How stablecoins are redefining payouts and remittances – insights from Encryptus Founder Shantnoo Saxsena

After attending the Cardano Summit, Shantnoo Saxsena, Founder of Encryptus, shares his insights on how crypto and stablecoins are transforming the payouts and remittances landscape. 

In this conversation, he discusses the mission behind Encryptus, its connection with Anzens and USDA, the challenges and opportunities in the cross-border payments space, and what the future holds for stablecoins in the evolving Web 3 payments ecosystem.

To begin, could you tell us a bit about Encryptus and its connection with Anzens and the USDA?

Encryptus is positioned as a Fintech 2.0 that offers licensed Crypto <> Fiat infrastructures without touching the SWIFT Network. Encryptus offers its proprietary Real-Time Payment Settlements (RPS) in over 100 countries (covering emerging markets) to banks, e-wallets, and alternate payment methods through easy-to-integrate APIs and Widgets. 

I founded Encryptus with a vision to offer regulated payment infrastructures at a fair price by leveraging blockchain. On the regulatory front, we hold VASP in Europe and are expanding our regulatory footprint in the UAE with the VARA license. On the payments side, through our payments company, we are authorised for Global Payment Settlements in APAC and African regions.

Anzens emerged as our sister company with a complementary vision. We recognised from experience that for cross-border payments to truly transform, we needed a compliant, scalable, stablecoin infrastructure. Anzens Inc. is the issuer of USDA, a US dollar-pegged regulated stablecoin built natively on Cardano. The technology infrastructure comes as a collaborative effort between EMURGO, a founding entity of Cardano, and ourselves, while Encryptus provides the operational and compliance backbone. BitGo Trust, a qualified custodian, provides institutional-grade custody for the reserves backing USDA.

This partnership structure reflects our belief that the future of payments requires collaboration between specialised players. Anzens focuses on the stablecoin issuance, governance, and its distribution, while Encryptus handles the extensive real-time payout network covering 80+ countries for bank wires and 40 countries for e-wallets, plus mobile top-ups and gift cards in 115+ countries.

What inspired the creation of the USDA, and what key challenges or inefficiencies in the payments ecosystem were you aiming to solve?

The inspiration came from working in the trenches of cross-border payments for years and facing difficulties. I worked in the payments space for almost a decade, and the problems were delayed settlements, blocked capital with the partners, currency risks (fluctuations), and delays. My entry into the blockchain world was in 2016 with BitPesa (Now AZA Finance), wherein we were selling the power of blockchain, i.e., Bitcoin, to the payment companies to offer real-time settlements and better commercials to consume our network. Building the first OTC desk for Huobi (Now HTX) in 2018 was another inspiration because we connected Fiat < > Crypto again. One ambition which we were clear about from the very beginning was not to launch our own blockchain or a random token, but to bring payments to blockchain. 

We approached it in reverse: we built the payments network first, established a credible blockchain with Cardano next, and finally launched a regulated stablecoin to bring our ideas with Anzens – USDA to life.

On the retail front, I have personally seen users paying as much as 8% of their hard-earned money in remittance fees and margins. It’s insane and unfair for the users to be paying such a high fee in the modern world, where we have the best of the technology, but the movement of money is really slow, and the remittance fee is still climbing. The average remittance fee was 7.5% a decade ago, and at present it is 6.45% as per the World Bank. For families depending on these funds, which is the case for many people in emerging markets, the delay and the cost aren’t just inconvenient but potentially devastating.

We aimed to solve several core inefficiencies:

1. The high-cost problem stems from multiple intermediaries, each taking its cut. Banks, money transfer operators, software providers, and correspondent banks all add fees and foreign exchange margins.
2. The speed issue reflects outdated infrastructure operating on business hours and batch processing.
3. The transparency challenge leaves senders and recipients uncertain about actual costs and arrival times.
4. A lack of an active approach to implement the right technology with simple yet effective settlement tools.

USDA addresses these by providing a dollar-denominated stable value that moves at blockchain speed with minimal fees. 

You have extensive experience in the payouts and remittances space. How are these transactions typically handled by traditional providers, and in what ways is crypto improving efficiency, transparency, and access? Could you focus on the MENA region?

