Using Slash for Stablecoin Payments (Not Crypto Trading)

Slash's cryptocurrency capabilities are different from the standard ways people expect to use crypto. Whereas most people see crypto as an investment asset, Slash sees crypto as a payment rail. That's why our platform supports only stablecoins, rather than exchange-traded tokens like Bitcoin, and does not custody assets in a wallet.

Here are some of the common questions we get about Slash crypto so you can see if it's right for your business:

Can you buy cryptocurrency directly from Slash?

Slash is not a cryptocurrency exchange. You cannot use Slash as a trading platform, and you cannot hold speculative crypto assets in a wallet custodied by Slash.

What Slash supports is stablecoin payments. With Slash, you can convert operating cash into USD-pegged stablecoins for outbound payments, and convert incoming stablecoin payments back into USD in a Slash account. Slash supports transactions in USDC and USDT, two USD-pegged stablecoins that represent a majority share of global stablecoin payment volume today.

The use case is using blockchain rails for business payments, especially global B2B payments that can settle quickly to a recipient's wallet and often cost less than an international wire.

How do Slash stablecoin payments work?

Slash connects the standard online banking experience to the blockchain. For users, that shows up in the workflows you use to send and receive payments:

• Sending stablecoins: You start with USD in your Slash account, choose a recipient wallet address, select USDC or USDT, and confirm the payment. Slash converts (on-ramps) the USD amount into the selected stablecoin and sends it to the recipient's wallet on the selected blockchain network.
• Receiving stablecoins: You generate a deposit address from your Slash dashboard and share it with the payer. When the payer sends USDC or USDT to that address, Slash converts the stablecoin into USD and deposits (off-ramps) the funds into your Slash account.

In the dashboard, these capabilities show up in the Move Money menu:

• To send stablecoins, go to Move Money → Send Money. If crypto is enabled for your account, you'll see the option USDC/USDT.
• To receive stablecoins, go to Move Money → Add Funds. If crypto is enabled for your account, you can select USDC/USDT to view your deposit details to share with a payer.

Slash shows the supported networks, transfer method, expected timing, and fees before you submit. Some networks require extra information, such as a memo. The dashboard will show that when required.

What is an on-ramp?

An on-ramp is the conversion path from fiat money into a blockchain asset.

In Slash, an on-ramp happens when you use USD from your Slash account to send USDC or USDT to a recipient's crypto wallet. Behind the scenes, the payment has two legs:

1. Fiat leg: Slash debits the USD amount, plus any applicable fees, from your selected Slash account. Depending on the account and transfer option, the fiat funding leg may be routed through the supported payment rail/provider for that account.
2. Crypto leg: Slash's stablecoin infrastructure converts the funded USD amount into the selected stablecoin on the selected blockchain network, then broadcasts the transfer to the recipient wallet address.

From the user's perspective, you simply enter a dollar amount and recipient wallet address. Technically, Slash is coordinating a fiat debit, stablecoin conversion, and on-chain delivery. The recipient receives the stablecoin in their own wallet, but you are not buying and holding crypto in a Slash-custodied trading wallet.

What is an off-ramp?

An off-ramp is the conversion path from a blockchain asset back into fiat money. It's the same process as an on-ramp, but in reverse (moving from the crypto leg to the fiat leg).

From the user's perspective, you copy a deposit address and receive dollars in Slash. Technically, the flow is an on-chain stablecoin receipt followed by conversion into USD and settlement into your Slash account.

Why would your business want to use stablecoins for payments?

The global stablecoin supply has grown by 40x since March 2020. Adjusted stablecoin transaction volume in the last 12 months was $14.0T. Stablecoins are an economic force, and for many businesses, their benefits are becoming harder to ignore.

Stablecoins can let you move money faster and cheaper around the globe than traditional banking rails without the volatility risk of using exchange-traded tokens.

Businesses often use stablecoin payments to:

• Pay international vendors, contractors, suppliers, or partners,
• Receive payments from counterparties that already operate with stablecoins,
• Or reduce the time and cost of some cross-border payments.

However, doing all of that in a separate crypto exchange account can make it difficult to properly track, utilize, and reconcile stablecoin transactions against your business's fiat transactions. Here's where Slash comes in:

• Slash removes the need to maintain a separate exchange account or operate a crypto wallet just to make a business payment.
• Slash lets you keep stablecoin payment activity alongside the rest of your finances. You can assign the same approvals, keep the same records, and reconcile inside the same system you use every day to manage your business's money.

Stablecoin payments are not a replacement for every payment method. ACH, wires, cards, and other rails may still be better depending on the situation. But for counterparties that can receive USDC or USDT, stablecoins can be a fast and practical payment rail.

Can funds from Slash accounts be used to make purchases from a crypto exchange?

Yes, in general, businesses can use their Slash funds for lawful purchases from third-party crypto exchanges, subject to the same account controls, compliance review, limits, and transaction monitoring that apply to other payments.

Businesses whose own activity is operating a crypto exchange, broker, custodian, on/off-ramp, money transmitter, or similar virtual-currency service may require additional review and may not be eligible for all products. But ordinary businesses are not prohibited from using their own funds for crypto exchange purchases simply because the counterparty is a crypto exchange.

Need more help?

Stablecoin transfers must be enabled for your account before they appear in the dashboard. Available currencies, networks, rails, limits, fees, and timing are shown in the product before you confirm a transfer.

For more information about stablecoin transaction fees, the approval process, tracking payments on the blockchain, and more, refer to the other stablecoin help center articles in the left sidebar.