V1I3P10

A Cloud – Native Security and Regulatory Compliance Framework for Stablecoin – Based Cross- Border Financial Infrastructure

Opeyemi Alao^1*

Abstract

Stablecoins are poised to increasingly become the backbone assets for a cross-border financial architecture enhanced with real-time capability settlement and lower transaction costs, not to mention additional programmability of monetary functionality. However, integrating stablecoins into the global payment system will create a wide spectrum of cybersecurity, operational, and regulatory compliance risks due to the existence of different legal regimes and dissimilar supervisory oversight. These risks have largely been dealt with through external controls or subsequent regulatory enforcement, limiting scalability and systemic resilience. The study contributes to literature by proposing a novel cloud-native security-and-regulatory-compliance framework, which embeds into the architectural core of stablecoin-based cross-border payment systems the zero-trust security, automated compliance-by-design, federated identity management, and continuous monitoring. Such a framework is generated through qualitative analyses from relevant regulatory guidance, academic research, and practices in the industry on how the cloud-native architectures can operationalize regulatory obligations-such as AML/KYC, reserve transparency, and operational resilience-into continuous, machine-enforceable controls across jurisdictions. The results clearly show that integrating security and compliance into the architecture itself enables superior scalability, auditability, and regulatory alignment at a reduced cost of systemic risk and enforcement. This research moves compliance away from being a reactive obligation to an inherent capacity of the system, thus providing a practical and policy-relevant route for financial institutions, fintech firms, and regulators seeking to develop secure and large-scale deployment of stablecoins. It offers original insight into how cloud-native design can plug financial innovation into regulatory integrity in a progressively forming global payments ecosystem.

Keywords:

Stablecoins; Cross-Border Payments; Cloud-Native Security; Regulatory Compliance; Zero Trust Architecture; AML/KYC; Financial Infrastructure; Digital Assets; FinTech Regulation