Germany used USDC▲$1.00 stablecoin on Algorand in a Syria aid payments pilot that reportedly cut transfer costs by up to 73%.
Stablecoin payments helped Germany to conduct its experiment with humanitarian assistance transfers to Syria in a cheaper and more transparent manner, according to PoliSync, the cross-border payments, and policy initiative supported by the German authorities.
In a blog post, the German Federal Foreign Office sponsored a study program on a project run via the GIZ Stabilization Platform over 18 months to test the use of the USDC stablecoin in sending humanitarian and stabilization funds to Syria.
Per the blog post, the pilot program sent stablecoins from the German Federal Foreign Office to the German Embassy in Damascus via blockchain rails, with on-chain settlement done within less than two hours.
Read also: USDC Perspectives 2026: Can USDC Become the World’s Leading Stablecoin?
According to PoliSync, blockchain payments technology allowed reducing transfer costs from about 7%, as was typical previously, down to just 1%, or by 73% in the stablecoin framework.
The project tested on-ramping, currency conversion, on-chain settlement and off-ramping with multiple virtual asset service providers, according to the project overview.
Germany Tests USDC Stablecoin in Hard Payment Corridor
Syria still poses challenges for conventional finance due to war, sanctions, poor banking connectivity, and inadequate payment infrastructure over the past several years.
As PoliSync explained, this initiative has been created to examine if stablecoin networks can satisfy institutional and operational criteria in an area considered dangerous.
The group said its research included 39 stakeholder interviews across humanitarian organizations, technology providers and regulatory experts. It also mapped more than 120 relevant organizations and carried out field research in Syria.
Overall, according to PoliSync, during the experiment, blockchain transactions offered end-to-end visibility of transactions via on-chain data as part of transparency for humanitarian purposes.
PoliSync said the results give the German Federal Foreign Office evidence to decide whether to scale the system. Any broader rollout would still require coordination with regulators, humanitarian organizations, other donors and local off-ramp providers.
Read more: Why Millions in USDT and USDC Are Suddenly Being Unfrozen on TRON and Ethereum
