Fiat, Stablecoins or Crypto: How to Choose What You Settle In
CoinGate explains how merchants should choose their settlement currency when accepting crypto payments, advising most businesses to settle in fiat to avoid unnecessary exposure while outlining when stablecoins or crypto may be preferable.
CoinGate’s default settlement currency is USDC unless merchants specify otherwise, meaning businesses automatically hold a dollar-denominated stablecoin if they do not adjust their settings. Settlement refers to the currency credited to a merchant’s CoinGate balance after a customer payment confirms, which differs from payout or withdrawal timelines. Merchants can configure their settlement currency at the account level, but integrations may override these settings, leading to unexpected outcomes if not reviewed carefully. The platform’s help centre provides guidance on navigating these configurations to ensure alignment between business preferences and actual settlement outcomes.
Most businesses are advised to settle in fiat (USD, EUR, or GBP) because it aligns with existing financial systems, reduces volatility risk, and simplifies accounting and tax reporting. Fiat settlements lock the exchange rate at the point of sale, converting customer payments automatically to the chosen currency. However, businesses must verify their local banking compatibility, as only these three fiat currencies are supported for settlement and withdrawals. Withdrawal methods and fees vary by currency, with SEPA withdrawals being free and SWIFT incurs a 0.50% fee with a 50 EUR minimum charge.
Stablecoins may be preferable in specific scenarios, such as paying contractors or suppliers in the same asset received, or when local banking infrastructure is slow or costly. CoinGate supports USDC and EURC for stablecoin settlements, with USDC available across seven networks and EURC limited to Ethereum. The platform discontinued USDT following the introduction of MiCA regulations in the EU. Merchants should evaluate whether stablecoin use aligns with their operational needs and written policies before committing.
Crypto settlements are also an option, available in BTC, LTC, ETH, BCH, DOGE, and SOL, with a separate mode that allows merchants to retain customer payments in their original cryptocurrency. Businesses must consider withdrawal schedules, which are weekly for Standard plans and can be customized for Enterprise clients upon request. Settlement currency settings cascade through multiple levels, with the most specific configuration taking precedence, and USDC serving as the fallback if no other currency is specified.