The US dollar’s dominance in the stablecoin market accounts for 99% of total global payments, even as on-the-ground commercial activity takes place in local currencies. Reap aims to shift that share by adding a Mexican peso stablecoin to its card products, cross-border payments, and corporate treasury services.
The Hong Kong-based fintech firm holds a Visa Principal Issuer Member (VPIM) license in two jurisdictions: Hong Kong and Mexico. This dual-licensing makes releasing a peso stablecoin the most practical first step. Through its principal issuer status, Reap possesses its own BIN-based cards supporting business partners across more than 100 international markets.
Slashing Cross-Border Costs
The primary motivation behind this expansion stems from high transfer rates in cross-border and emerging markets. Reap founder Daren Guo noted that costs can reach 5% to 7%. The presence of local currency-pegged stablecoins is designed to offer a direct alternative to those expensive rates.
Reap currently operates under Payward, the parent entity of crypto exchange Kraken. Guo noted that the acquisition by Payward provides his company with access to yield instruments, tokenized equities, and trading facilities for users.
24/7 On-Chain Forex
The Mexican peso is only the starting point. Reap has begun exploring additional token issuances pegged to the Hong Kong dollar, euro, South Korean won, and Japanese yen. The ultimate goal of this initiative is to build an on-chain foreign exchange (forex) network operating 24 hours a day, every day.
As of publication, the company has not provided an official timeline for when these new stablecoins will be rolled out to the public market.
“Visa gets stablecoins settled. Reap makes them spendable,” Guo said, summarizing his company’s specific role.
Sourced from CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