Traditional remittances follow a complex path. The sender pays at an Agent location of the Money Transfer Operator, like Western Union, in their local currency. That MTO instructs an agent in the recipient's country to deliver funds in the local currency. Along this chain, fees accumulate: transaction fees, foreign exchange spreads, receiving fees, and sometimes additional charges for weekend or expedited services. The average cost remains around 6%, though it can reach 12% for bank transfers. Settlement typically takes 1-3 business days. The fiat flows for a traditional payment institution are complex; for example, an agent location of Western Union collects cash in the local currency from the sender who wants to send their funds. The deposits from the agents are generally paid every 24 hours to the MTO. However, the MTO must prefund the receiving partner to payout the local currency instantly. 

Digital Assets and specifically Stablecoin like USDA fundamentally change this model. With stablecoins, the sender can transfer value directly to the recipient's wallet in minutes, 24/7, for a fraction of traditional costs. Blockchain fees on Cardano are minimal and predictable. The recipient of the stablecoin now has two options: either to maintain the value in USDA (USD-backed stablecoin and convert as required), or they can convert to local currency through local exchanges or our payout network. The entire transaction is transparent and traceable on the blockchain.

The frontier markets present a particularly compelling case. Countries like Egypt, where remittances account for about 8% of GDP, face significant challenges with currency volatility. The Egyptian Pound has experienced a 75% devaluation in the past 5 years against USD, making dollar-denominated stablecoins attractive for preserving value. Egypt's national bank has even begun exploring crypto-based remittance corridors between Egypt and the other GCC countries, where many Egyptian workers are employed.

In the GCC, adoption is driven by different factors. Young, tech-savvy populations with higher disposable incomes view crypto as an investment opportunity and payment innovation. UAE has positioned itself as a global crypto hub with forward-looking regulation through VARA and ADGM. This regulatory clarity provides the confidence needed for mainstream adoption.

The MENA region received over USD 338 billion in crypto value between July 2023 and June 2024, making it the seventh-largest crypto market globally. Turkey and Morocco rank highly in global crypto adoption indices, largely driven by remittance use cases and savings preservation against currency devaluation. Crypto offers speed, lower costs, and access to financial services for populations that traditional banking has underserved. 

While the benefits of crypto-based payments and stablecoins are clear, many players are still hesitant to join these rails. What are the biggest obstacles to adoption, and how can the industry overcome them?

I have been saying this for years, but the biggest reason for slow adoption is education. I often meet senior executives managing large businesses in the Web 2 space, but generally, what they are not very comfortable talking about is digital assets in any shape or form. It's easy for someone in the space to appreciate the innovation, but very hard for someone outside to believe in this growing ecosystem, even to trust the innovation. Using crypto often requires understanding wallets, private keys, blockchain networks, and other concepts foreign to traditional finance users. On top of all of this, reputation challenges persist. Cryptocurrency's association with speculation, volatility, and illicit activity makes mainstream businesses cautious. High-profile exchange collapses, and hacks undermine confidence. The industry must demonstrate that stablecoins and regulated platforms operate differently from the Wild West narratives that dominate headlines. Building trust requires use cases cost savings with consistent compliance.

Regulatory uncertainty is another major reason. Different jurisdictions have different rules, and some ban cryptocurrencies outright. Businesses fear investing in infrastructure that regulations might prohibit or severely restrict. The industry needs clear, consistent frameworks that protect consumers while enabling innovation. Progress in 2024 and 2025, particularly Europe's MiCA framework and evolving US approaches, provides cause for optimism.

Infrastructure gaps limit utility. Converting stablecoins to local currencies requires reliable on and off-ramps, which remain limited in many regions. Finding banking partners willing to support crypto transactions can be difficult. Building this infrastructure requires partnerships between crypto companies and traditional financial institutions, gradually connecting digital asset networks with legacy banking systems.

What would you say to sceptics of Web3 payments?

Payments and Web 3 are closer now than in 2024. I'd say their scepticism is healthy and necessary. The crypto industry needs critical voices that demand substance over hype. Not every blockchain project delivers real value, and past failures rightfully make people cautious. When we at Encryptus began building our Crypto-to-Fiat payments product in 2023, even some well-known names in the crypto and payments space shook my confidence by saying businesses wouldn’t want to implement it. By 2024, they were curious, and by 2025, they were actively working with us.

However, I'd encourage sceptics to examine the actual data. Stablecoin transaction volumes reached approximately USD 5 trillion in 2024. That's not speculation on a whiteboard but real value moving through these networks. Major corporations like Western Union, Stripe, Visa, and Mastercard are either launching their own or integrating stablecoin infrastructure, not because it's trendy but because the economics and utility are compelling.

