International money transfers are no longer limited to traditional banking systems. While SWIFT (Society for Worldwide Interbank Financial Telecommunication) has been the backbone of global payments for decades, digital assets like USDC (USD Coin) are transforming how people and businesses send money across borders.

Whether you’re sending funds to family abroad, paying international contractors, or handling business transactions, understanding the differences between USDC and SWIFT can help you choose the best method for your needs.

Read also: USDC vs. other stablecoins: what's best for global transactions?

Key differences between USDC and SWIFT

1. Speed of transfer

• USDC: Near-instant transactions, typically completed within minutes.
• SWIFT: Payments take 1–5 business days, depending on intermediary banks and countries involved.

2. Transaction fees

• USDC: Low fees, often limited to a small blockchain network charge.
• SWIFT: High costs due to intermediary bank fees, foreign exchange charges, and recipient bank fees.

Read also: USDC vs. SWIFT: Which is the better way to send money abroad?

3. Requirements

• USDC: Can be sent or received by anyone with a cryptocurrency wallet, making it possible to transact without relying on a traditional bank account.
• SWIFT: Requires both the sender and receiver to hold active bank accounts, which limits usage for individuals without access to formal banking.

4. Currency conversion

• USDC: Pegged 1:1 to the US dollar, so there’s no need for conversion when transferring USD to USDC.
• SWIFT: Currency conversion is common and often expensive, with risks tied to fluctuating exchange rates.

Why choose USDC?

• Faster settlements: Receive money in minutes instead of waiting days.
• Lower costs: Avoid hefty bank charges and reduce transfer expenses.
• Greater flexibility: Send and receive payments without needing a bank account.
• Stable value: Pegged to the US dollar, reducing volatility compared to other cryptocurrencies.

Read also: ACH vs SWIFT: Which is better for USD transfers to Egypt?

Why choose SWIFT?

Despite its limitations, SWIFT still plays a vital role in global finance. It may be the better option for the following reasons:

• Wider acceptance: Supported by over 11,000 banks and institutions worldwide.
• Large transactions: Ideal for businesses moving large sums under regulated banking systems.
• Regulatory oversight: Offers compliance with international banking laws and security frameworks.
• Cross-currency transfers: Facilitates direct transfers between different currencies globally.

Final thoughts

USDC and SWIFT serve different purposes. USDC is faster, cheaper, and more accessible, making it attractive for freelancers, startups, and digital-first businesses. SWIFT, on the other hand, remains valuable for traditional businesses, high-value transactions, and transfers requiring strong regulatory backing.With Grey, you can easily convert your payments to USDC, send and receive funds seamlessly, and enjoy the benefits of modern cross-border transfers.

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