LemFi partners BVNK to speed remittance settlements

LemFi has partnered with BVNK to move its cross-border settlement onto regulated stablecoin rails, affecting money transfers used by about two million customers.

The arrangement shifts the settlement layer behind LemFi's remittance service away from traditional correspondent banking and SWIFT-based processes, which can take several days and add fees through multiple intermediaries. Customers will continue to use the app in the same way, while funds are settled through stablecoin infrastructure in the background and paid out in local currency at the receiving end.

The change applies across transfer corridors linking the UK, Europe, Australia and North America with recipients in Africa, Asia and Latin America. LemFi serves diaspora communities sending money home and has been expanding beyond remittances into a broader set of financial services.

The move places LemFi among a growing group of payments firms using stablecoins as part of mainstream financial infrastructure rather than as consumer-facing crypto products. It cited industry estimates showing real-world stablecoin payment volumes reached USD $7.4 trillion over the past 12 months, while analysts expect stablecoins to grow from about 3% of the cross-border payments market to as much as 20% within a decade.

LemFi linked the partnership to a stablecoin settlement strategy it outlined after receiving a strategic investment from Tether, intended to support the use of USD₮ as a settlement layer across its corridors.

Ridwan Olalere, Co-Founder and Chief Executive Officer of LemFi, described the rationale for the change in settlement infrastructure.

"The money that crosses borders still moves on rails built decades ago: slow, expensive, and quietly taxing the people who can least afford it. We're rebuilding those rails. Stablecoins let us settle near-instantly and reduce costs; BVNK provides the infrastructure to do so safely and at scale. It's the start of something bigger: the financial system the diaspora economy should have had all along," said Ridwan Olalere, Co-Founder and Chief Executive Officer of LemFi.

Cost pressure

The economics of remittances remain a central issue for migrant workers and their families. According to World Bank figures cited by LemFi, the global average cost of sending remittances stood at 6.36% in the third quarter of 2025, more than double the United Nations Sustainable Development Goal target of 3% by 2030.

LemFi said meeting that target would return roughly USD $20 billion a year to families globally. It argues that faster settlement and fewer intermediaries offer one of the clearest ways to narrow that gap, particularly in corridors where transaction costs remain stubbornly high.

BVNK provides the stablecoin infrastructure supporting the settlement process. LemFi chose the group for its regulatory standing and geographic reach, noting that BVNK holds more than 25 licences and regulatory approvals across the UK, Europe and the US, with coverage in more than 130 countries.

The stablecoin element is designed to remain invisible to end users. Customers do not need to buy or hold digital assets, and recipients are still paid in local fiat currency. That approach reflects a wider effort among financial technology companies to use blockchain-based settlement tools without exposing retail users to the complexity or volatility associated with crypto markets.

For LemFi, the deal also fits a broader expansion drive. The company has been building out payments, credit, savings and connectivity products for migrants and other internationally mobile users, while increasing its regulatory footprint in the UK, Europe, North America, Australia and selected markets in Africa and Asia.

Earlier this year, LemFi selected London as its global headquarters and said the move was backed by a GBP £100 million UK investment commitment. The latest agreement adds an infrastructure partner as it scales settlement across more markets.

Stablecoin settlement will be rolled out market by market, and only where central bank and regulatory frameworks permit it. That measured approach reflects continuing differences in how national authorities treat stablecoins, even as payments companies test them for commercial use in cross-border transfers.

Chris Harmse, Co-Founder and Chief Business Officer of BVNK, said the partnership reflects a wider shift in how remittances are processed.

"Stablecoins are becoming the base layer for how the world moves money, and remittances are one of the clearest places that shift changes lives. LemFi has built deep trust with the communities it serves across Africa, Asia and beyond. Powering their settlement with our infrastructure means faster, cheaper transfers reach real families - exactly the kind of impact we built BVNK to deliver," said Chris Harmse, Co-Founder and Chief Business Officer of BVNK.