How to make borderless B2B payments with stablecoins

This guide provides information on how Conduit facilitates cross-border B2B payments in and out of the US for clients companies that do not have access to a US bank account.
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Key Takeaways:
Puntos Claves:
  • Who an use B2B payments via Conduit
  • How stablecoins work
  • Regulatory considerations for B2B payments
  • The flow of funds for B2B payments

Making Borderless B2B Payments

Conduit enables business to business payments in the US for our non-US clients that do not have access to a US bank account. These payments include invoice settlements, freelancer payments through services such as Upwork, contractor payments and more.

Recipient companies (payees) are paid using ACH or other standard payment rails via a US bank account. Conduit is licensed to make these payments, and only requires documentation such as invoices to complete the transfers.

Conduit makes these payments by converting local fiat to stablecoins pegged 1:1 with USD. The stablecoins are then converted to USD and transferred to the payee.

Who can make payments?

Conduit’s borderless B2B payments are available for our clients holding USDC or local fiat in over 25 currencies. See the full list here.

Who can receive payments?

Conduit can facilitate payments via ACH to companies with US bank accounts and make SWIFT transfers in USD or other currencies to foreign bank accounts.

In order to send B2B payments, Conduit only requires basic documentation about the transaction and a verified commercial invoice.

What are stablecoins?

Stablecoins are a type of digital asset pegged to a specific value – usually the value of a fiat currency, such as US Dollar or Euro.

While they hold the same value as the fiat currency they are pegged to, stablecoins offer the dual benefit of the mobility and utility of blockchain-based cryptocurrency.

Conduit uses stablecoins – such as USDC and USDT – to move between local fiat currencies.

Licensing and Regulation

Conduit is registered as a money service business with the Financial Crimes Enforcement Network (FinCEN) as a money transmitter and dealer in foreign exchange. Conduit only operates as an MSB in the state of Montana.

In Canada, Conduit is registered as a MSB with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for the MSB activities of money transferring and dealing in virtual currencies.

Borderless B2B payments flow of funds

Conduit runs "daily net settlement". At the end of each business day, Conduit nets out all new deposit and withdrawal requests from clients and either purchases or sells T-bills. This process runs every business day, but can take up to 3 business days to complete given delays from USD money movements via bank wire. Most deposits and withdrawals are completed within 12 hours.