Today we're excited to announce a new way for BitPay merchants to receive settlements for their Bitcoin and Bitcoin Cash payments: Gemini Dollars (GUSD) and Circle USD Coin (USDC).
Meet GUSD and USDC
Gemini Dollars (GUSD) and Circle USD Coin (USDC) are both results of efforts by Gemini and Circle (both regulated cryptocurrency exchanges) to represent real US dollar holdings as tokens on blockchains.
The value of each of these coins is pegged to the value of the US dollar at a 1:1 ratio, so there's no risk of value change or price volatility for holders. Holders can redeem these "stable coins" directly for US dollars via Gemini (for GUSD) or Circle (for USDC) exchange accounts.
Why this matters for BitPay merchants
BitPay makes accepting cryptocurrency easy for businesses. Many of our clients can use BitPay to accept Bitcoin or Bitcoin Cash payments from customers, then receive direct bank transfers in their own local currencies, from pounds to dollars to euros.
Until now, though, BitPay merchants without supported bank accounts (particularly in emerging markets like Asia or South America) could only receive settlements in Bitcoin or Bitcoin Cash. These cryptocurrencies are great for fast, cross-border settlements, but they do carry a risk of price volatility. When Bitcoin or Bitcoin Cash prices change, this can be hard for businesses that don't have reliable access to cryptocurrency exchanges.
Because GUSD and USDC tokens exist on borderless blockchains, BitPay can now settle these US-dollar pegged stable coins to merchants, wherever they are in the world – even if they don't have bank accounts*. And since each GUSD and USDC stable coin is tied to one US dollar, businesses are protected from market volatility risk typically associated with bitcoin and other cryptos.
Getting started with GUSD and USDC settlements
All of BitPay's merchants can start receiving all or some of their BitPay settlements in the form of GUSD or USDC, starting today.
It's easy to get started. All you'll need is a wallet compatible with ERC20 tokens. Follow these steps in your BitPay account to add your new settlement preferences:
1. In your BitPay dashboard, select Settings, then Settlement.
2. Click Edit next to Cryptocurrency Address.
3. Add your ERC20 wallet address for either USDC or GUSD.
4. Save your settlement settings and confirm them in the email you receive from BitPay.
Once you do that, you're all set! Just like all our cryptocurrency settlement options, we issue settlement for GUSD and USDC within 24 hours of when a merchant gets a sufficient settlement balance (20 GUSD or 20 USDC). The blockchain doesn't have bank holidays, so we send cryptocurrency settlements 365 days a year.
To learn more about how to redeem GUSD for US dollars*, check out the resources provided by Gemini (for GUSD) and Circle (for USDC):
We are excited to open up this new settlement option to BitPay's merchants around the world. This is just another way that blockchain technology is making payments work better and faster in a global marketplace.
Not using BitPay yet? What are you waiting for? You can sign up now. Or subscribe to the BitPay blog so we can let you know about new tools we're building to make your payments better.
*While anyone can hold GUSD or USDC, you will need a US dollar bank account if you do want to redeem GUSD or USDC for dollars. If you do not have a bank account, you can still hold GUSD or USDC or trade them for other assets.
