By
Chimamanda U. Martha
April 25th, 2024
BitPay customers may now receive settlement in Gemini Dollar (GUSD) and USD Coin (USDC), USD-pegged cryptocurrency stablecoins, without relying on costly, time-consuming wire transfers.
Stablecoins, or cryptocurrencies pegged to a stable asset, such as gold or fiat currencies, are causing numerous discussions. While crypto markets remain incredibly volatile and unpredictable by nature, stable coins were designed to remain the same.
However, they can be prone to failure due to volatility and upkeep required in many cases. Tether(USDT), the largest stablecoin by market capitalization, has faced accusations of being unable to provide audits for their reserves while continually printing millions. But some companies believe in the future of stablecoins and support them despite their controversial nature.
On monday, the largest global blockchain payments provider BitPay announced that the company now supports stablecoins for merchant settlement options, which means merchants are able to receive settlements in Gemini Dollars (GUSD) and Circle USD Coin (USDC), stablecoins pegged to the US dollar.
BitPay Introduces Stable Coin Settlements in Gemini Dollars and Circle USD Coin | The BitPay Blog
https://t.co/9SgYjphqmr @GeminiTrust @circlepay #Blockchain #StableCoins pic.twitter.com/JhYT733OdR— BitPay (@BitPay) October 15, 2018
BitPay is the leading Bitcoin payment service provider founded in 2011. Based in Atlanta, Georgia, the company has offices in North America, Europe, and South America. BitPay enables businesses to send and receive cross border payments faster than through traditional bank wires, and makes it possible for consumers to manage digital assets with the BitPay Wallet and turn digital assets into dollars with the BitPay Prepaid Visa® Card.
Support for stablecoins adds new settlement options for BitPay merchants and businesses who were able to receive settlement only in Bitcoin earlier.
According to the press release, customers now have the option to take their settlement proceeds in Bitcoin, Bitcoin Cash, a bank transfer, or a stable coin (USDC or GUSD). Settlement by bank transfer is initiated the next business day and cryptocurrency is settled the next day, 365 days a year. As BitPay said, “customers can skip costly, complicated cross-border wire transfers and receive or send international payments with Bitpay with accuracy, reduced fraud risk and quick bank settlement.”
Stephen Pair, co-founder and CEO of BitPay, commented on the initiative:
“BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world. The introduction of the USDC and GUSD stable coin offers BitPay customers a new alternative to holding Bitcoin and Bitcoin Cash by offering a stable coin option.”
GUSD and USDC are Ethereum (ETH) blockchain-based stablecoins issued by regulated crypto exchanges Gemini and Circle. GUSD was approved by the New York Department of Financial Services (NYDFS), the architect of the stringent “BitLicense” framework. Both the coins are tied to the value of the U.S. dollar at a 1:1 ratio, which is supposed to reduce the risk of volatility.
BitPay is not the first company to support stablecoins. Recently, Hong Kong-based cryptocurrency exchange OKEx said that it would add support to trade four new stablecoins pegged to the U.S. dollar. OKEx is planning to list such coins as TrustToken’s TrueUSD (TUSD), Circle’s USDCoin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard Token (PAX).