Understanding the 1-to-1 Stablecoin to USD Peg

We're excited to introduce a new feature that simplifies stablecoin payments for your customers and provides greater control over exchange rate fluctuations: the 1-to-1 Stablecoin to USD Peg for deposits.

This feature allows you to offer your end-users an exact 1-to-1 exchange rate when they choose to pay with a USD-pegged stablecoin (e.g., USDT, USDC) for a USD-denominated quote.

How it Works

When a customer initiates a payment request in USD and selects a stablecoin as their payment method, they will be presented with a fixed 1-to-1 exchange rate. For example, if the quote is for $50 USD, the customer will be instructed to send exactly 50 units of the chosen stablecoin (e.g., 50 USDT).

During the transaction, if there's a minor difference between the stablecoin amount received and the exact USD equivalent due to market fluctuations, our system automatically handles this. The merchant (you) will be debited for this small difference, ensuring the end-user always pays the precise USD amount quoted. We will credit your USD account with the pegged rate and invoice you the difference at the end of each month. 

This eliminates the need for your customers to worry about minor crypto exchange rate variations, leading to a smoother and more transparent payment experience.

Benefits for Your Business

• Improved User Experience: Your customers will appreciate the predictability and simplicity of paying an exact USD amount with stablecoins.
• Reduced Payment Friction: A fixed 1-to-1 rate can lead to higher conversion rates for stablecoin payments.
• Enhanced Transparency: Clear pricing helps build trust with your end-users.

How do you know which payments were completed at the 1:1 peg

In the webhook response you receive there will be additional details related to the 1 to 1 peg. You will credit the User with the paid currency actual found in "pegstablecoin details".

"pegStablecoinDetails": {
      "paidCurrency": {
        "currency": "USDC",
        "amount": 100,
        "actual": 100
      },
      "pegRateAdjustmentFee": {
        "currency": "USD",
        "amount": -0.05,
        "actual": -0.05
      },
      "exchangeRate": {
        "base": "USDC",
        "counter": "USD",
        "rate": 1
      }
    },
    "pegged": true
  }

Key Considerations

Please keep the following in mind regarding the 1-to-1 Stablecoin to USD Peg:

• Activation Required: This capability is not automatically enabled for all accounts. If you wish to utilize this feature, please reach out to your Account Manager to discuss enablement.
• Account and Merchant ID Specific: When enabled, this feature is applied at the Account and Merchant ID level. Your Account Manager will guide you through the necessary details.
• Over/Under/Late Payments: For any payments that are overpaid, underpaid, or paid late, our standard processing at the spot exchange rate will apply. This feature specifically addresses the initial quoted exchange rate for stablecoin payments.