Crypto Payment Processor BitPay Now Supports Settlement In Stablecoins

Announcements, News | October 16, 2018 By:

Blockchain payments firm BitPay is now allowing merchants to receive settlement in two USD-pegged stablecoins, Gemini Dollar (GUSD) and Circle Centre’s USD Coin (USDC).

BitPay, the largest crypto payment processor with a customer base of 20,000 businesses globally, announced on Monday that the addition of stablecoins will allow merchants in 190 countries to accept international payments without relying on costly, time-consuming wire transfers. Bitpay said both GUSD and USDC tokens are great for fast, cross-border settlements and reduces the risk of price volatility since their value are pegged to the value of the US dollar at a 1:1 ratio.

“Because GUSD and USDC tokens exist on borderless blockchains, BitPay can now settle these US-dollar pegged stable coins to merchants, wherever they are in the world – even if they don’t have bank accounts,” the company said. “And since each GUSD and USDC stable coin is tied to one US dollar, there is no volatility risk for the business receiving the settlement.”

GUSD, which was launched last month by Gemini founders Cameron and Tyler Winklevoss, is structured as an ERC-20 token on the ethereum blockchain. The token has been approved by the New York Department of Financial Services (NYDFS).

USDC was based on the open source fiat stablecoin framework developed and governed by Centre, an open-source initiative from cryptocurrency platform Circle.

Previously, BitPay merchants without supported bank accounts, could only receive settlements in bitcoin or Bitcoin Cash. While these cryptos dramatically reduce the friction, cost, and time of cross-border business to business payments, they are susceptible to price volatility.

“BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world,” said Stephen Pair, co-founder and CEO of BitPay. “The introduction of the USDC and GUSD stable coin offers BitPay customers a new alternative to holding bitcoin and Bitcoin Cash by offering a stablecoin option.”