BitPay, Bitcoin payment processor, has announced that merchants may now accept settlement in USD-pegged cryptocurrency “stablecoins” Gemini Dollar (GUSD) and USD Coin (USDC), providing them with the ability to denominate their operations in cryptocurrency while remaining immune from market volatility.
BitPay made the announcement on October 15, explaining that it will allow merchants in 190 countries to accept international payments without relying on costly, time-consuming wire transfers.
“BitPay was founded to make payments faster, more secure, and less expensive using Bitcoin for organizations around the world,” – said Stephen Pair, the company’s co-founder and CEO. “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.”
Previously, merchants could receive settlement in bitcoin, bitcoin cash, and — depending on jurisdictional restrictions — physical dollars and euros. All transactions settled in cryptocurrency will be completed the following day.
Gemini Dollar (GUSD) is a stablecoin launched by Tyler and Cameron Winklevoss in September this year.
USD Coin (USDC) was launched last month by Circle, a crypto company backed by Bitmain and Goldman Sachs.
Notably absent from the list of supported stablecoins is tether (USDT), the dominant token in this market niche and the eighth-largest cryptocurrency overall. Long a flashpoint within the crypto space, USDT lost its dollar peg leading into Monday morning, once again raising questions about whether the token is fully-backed by USD, as its eponymous issuer claims.