Stablecoin sandwich
A stablecoin sandwich in payments refers to a process in which stablecoins —cryptocurrencies pegged to a stable asset like the US dollar—are used as an intermediary layer between fiat currency transactions. This approach can optimize speed, cost, and accessibility, especially in cross-border or digital payments.
Stablecoin relay
A stablecoin relay refers to a transaction process where fiat currency is used at the start and end, but stablecoins act as an intermediary to facilitate the exchange of currencies.
The term "relay" emphasizes the handoff or intermediary role of stablecoins in the middle of the transaction (as there are four runners in a relay and 4 assets in this transaction), enabling efficient currency exchange while maintaining stability. This setup leverages the speed, low costs, and accessibility of stablecoin networks while ultimately anchoring the transaction in fiat currencies.
What's Healthier for Payments? A Sandwich or a Relay?
Since stablecoins went mainstream, countless strategies have emerged to integrate them into payment flows. One popular approach is the Stablecoin Sandwich, which has undeniably sped up transactions and reduced costs using #USDC and blockchain technology.
But beyond the US Dollar and Euro, over 25 currencies have come onchain, each with varying levels of adoption. That’s why at LINK, we favour the Stablecoin Relay strategy.
Could this be the next evolution in FX and cross-border payments?
If your business or portco is dealing with multiple fiat currencies and requires flexibility in managing different types of payments, the Stablecoin Relay may offer more value - and we are actively building in this space.
At LINK we’re building a real-time foreign exchange (FX) payment infrastructure powered by stablecoins.
Sounds like something your business or portfolio company needs? Get started today https://linkio.world
Some cool resources on Stablecoins:
🗺️ A stablecoin Map - stablecoinmap.linkio.world
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