In countries experiencing currency devaluation, stablecoins preserve savings. For migrant workers sending money home, crypto remittances reduce costs that would otherwise feed families. In areas with limited banking access, mobile wallets connected to crypto rails provide financial services previously unavailable.

The question isn't whether blockchain is perfect; it's whether it's better than the status quo for specific use cases. For cross-border payments, the answer is increasingly yes. Settlement in minutes versus days, costs of less than USD 7.5 to settle a USD 500 transaction versus a USD 30 fee for the same USD 500, 24/7 availability versus business hours, sending a micropayment of USD 20 to a friend on a birthday for a fee less than USD 1, versus the inability to send a small amount. These aren't theoretical benefits but measurable improvements.

Web 3 payments won't replace every traditional system overnight. They'll start where the pain points are greatest and the value proposition is clearest: remittances, cross-border business payments, and underserved markets. As regulatory clarity improves and infrastructure matures, adoption will expand. Scepticism should drive us to build better, more secure, more user-friendly systems. That's exactly what we're doing at Anzens and Encryptus. We believe Web 2 and Web 3 businesses will have to work together to bring in a superior value proposition to their respective businesses and the users. 

You've just attended the Cardano Summit. What were your key takeaways from the event, particularly regarding the future of stablecoins and their role in the global payment ecosystem?

The Cardano Summit in Berlin underscored that blockchain is moving decisively from theoretical potential to practical implementation. The presence of government officials, traditional financial institutions, and enterprise executives alongside crypto leaders and innovators signals a maturation of the industry.

The institutional adoption is real and growing. The discussions weren't about whether major financial institutions will adopt blockchain, but how and when. Banks see the value in streamlining expensive processes. Payment networks recognise the efficiency gains. The collaboration between traditional finance and crypto infrastructure, exemplified by partnerships like the one between Anzens, Encryptus, and EMURGO Labs, will define the next phase.

Stablecoins are emerging as the killer application. Beyond DeFi speculation, stablecoins are proving their utility in real-world payments. The focus has shifted from ‘Can blockchain work?’ to ‘How do we scale adoption?’ This includes addressing the practical challenges of on and off-ramps, regulatory compliance, and user experience.

The emphasis on real-world assets and tokenization reflects blockchain's expanding utility on Cardano. From real estate transactions to supply chain management, the technology is solving tangible business problems. USDA's role in this ecosystem includes not just payments but enabling programmable, efficient settlement for various asset classes.

Finally, the global nature of the summit, with attendees from around the world, reinforces that blockchain and stablecoins are borderless by design. The future of payments must be global, inclusive, and accessible. Cardano's community and technology are well-positioned to contribute to this future, offering the security, scalability, and sustainability that enterprise applications require.

 

'The inspiration for USDA came from working in the trenches of cross-border payments for years. I saw firsthand how traditional payment rails fail people who need them most. Stablecoins are blowing up the old remittance model, slashing fees from nearly 7% to under 2%, settling funds across borders in real time, and bringing instant, affordable payouts to over 100 countries. With USDA, we’re proving you don’t need SWIFT or endless banking intermediaries to move money: we deliver bank-grade compliance, money on Cardano blockchain, and global reach, right into the hands of users, businesses, and families, and that too 24/7. For millions in emerging markets, this means their hard-earned remittances actually arrive faster, in full, and ready to spend. This is how payments should work: borderless, instant, and fair.'

About author

 

Shantnoo Saxena is CEO of Anzens, the issuer of the USDA stablecoin, and Founder of Encryptus, which empowers a real-time payment settlement layer in over 80 countries. He comes with over 8 years of experience in the Web 2 payments space and has been in the crypto space for about 9 years with institutions like HTX and BitPesa. He was responsible for setting up HTX’s (Previously Huobi) operation in the UAE, Turkey, and Africa before starting Encryptus. Shantnoo has been recognised for his efforts to establish one of the first Bitcoin-based settlement models with the payment companies in 2016 for BitPesa. 

About Anzens 

Anzens is a fintech company that issues the USDA stablecoin, a digital dollar token fully backed by US dollars. Its main business activities include enabling fast, low-cost global payments and remittances, providing embedded finance solutions for partners, offering easy on- and off-ramp services for converting between USDA and fiat, and promoting financial inclusion in emerging markets. Anzens is registered with FinCEN and holds a Money Service Business (MSB) in the US.