Stablecoins for Payments
Calm, educational overview of stablecoins as a payment rail. No hype, no CTAs to crypto exchanges.
Visa settled $3.5 billion via USDC in 2024. Stripe Bridge makes stablecoin settlement accessible. Here's what Canadian merchants should know.
Settlement vs Acceptance: Key Distinction
Settlement
You accept traditional payment methods (credit cards, bank transfers), but your payment processor settles to you in stablecoins.
Example: Customer pays with a credit card. Stripe settles to you in USDC. You convert USDC to CAD or hold it.
Acceptance
You offer stablecoins as a direct payment method at checkout. Customer sends USDC/USDT directly from their crypto wallet.
Example: Customer has USDC in Coinbase. They scan a QR code at checkout and send USDC directly to your wallet.
Why Consider Stablecoins?
Lower Fees
Stablecoin transactions on modern blockchains can cost $0.01-$0.10. No interchange, no card network fees.
Fast Settlement
Stablecoin transactions settle in minutes, not days. No waiting for ACH or wire transfers.
Global Reach
Accept payments from anywhere without worrying about currency conversion or international wire fees.
Real-World Examples
Visa + USDC ($3.5B in 2024)
Visa settled $3.5 billion in transactions using USDC (USD Coin) stablecoin in 2024. This wasn't customer-facing. It was backend settlement between financial institutions. Shows that stablecoins are being used at enterprise scale.
Stripe Bridge
Stripe Bridge lets businesses accept stablecoins or get settled in stablecoins. Makes it as easy as enabling a checkbox in your Stripe dashboard. Currently in beta but expanding.
Shopify + Stablecoin Payments
Shopify merchants can enable stablecoin payments via apps like Coinbase Commerce or BitPay. Mostly used by crypto-native businesses or international merchants.
Good Fit If...
International Payments
You sell to customers globally and want to avoid high international wire fees or currency conversion costs. Stablecoins make cross-border payments cheap and fast.
Crypto-Savvy Audience
Your customers already use crypto wallets and hold stablecoins. Offering USDC payments makes checkout easier for them.
Treasury Management
You want to hold some cash reserves in stablecoins for diversification or faster international supplier payments. Settlement in USDC gives you flexibility.
Important Considerations
Regulatory Uncertainty
Canada is still developing crypto payment regulations. RPAA registration may apply if you're holding customer funds. Consult legal and accounting professionals.
Tax Reporting
CRA treats stablecoins as crypto assets for tax purposes. You'll need proper accounting for every transaction, including conversion to CAD at fair market value.
Volatility Risk
While stablecoins aim to maintain 1:1 peg with USD, there's still slight volatility and depegging risk. Convert to CAD quickly if you're risk-averse.
Customer Adoption
Most Canadian consumers don't have crypto wallets yet. Stablecoin acceptance works best as an additional option, not a replacement for credit cards.
How to Get Started (If Interested)
- Check if Stripe Bridge is available in Canada. Stripe makes stablecoin settlement easiest. If not available, look at Coinbase Commerce or BitPay.
- Consult with an accountant who understands crypto tax reporting. Make sure you're set up for proper CRA compliance.
- Start with settlement, not acceptance. Let your processor settle to you in USDC, but keep accepting traditional payment methods at checkout.
- Test small. Enable stablecoin acceptance for a subset of products or international customers first. See if there's demand before going all-in.
Realistic Assessment
Stablecoins are real and used at scale (see Visa's $3.5B), but they're not yet mainstream for Canadian consumer payments.
Good use cases exist: International payments, crypto-native audiences, and treasury management. But for most Canadian SMBs selling to local consumers, traditional payment rails are still easier.
Worth monitoring: Stripe Bridge and similar tools are making stablecoins more accessible. If regulatory clarity improves and adoption grows, this could become a standard checkout option within 2-3 years.
This page is educational only. We don't sell crypto services or encourage speculation. Evaluate stablecoins as a payment rail based on your specific business needs.