Coinify adopts Stablecoin Settlement Service
Over the past 4 years, digital merchants have faced increasing challenges, navigating a difficult banking environment. In particular, those labelled medium or high-risk struggle to get past the red tape. Coinify has introduced Stablecoin Settlements Service in order to offer a smooth and secure alternative, where Coinify's client base can benefit from the instant settlement in UDDC, USDT, and EUROC stablecoins.
Simple, Seamless & Secure
Our Stablecoin Settlements allow processing settlements in the most popular stablecoins USDC, USDT and EUROC on the Ethereum blockchain. Eliminating the need for extensive knowledge of the crypto space as Coinify handles the process from A to Z. The Stablecoin Settlements are subject to AML, SOF PSOF processes and checks, carried out by Coinify’s in-house compliance team. Available exclusively via Coinify Payments Suite, you can now offer your high-valued merchants, a simple, seamless and secure Stablecoin Settlement solution.
“We see a fast uptake of Stablecoin Settlements amongst our regular merchants looking to get faster international settlements in USD,” says Coinify Sales Manager Michaela Becksson.
What is Stablecoin?
The cryptocurrency industry has faced several challenges in 2022. Yet, despite the challenges, the stablecoins USDT, USDC, as well as EUROC, saw significant growth in the market in 2022 by becoming a defacto settlement currency of the crypto economy today.
Stablecoins are price-stable digital currencies backed by a fiat currency such as the Euro or US Dollar. Stablecoins are designed to reduce volatility. Before Stablecoins, if you wanted to swap your coins, there was no way for crypto holders to move into a fiat-backed asset without exiting the crypto ecosystem altogether. This is where stablecoins stepped in. Stablecoins are used by companies across the world to speed up cross-border payments by using them in conjunction with DeFi. Stability is becoming more and more important and companies are increasingly turning to global reserve currencies for payments and prefer to use a currency that is pegged to global reserve currencies.
Continuous Stablecoins growth in payments
Regardless of what is happening in the cryptocurrency markets, we are seeing exponential interest in stablecoins as a payments vehicle growing day by day. Major Payment Service Providers (PSPs) are increasingly using stablecoins to settle with their merchants, due to the faster processing times and lower costs compared to using traditional fiat settlement rails. For their part, merchants are choosing either to settle directly in stablecoins or to off-ramp onto fiat. These innovative PSPs are also exploring whether they can onboard crypto payments into their own service wrappers. For many PSPs, the aim now is to be able to integrate cards, alternative payments, and crypto payments in a single API, according to Finextra.
According to data from CoinMetrics, over $7 trillion in value has been settled with stablecoins in 2022. This is a significant increase from the $6 trillion settled in 2021 and the $1 trillion settled the year before. Some analysts predict that the value settled with stablecoins could reach as much as $9 trillion in 2023, second only to Visa, which processes around $12 trillion in value per year, while Mastercard, the second-largest card issuer in the world, processed around $2.2 trillion in value so far in 2022, falling behind the combined settlement value of the seven largest stablecoins.
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