”
This split — federal de-escalation alongside state-level enforcement — complicates any global expansion. To operate across borders, EWS must show that its identity checks and dispute procedures can satisfy foreign regulators while preserving the speed that made Zelle popular in the first place.
Rebuilding a Bank-Centric Payments Stack
The stablecoin project fits into EWS’s broader strategy. In April, the consortium launched Paze, a digital wallet for online checkout, claiming roughly 150 million cards on file within months. Together, Zelle and Paze outline an attempt to reassert banks’ role in everyday payments — from peer-to-peer transfers to e-commerce and, eventually, international remittances.
If the stablecoin plan proceeds, banks could reduce reliance on sluggish correspondent networks and trim the dormant “nostro” balances they maintain abroad. Settlement would occur almost instantly on a regulated blockchain, cutting costs for consumers and financial institutions alike. But the approach also introduces new obligations: data sharing under the “travel rule,” blockchain analytics for compliance, and sanctions screening across jurisdictions.
Investor Takeaway
What Lies Ahead
EWS has offered few specifics on how or when stablecoin functionality will reach consumers. Key questions remain: will it issue its own token, or rely on an existing issuer? Which blockchains will handle settlement? And how will platform-rate differences, reversals, and consumer protections work in cross-border settings?
