10 Predictions for the Future of Onchain FX

As global finance shifts toward tokenization and blockchain infrastructure, foreign exchange (FX) is emerging as one of the most promising areas for transformation. With over $7.5 trillion traded daily, the traditional FX market is the backbone of global trade and investment, yet it remains encumbered by fragmentation, opacity, and inefficiencies.

Bringing FX onchain will not just replicate existing processes, but reimagine them. Here are 10 predictions for how the next five years of onchain FX could unfold:

1. FX Settlement Becomes Near-Instant

Onchain rails will reduce settlement times from T+2 days to seconds, eliminating settlement risk and freeing up trillions in trapped liquidity.

2. 24/7 Global Liquidity Becomes the Norm

Just as crypto trades around the clock, onchain FX will enable continuous global trading, untethered from banking hours, holidays, or time zones.

3. Stablecoins Emerge as FX Primitives

Stablecoins will serve as the foundational building blocks of onchain FX. Mento, which provides onchain FX infrastructure and 15 live currencies, illustrates how digital assets can become the new unit of settlement. With robust FX infrastructure, stablecoin trading will become more efficient and accessible for users around the globe.

4. Programmable FX Products Take Off

Smart contracts will automate swaps, forwards, options and hedges, reducing operational complexity and enabling new, customizable FX instruments.

5. Treasury Management Moves Onchain

Corporates will increasingly manage multi-currency balances, hedging, and cross-border payments directly onchain, streamlining treasury operations.

6. Transparent Onchain Marketplaces Emerge

More venues for onchain FX will develop, like app.mento.org, offering transparent environments that bridge traditional institutions with onchain infrastructure.

7. Improved Compliance & Risk Management 

Rather than resisting, regulators will harness the auditability of onchain FX to improve market oversight, compliance, and systemic risk monitoring.

8. Cross-Border Payments Converge with FX

The line between payments and FX will blur, as remittances, trade finance, and cross-border settlement are executed onchain in real-time, i.e. a cross-border payment transaction can automatically include the currency conversion.

9. Emerging Markets Leapfrog Legacy Rails

Onchain FX will open access to competitive rates and instant settlement in regions historically underserved by correspondent banking networks. Mento provides stable, accessible FX infrastructure for users in both developed and emerging markets. In many frontier markets, as direct FX swaps are not accessible between local currencies, people have to take a detour via the USD. Bringing these pairs onchain makes them easier to access and more liquid. 

10. Traditional FX and Onchain FX Converge

Rather than displacing incumbents, onchain FX will increasingly integrate with existing liquidity providers, creating a hybrid model that combines institutional depth with blockchain efficiency.

Onchain FX is not a distant vision, it’s an emerging reality. The coming years will see a convergence of traditional and digital infrastructure, creating faster, fairer, and more inclusive markets.

As institutions, corporates, and users experiment with new models, the transformation of FX could become one of the most impactful shifts in global finance. Mento is an innovator of what’s possible: building stable, programmable, and transparent currency infrastructure that can accelerate the future of onchain FX.