Stablecoin FX: Hold the currency you need, wherever you bank

When an EU business pays a supplier outside the eurozone, it usually converts through its house bank or a payment provider. The invoice gets paid, but the business doesn't end up holding the new currency itself, in a regulated form it controls and can move on-chain.

AllUnity Stablecoin FX turns fiat into a regulated stablecoin in another currency.

A business can send euros by bank transfer to mint USDAU, AllUnity’s US dollar stablecoin. The euros convert at the rate on arrival, and the USDAU is backed 1:1 by dollar reserves. 

AllUnity covers all currencies in which it issues stablecoins: EURAU (Euro), USDAU (US dollar), CHFAU (Swiss franc) and SEKAU (Swedish krona), so a business can hold each currency without opening a bank account in that country. 

The gap in cross-border FX

Today's FX routes are slow to settle, priced with margins that are hard to see, and limited to the currencies a business already banks in.

• SEPA stops at the euro. Within Europe, SEPA already makes euro payments fast and cheap. Once a payment has to arrive in kronor, francs or dollars, it leaves that system.

• Bank conversions are slow and hard to price. A standard currency exchange could settle around two business days after it’s agreed, on top of the time the payment itself takes. Banks usually build their margin into the quoted rate rather than list it as a fee, and smaller companies, without the volume to negotiate, tend to get the widest margins.

• Smaller currencies get little attention. Issuers and exchanges build around the dollar and the euro, so a currency like the Swedish krona has thin on-chain liquidity, where a large swap can move the price. Euro-krona payments are routine for businesses trading across the Nordics. SEKAU was the first MiCAR-regulated Swedish krona stablecoin, issued to serve that corridor.

To close those gaps, a stablecoin route needs to deliver four things:

1. Usable straight away. Converted funds should be able to move at any hour, not wait for bank settlement.

2. Worth it at small sizes. Everyday payments, not just large transfers, should convert at a fair cost.

3. Just as safe. What the business holds should be redeemable at par under EU rules.

4. A direct route. Funds should convert to the target currency without passing through another currency first.

How the three routes compare for a business turning euros into US dollars:

How it works

Stablecoin FX follows the same process businesses already use to mint and redeem AllUnity stablecoins:

1. Opt in. The business accepts the Stablecoin FX terms in its Business Mint Account.

2. Set up a mapping. A mapping pairs an incoming fiat currency (EUR, CHF, SEK or USD) with the stablecoin the business wants to receive, for example USD in and CHFAU out. Each mapping gets its own IBAN.

3. Send fiat. The business sends fiat to that IBAN by bank transfer. The rate is set when the transfer arrives, the conversion completes straight away, and AllUnity mints the target stablecoin. The applied rate is shown on the transaction in the platform.

4. Hold, send or redeem. The stablecoin can stay in the business's wallet, move on-chain to a supplier or counterparty, or be redeemed at par for its own currency at any time, as MiCAR requires.

What makes it different

Conversion happens at issuance, not in a pool. AllUnity issues the stablecoin, so a conversion is a mint at par against the FX rate. The amount received doesn't depend on on-chain liquidity, which matters most for currencies like the krona.

More than euros and dollars. EU businesses that hold part of their reserves in Swiss francs or Swedish kronor can keep them as CHFAU or SEKAU, MiCAR-regulated stablecoins backed 1:1, without a bank account in Switzerland or Sweden.

Issued by a BaFin-licensed institution. Each token is a MiCAR e-money token issued by AllUnity, an e-money institution licensed by BaFin. Holders have a statutory right to redeem at par.

No manual request per conversion. Once a mapping is set up, each incoming transfer in that currency is converted and minted without a separate instruction.

To learn more: https://allunity.com/stablecoin-fx

Who it's for

• Startups & growing companies that pay contractors, suppliers or software vendors abroad without their own FX team.

• Fintechs & platforms that pay suppliers, contractors or payroll in another currency and want to settle on-chain in that currency.

• Banks & neobanks that want to give business clients regulated stablecoin balances in dollars, francs or kronor, using AllUnity's Business Mint Account instead of issuing tokens themselves.

• Exchanges, OTC desks & market makers that need inventory in several regulated stablecoins to quote prices and settle trades.

Stablecoin FX is available to AllUnity business customers only. Stablecoin FX converts fiat into a stablecoin. It does not swap one AllUnity stablecoin for another and rates can't be locked in advance. To get started, open a Business Mint Account or talk to our team.

Disclaimer: 

This marketing communication has not been reviewed or approved by any competent authority of an EU Member State. AllUnity GmbH bears sole responsibility for its content. 

This communication is for marketing purposes only and does not constitute an offer or recommendation to purchase e-money tokens (EMTs).

A White Paper under Art. 51 MiCAR has been published, containing all material information, including the EMT holders’ redemption right. 

The White Paper is available at: www.allunity.com/whitepapers

Redemption Right: Pursuant to Article 49 MiCAR, the holders of EMTs have a statutory right of redemption against AllUnity at any time and at par value.

Stablecoin FX enables cross-currency funding of stablecoin issuance, with currency conversion handled by AllUnity’s banking partner. For details on execution, pricing and AllUnity’s Cross-Currency Funding Terms, please reach out to us.

Website: https://allunity.com

Contact: support@allunity.com | +49 6934874165