Bitcoin Payment Processor BitPay added support for three US dollar-backed stablecoins to provide merchants and businesses more option to receive the settlement for their payments. It has added support for Circle’s USD Coin (USDC), the Gemini Dollar (GUSD) and Paxos Standard Token (PAX).
This will enable consumers to spend the volatility-free stablecoins at businesses around the world like Microsoft and Avnet, along with the speed and flexibility of cryptocurrencies and also eliminate costs and delays of bank transfers or wires typical of other solutions.
Stablecoin transactions are verified by a decentralized network and recorded on an immutable public ledger, providing transparency and eliminating traditional payment fraud associated with credit cards.
All the three stablecoins supported by BitPay are ERC20-based stablecoins and are backed 1:1 by the value of US dollars held at US-located FDIC-insured banks. It allows users to send and receive US dollars over the Ethereum blockchain.
Holders can redeem these stablecoins directly for US dollars without the risk of value change or price volatility for holders. The new settlement option using stablecoins is particularly valuable for overseas businesses that have limited access to a currency as stable as the U.S. dollar.
The new option will give the merchants and businesses a settlement solution that does not rely on traditional bank wires or the volatile cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH) already supported by BitPay. The stablecoins represent real US dollar holdings as tokens on blockchains.
BitPay was granted BitLicense, the license of virtual currency activities, by the NYDFS in mid-July to facilitate payment in Bitcoin between merchants and consumers in the State of New York.
BitPay is the first blockchain payment processor and the first non-exchange to secure a virtual currency license from the NYDFS.
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