In the same way that Bitcoin revolutionised the financial landscape, stablecoins are here to revolutionise international payments. And they’re ready to go.
We know that in the high-stakes world of global commerce, every second and every cent counts. Now there is a financial technology that can slice through the bureaucratic red tape of international payments, eliminating weeks of waiting and thousands in unnecessary fees.
Welcome to the stablecoin revolution – a game-changing innovation that's quietly rewriting the rules of global business transactions.
The hidden cost of traditional payments
Traditional international payments can often feel like navigating a labyrinth blindfolded. Banks and financial intermediaries create a complex web of fees, delays, and opacity that can transform what should be a straightforward transaction into a costly, time-consuming nightmare.
Multinational corporations have long accepted these inefficiencies as an unavoidable cost of doing business – until now.
Enter stablecoins
Stablecoins represent more than just a technological upgrade; they're a strategic weapon for forward-thinking businesses. Unlike volatile cryptocurrencies, these digital currencies are anchored to stable assets like the Euro or U.S. dollar, providing a rock-solid foundation for international transactions.
Breaking down the benefits:
- Transforming cost structures
Stablecoins don't just reduce costs – they fundamentally reimagine them. By eliminating intermediaries, businesses can slash transaction fees by up to 80%. For a mid-sized multinational, this could mean millions of dollars saved annually, redirected towards innovation, expansion, or talent acquisition.
- Lightning fast transactions
Where traditional bank transfers crawl, stablecoins sprint. A transaction that once took 3-5 business days can now be completed in minutes. Offering a serious competitive advantage - imagine closing an international deal before your competitors have even processed their paperwork.
- Predictability in an unpredictable world
Currency volatility has long been the bane of international business. Stablecoins provide a predictable, consistent value that allows financial planners to create robust, long-term strategies without constantly hedging against exchange rate fluctuations.
The transparency revolution
Blockchain ensures that both sides of the transactions are fully in the know, at all times. Every single transaction is recorded on a distributed ledger, creating an immutable audit trail.
For compliance officers and financial controllers, this means real-time tracking, instant verification, and dramatically reduced risk of fraud.
Offering a new paradigm of business expansion
Offering a passport to global business dealings, small and medium enterprises can now compete on an international stage without the traditional barriers of complex banking relationships or prohibitive transaction costs.
Despite the technological sophistication, the most significant breakthrough of stablecoins is fundamentally human. They restore trust in a financial system that has become increasingly opaque and complex. By providing clear, instantaneous, and secure transactions, stablecoins are rebuilding the most critical currency in business: confidence.
Getting started with stablecoins in business
How stablecoins actually work
Before the “how”, let’s explore the “what”. At their core, stablecoins are digital tokens that operate on blockchain networks but maintain a stable value by being pegged to traditional assets. Unlike Bitcoin or Ethereum, which can fluctuate wildly in price, stablecoins aim to maintain a consistent value, typically 1:1 with a fiat currency like the Euro or US dollar.
The stability is maintained through one of three primary mechanisms:
- Fiat-collateralized: Backed by reserves of traditional currency held by a custodian
- Crypto-collateralized: Backed by other cryptocurrencies with excess collateral to account for volatility
- Algorithmic: Use smart contracts to automatically expand or contract the supply based on demand
For business purposes, fiat-collateralized stablecoins offer the most straightforward and trusted solution, essentially functioning as a digital version of the backing currency with blockchain-powered benefits.
Popular stablecoins for business transactions
Several stablecoins have emerged as leaders in the business space:
US dollar-backed stablecoins:
- USDC (USD Coin), USDT (Tether), USDP (Pax Dollar)
Euro-backed stablecoins:
- EUROC (Euro Coin), EURS (Stasis Euro), agEUR (Angle Euro)
Crypto-backed stablecoins:
- DAI (DAI), FRAX (Frax), USDD (USDD)
Multi-currency backed stablecoins:
- XSGD (Xfers Singapore Dollar), CAUD (TrueAUD), NZDS (New Zealand Dollar Stablecoin)
For most business applications, USDC and USDT offer the most immediate utility due to their widespread acceptance and established compliance frameworks. Be sure to research the ones you are interested in before diving in.
Getting started with the Tap App
The Tap app provides one of the most streamlined onboarding experiences for businesses looking to leverage stablecoins. Get in touch with us here, and an account manager will make contact and discuss how stablecoins can assist with your business needs.
We’ll run you through the entire process – from concept to implementation – explaining everything along the way and ensuring all your questions are answered.
Looking forward
As blockchain technology continues to mature, stablecoins are poised to become more than an alternative – they'll become the standard. Forward-thinking businesses aren't just adopting this technology; they're positioning themselves at the forefront of a global financial transformation.
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