Stablecoin Settlements

This guide lays out the steps involved settling stablecoins to merchants. This workflow would primarily be used by PGs/PSPs looking to speed up settlements to merchants with bank rail challenges.

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The working assumption in this flow is that the PG/PSP themselves do not want any exposure to crypto - either financially or contractually. Therefore the merchants would have to be onboarded onto Fuze to facilitate conversion and stablecoin payouts.

Step 1: Create an Internal User to receive Fiat

Fuze has two types of user - Internal and End-Users. Internal users are essentially sub-accounts but roll up to the main account, where as end-users are KYCd users treated as a separate entity contractually, and from a compliance point of view. More details here:

So the first step is to create an Internal User using this API with the userType as INTERNAL

Step 2: Onboard merchant(End-User) on Fuze platform

Merchants will have to go through a KYB process in order to be onboarded on Fuze. The onboarding process, and it’s various modes, are laid out in detail here

Once onboarded, you’ll get a customerID for the merchant. This can be used in all subsequent API calls.

Step 3: Receipt of funds to your fiat account

Depending on the integration agreed, deposits can either be completely automated via Named IBANs, or can be manually marked. In case of the fully automated route, you can generate an IBAN by creating a fiat account against the Internal User above, using this API endpoint

Step 4: Transfer of funds to merchant

You can transfer the funds received in your account to a merchant using the Internal Transfer API

The from value will be the customerID in step 1. And the to value will be the customerId from step 2.

Step 5: Convert funds to crypto

You can now place a trade to convert the fiat in the merchant’s account to the agreed stablecoin using this API:

Given the use-case, the fiat-stablecoin conversion rate will be fixed to give predictability. We will be introducing market orders soon, but in the meantime - our RFQ order system can be used to convert funds to crypto. To see how you can generate a quote, and execute it, refer to the Order APIs here.

From your point of view, your workflow ends here. The merchants can now login to their Fuze dashboard and see the crypto balance on their side. They can whitelist their own wallet and withdraw it as per their needs.