Payward, the investment firm best known for backing the popular cryptocurrency exchange Kraken, has launched a new venture called Reap that aims to modernise the way businesses handle foreign‑exchange (FX) transactions. Unlike the conventional banking system, which processes currency trades only during limited business hours and often relies on a narrow set of fiat‑linked stablecoins, Reap is deliberately building a portfolio of non‑USD stablecoins.
The strategy is driven by a combination of market demand, regulatory considerations, and the technical advantages that stablecoins tied to regional currencies can offer for continuous, low‑cost cross‑border settlement. ### The Rationale Behind Non‑USD Stablecoins The global FX market is dominated by the US dollar, which serves as the default settlement currency for the majority of international trade. However, this dominance creates friction for companies that regularly transact in other currencies. When a European firm needs to pay a supplier in Japan, for example, the trade typically involves a USD‑based intermediary step: the euro is first converted to dollars, and then the dollars are swapped for yen.
Each conversion incurs fees, spreads, and latency, especially outside of normal banking windows. By introducing stablecoins that are directly pegged to the euro, yen, Hong Kong dollar, South Korean won, or Mexican peso, Reap can eliminate the intermediate USD leg, reducing both cost and time.
Furthermore, many emerging markets and regional economies have expressed a desire for greater financial sovereignty. A stablecoin that mirrors the local currency can serve as a digital bridge for businesses that lack robust domestic payment rails but have access to blockchain networks. This approach also aligns with the growing trend of central banks exploring their own digital currencies (CBDCs).
By offering private‑sector stablecoins that already function in a digital, programmable environment, Reap positions itself as a complementary layer to future CBDC infrastructures, potentially easing integration and adoption. ### 24/7 Settlement: Overcoming Traditional Banking Constraints Traditional banks operate on a schedule that leaves large gaps—overnight, weekends, and public holidays—during which FX trades cannot be executed. These gaps create settlement risk and force market participants to either hold larger liquidity buffers or accept delayed payments. Reap’s blockchain‑based platform runs continuously, leveraging the immutable and transparent nature of distributed ledger technology.
Transactions are validated by a network of validators rather than a single central authority, ensuring that settlement can occur at any hour of the day, any day of the week. The use of stablecoins also mitigates volatility concerns that are typically associated with cryptocurrencies.
Each token is fully collateralised by the underlying fiat currency, held in regulated custodial accounts or trusted banking partners. This collateral model guarantees that one token is always redeemable for its equivalent amount of the native fiat, preserving confidence among corporate users who might otherwise be wary of price swings. ### Mexican Peso Stablecoin: A First Step Reap’s initial rollout focuses on a Mexican peso‑denominated stablecoin, reflecting the sizable trade volume between the United States, Canada, and Mexico under the USMCA agreement. Mexican businesses have long faced challenges in accessing efficient cross‑border payment solutions, often relying on costly correspondent banking relationships.
By tokenising the peso, Reap offers Mexican exporters a faster, cheaper way to receive payments from North‑American buyers, while allowing U.S. importers to settle invoices without converting to USD first. The peso stablecoin will be issued on a public blockchain that supports smart contracts, enabling automated escrow, conditional releases, and compliance checks. Companies can embed regulatory rules directly into the transaction logic, ensuring that anti‑money‑laundering (AML) and know‑your‑customer (KYC) requirements are met without manual intervention.
This programmable compliance layer is a significant upgrade over legacy FX platforms, which often require separate, time‑consuming checks. ### Exploring Additional Currencies: HKD, EUR, KRW, JPY Beyond the peso, Reap is actively evaluating stablecoins for the Hong Kong dollar, euro, South Korean won, and Japanese yen. Each of these currencies presents unique opportunities: * **Hong Kong Dollar (HKD):** Hong Kong serves as a major gateway for capital flows into Mainland China. A HKD stablecoin would facilitate seamless settlement for businesses operating across the Greater Bay Area, reducing reliance on the offshore RMB market.
* **Euro (EUR):** The eurozone accounts for roughly 30% of global FX turnover. A euro‑pegged stablecoin would allow European firms to transact instantly with partners worldwide, sidestepping the need for overnight banking windows. * **South Korean Won (KRW):** South Korea’s tech‑savvy economy and robust export sector could benefit from a digital won that integrates with existing supply‑chain platforms, speeding up payments to manufacturers and component suppliers.
* **Japanese Yen (JPY):** As the third‑largest reserve currency, a yen stablecoin would support Japanese corporations in managing cash flows across Asia‑Pacific, especially in markets where traditional FX infrastructure is under‑developed. ### Compliance, Custody, and Risk Management Reap’s approach to compliance is built around a hybrid model that combines on‑chain transparency with off‑chain regulatory oversight. Stablecoins are minted only after the corresponding fiat reserves are verified by third‑party auditors, and the reserves are held in segregated accounts at reputable banks.
Real‑time audits are made available through cryptographic proofs on the blockchain, giving corporate treasurers confidence that the tokens are fully backed. Risk management is further enhanced by the platform’s ability to execute atomic swaps—simultaneous exchanges of two assets that either both complete or both fail. This eliminates settlement risk that can arise when one leg of a trade settles while the other does not, a common problem in traditional FX where counterparties may default after the initial leg has been executed. ### The Bigger Picture: A New Paradigm for Global Trade By championing non‑USD stablecoins, Reap is not merely adding more tokens to the market; it is redefining the architecture of international payments.
The platform’s 24/7 availability, programmable compliance, and direct fiat‑to‑fiat tokenisation create a more efficient, inclusive, and resilient FX ecosystem. Companies that adopt Reap’s solution can expect lower transaction costs, faster cash conversion cycles, and reduced exposure to currency conversion risk. In the long term, the success of Reap’s stablecoin suite could encourage other financial institutions to explore similar models, potentially leading to a broader diversification of settlement currencies in the digital realm.
As regulators become more comfortable with stablecoins and as central banks roll out their own digital currencies, the interoperability between private‑sector stablecoins and public‑sector CBDCs could further streamline cross‑border commerce. In summary, Payward‑backed Reap is betting on a future where stablecoins represent a spectrum of global currencies rather than a single dominant USD token.
By launching a Mexican peso stablecoin and evaluating tokens for HKD, EUR, KRW, and JPY, Reap is laying the groundwork for continuous, low‑cost FX settlement that operates around the clock, empowering businesses to move money as swiftly and securely as data.