Faster Than Bank Wires: Why Stablecoin Transfers Are Changing the Game
In a world powered by real-time everything, from streaming to shopping, money transfers have only just gained their footing in the present. The notion of waiting 2 to 5 business days for an international wire is simply out of the question, particularly for businesses that are operating cross-border.
That's where stablecoins fit in. At OpenDue, we make global USD transfers as fast and easy as sending an email.
What Are Stablecoins?
Stablecoins are a type of cryptocurrency that is designed to have a stable value, usually pegged to a traditional fiat currency, such as the US dollar (USD). Some common examples of stablecoins are USDC, USDT, and DAI.
Stablecoins, which utilise cryptocurrency technology, provide price stability, unlike other types of cryptocurrency assets like BTC or ETH, where prices can be volatile. This means that stablecoins can be useful as a payments mechanism, for cross-border transfers, settlements, and business transactions.
The Transition to Stablecoins for Businesses
Traditional international payments using wire transactions cost time and money, and involve many intermediaries. Here, banks or other institutions can take two to five business days to settle a transaction, often with unpredictable fees and Foreign Exchange spreads. This can be problematic for businesses that operate in global economies or are managing cash flow in real-time.
Stablecoins can remove a number of these pain points by providing:
- Instant Transfers: Payments can settle in minutes, often times in real-time, even cross-border.
- Lower fees: Fees can be significantly lower or in some cases free compared to a SWIFT payment or credit/debit card networks.
Meet the two types of transfers with stablecoins:
- 24/7 Access: No more waiting for banks to be open or managing the delays that come with transactional clearing.
- Transparent tracking and tracing: The benefit of blockchain is that you can track in real-time and have a verifiable transaction history.
This is why global companies, fintechs and marketplaces have begun to leverage stablecoin-based solutions to improve payments and treasury management.
How It Works with OpenDue
OpenDue simplifies and democratizes stablecoin transfers through a robust API that allows businesses to:
- Establish compliant wallets with integrated KYC/KYB verification.
- Send and receive stablecoins on multiple blockchains.
- Monitor their own transactions and stablecoin balances instantly.
- Connect fiat on/off-ramps to convert between stablecoins and local currencies.
With just a few lines of code, you can integrate global money movement into your application or platform, eliminating the layers and inefficiencies of traditional banking rails.
With everything else in shopping and streaming happening instantly, there is no reason that money can lag anymore. Stablecoins are revolutionising the way money is transferred, offering seamless transactions with speed, cost efficiency, and increased access.
