Outbound Payments Weekly: USDT Used in Illegal FX Case, RMB Payment Share Rises, ZTO Payments Cross-Border Debut

·

The global fintech landscape is evolving rapidly, with cross-border payments at the forefront of innovation, regulation, and strategic expansion. This week’s roundup captures pivotal developments—from regulatory crackdowns on crypto-facilitated foreign exchange to the resurgence of the Chinese yuan in international payments and new milestones in cross-border financial infrastructure.

Regulatory Crackdown: USDT Involved in First-Ever Illegal FX Conversion Case

A landmark case in China has drawn widespread attention after three young individuals were sentenced for using USDT (Tether) as a medium for illegal foreign exchange conversion. The trio facilitated nearly 30 million RMB in FX trades through over 650 transactions, leveraging the perceived anonymity and cross-border liquidity of stablecoins.

Prosecutors in Jianhu County emphasized that while virtual assets themselves aren’t illegal, using them to circumvent capital controls constitutes illegal business operations. The defendants received prison terms ranging from one and a half to five years, along with fines.

👉 Discover how digital assets are reshaping global remittance—legally and securely.

This case marks one of the first known prosecutions where USDT was used as a tool for unauthorized forex trading, signaling tightening scrutiny over crypto-enabled capital flows. Regulators are increasingly focused on the intersection between decentralized finance and traditional financial compliance.

RMB Regains Momentum: Now Fourth-Largest Global Payment Currency

The Chinese yuan (RMB) has reclaimed its position as the fourth-most used currency in global payments, according to SWIFT data released in December 2024. In November, RMB accounted for 3.89% of global payment volumes, up from previous months.

When excluding intra-Eurozone transactions, the yuan ranked fifth at 3.02%, highlighting its growing role in international trade and investment settlements. This rebound follows sustained policy efforts to promote RMB internationalization, including expanded currency swap lines and cross-border payment infrastructure.

Factors driving this growth include:

The resurgence reflects both market demand and strategic policy alignment aimed at reducing reliance on dominant reserve currencies.

ZTO Payments Launches First Cross-Border Logistics Payout

ZTO Express’s financial arm, ZTO Payments, has successfully executed its first international logistics payment. On December 13, a Shenzhen-based logistics firm transferred funds to an overseas supplier via ZTO’s new cross-border payment solution.

This end-to-end transaction marks a significant step in addressing long-standing pain points in the logistics sector:

ZTO Payments now offers tailored solutions for logistics companies, enabling faster, more transparent foreign payouts—potentially reshaping how mid-sized freight operators manage international cash flow.

China Expands Inbound Payment Accessibility

To boost inbound tourism and business travel, Jiangsu Province has rolled out a comprehensive plan to improve foreign payment access. Key initiatives include:

These measures align with broader national efforts to make China more accessible to international visitors—a trend expected to continue into 2025.

Meanwhile, Octopus (八达通) has expanded its reach into mainland China, allowing users to scan WeChat Pay QR codes via their Octopus UnionPay card. This integration enhances convenience for Hong Kong travelers while promoting greater payment interoperability across regions.

Global Payment Innovations and Strategic Partnerships

🌏 UnionPay Strengthens ASEAN Ties

UnionPay International and Laos’ national payment network LAPNet have launched QR code interoperability. Users of Cloud QuickPass and other compatible wallets can now pay seamlessly at merchants across Laos—boosting regional financial inclusion.

💸 Wise Powers Morgan Stanley’s Cross-Border Settlements

In a major institutional breakthrough, Morgan Stanley has integrated Wise Platform to offer FX settlement services to corporate clients. This makes Morgan Stanley the first investment bank to leverage Wise’s infrastructure for enterprise-level cross-border transfers—highlighting growing trust in fintech-native systems.

💱 Silverlake & Ria Enable Direct-to-WeChat Remittances

Tenpay Global (Tencent) and Ria Money Transfer have partnered to allow global users to send money directly into WeChat Pay balances or linked bank accounts. The service leverages Ria’s global distribution network and Tencent’s massive user base, creating a seamless corridor for diaspora remittances into China.

Central Banks Push Instant and Inclusive Payment Systems

🇮🇩 Indonesia Tests NFC-Based QRIS Tap

The Indonesian central bank is piloting QRIS Tap, an NFC-enabled version of its national QR standard, for public transit in Jakarta. Set for full rollout in Q1 2025, it aims to modernize urban mobility payments.

🇺🇸 FedNow Updates Pricing Ahead of 2025 Expansion

The Federal Reserve’s FedNow instant payment system saw transaction volume grow to over 414,000 between January and August 2024, with participating institutions nearing 1,000. A revised pricing model will take effect January 1, 2025, supporting long-term sustainability.

🇬🇧 UK Regulator Caps Visa/Mastercard Cross-Border Fees

The Payment Systems Regulator (PSR) plans to cap interchange fees charged by Visa and Mastercard on cross-border transactions into the UK—a move expected to save businesses £150–200 million annually post-Brexit.

Fintech Funding & M&A Surge

These moves reflect strong investor confidence in scalable payment infrastructure and embedded finance models.

Frequently Asked Questions (FAQ)

Q: Is using USDT for currency exchange illegal?
A: While holding USDT isn't illegal, using it to bypass foreign exchange controls or conduct unlicensed money transmission violates financial regulations in many jurisdictions—including China.

Q: Why did the RMB rise in global payment rankings?
A: Growth stems from increased trade usage, CIPS expansion, and policy support for RMB internationalization. Offshore liquidity channels and bilateral swaps also contribute.

Q: How does ZTO Payments differ from traditional banks in cross-border transfers?
A: ZTO focuses on logistics-specific needs—offering faster settlements, lower costs, and integrated tracking tailored for freight companies operating globally.

Q: What impact will Wise’s partnership with Morgan Stanley have?
A: It validates fintech platforms as reliable partners for top-tier banks, potentially accelerating adoption of non-bank infrastructure in institutional finance.

Q: Can Octopus users outside Hong Kong benefit from WeChat Pay integration?
A: Yes—any user with an Octopus wallet linked to the Octopus UnionPay card can now make payments at millions of WeChat Pay merchants across mainland China.

👉 See how next-gen payment platforms are transforming cross-border commerce.

Key Trends Shaping 2025 Cross-Border Payments

  1. Regulatory Clarity on Crypto-Fiat Gateways: Authorities are drawing clearer lines around permissible uses of stablecoins.
  2. Rise of Instant Payment Networks: From FedNow to QRIS Tap, real-time rails are going global.
  3. Bank-Fintech Collaboration: Institutions like Morgan Stanley are embracing third-party infrastructures for agility.
  4. Merchant-Centric Solutions: Subsidized processing and multi-wallet support enhance inbound tourism economies.
  5. Consolidation in B2B Payments: M&A activity signals maturation in the supply chain and cross-border payment space.

As borders become less relevant in digital finance, success will depend on balancing innovation with compliance—and building ecosystems that serve both consumers and enterprises.

👉 Explore secure, fast, and compliant digital asset solutions built for global markets.

Core Keywords:

All external links except OKX have been removed per guidelines.