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Cryptocurrencies, including stablecoins, are not yet in mass usage, but their application in cross-border transactions is building fast, with some companies aiming at making the tokens more usable in day-to-day transactions. This trend became more evident with announcements early Thursday by MassPay Holdings LLC, Klarna AB, and Worldwide Stablecoin Payment Network.
Payouts orchestrator MassPay announced a capability to send Tether’s USDT, the largest of the stablecoins by volume, to more than 230 countries. The attraction for users is speed. Las Vegas-based MassPay’s network manages more than 70 fiat currencies, but with Tether, users can send money faster than with bank transfers, cards, digital wallets, or other means, the company says. Tether has more than 186 billion coins in circulation, according to Coinmarketcap.
The new service depends on an integration with Plasma, a developer of consumer-based stablecoin technology that bills its services as enabling faster settlement at lower costs to users. “Workers, creators, and suppliers can choose to receive payouts in USDT or convert into local currency, while platforms benefit from lower costs and faster settlement. That’s how we expand stablecoins’ real-world impact,” said Paul Faecks, Plasma’s chief executive, in a statement. Plasma is funded in part by Tether.
The collaboration between the two companies may take on further dimensions over time, as their joint announcement indicates Plasma will integrate MassPay in its payment technology.
Klarna, the buy now, pay later specialist, said it will work with Stripe Inc.’s wallet-technology company Privy to develop new digital wallets for cryptocurrencies held by Klarna’s users. Klarna is no stranger to crypto, having in November launched KlarnaUSD, its own stablecoin.
The purpose is to “bring crypto into the financial lives of normal people, not just early adopters,” Sebastian Siemiatkowski, Klarna’s chief executive and co-founder, in a statement. Privy helps users manage “billions” of crypto transactions monthly, Klarna says, adding it will issue further news about its crypto ventures “in a week or so.”
As for WSPN, the company said early Thursday it will work with ArrivalX, a settlement platform operating worldwide, to integrate its stablecoin infrastructure in ArrivalX’s technology. The object is to offer faster cross-border payments at lower cost, the companies say.
“This partnership represents a significant step forward in our mission to make global payments more accessible, efficient, and transparent,” noted WSPN’s founder and chief executive, Raymond Yuan, in a statement. Specifically, the partners promise their collaboration will deliver faster settlement at lower transaction costs “compared to traditional banking channels.” It will offer direct integrations with card networks, foreign exchange, and payout players operating globally, the partners say.
WSPN’s stablecoin, WUSD, is pegged to the U.S. dollar. It has more than 12 million coins in circulation, according to Coinmarketcap.
