Why Payward’s Reap Chooses Non‑USD Stablecoins for Around‑the‑Clock Cross‑Border FX Settlement

Payward, the investment firm best known for backing the popular cryptocurrency exchange Kraken, has been quietly building a new financial‑technology platform called Reap. The ambition behind Reap is to reshape how businesses and individuals move money across borders, especially when traditional banking systems are closed for business. Rather than relying on the familiar U.S. dollar‑denominated stablecoins that dominate most crypto‑based payment networks, Reap is deliberately turning its attention to stablecoins that are pegged to a variety of other major currencies.

This strategic choice reflects a broader vision: to enable true 24/7 foreign‑exchange (FX) settlement that mirrors the real‑world demand for multi‑currency liquidity, without the latency and cost structures of legacy banks. ### The Rationale for Non‑USD Tokens The global FX market processes more than $6.6 trillion a day, but a significant portion of that volume is constrained by the operating hours of correspondent banks, settlement windows, and regulatory bottlenecks.

While USD‑stablecoins such as USDC or USDT have proven useful for moving value quickly, they do not solve the underlying problem of currency conversion when the market needs to settle in euros, yen, or other local currencies after hours. By issuing stablecoins that are directly tied to those currencies, Reap can eliminate the intermediate step of converting from USD to the target currency, thereby reducing both time and transaction fees. Moreover, many emerging markets still lack robust, dollar‑centric crypto infrastructure. A Mexican peso‑backed stablecoin, for example, would give Mexican businesses a digital asset that is both stable and instantly recognizable to local regulators and customers.

It also sidesteps the foreign‑exchange risk that arises when a Mexican firm must first acquire USD‑stablecoins and then swap them for pesos on a secondary market, a process that can be costly and expose the firm to price volatility. ### Current Initiatives: Mexican Peso Stablecoin Reap’s first concrete step in this direction is the development of a stablecoin pegged to the Mexican peso (MXN). The project is being built in partnership with a consortium of Mexican banks, fintech firms, and regulatory bodies to ensure compliance with local anti‑money‑laundering (AML) and know‑your‑customer (KYC) requirements. The token will be fully collateralized, meaning that for every digital peso issued, an equivalent amount of fiat pesos will be held in reserve at a licensed custodian.

This one‑to‑one backing is essential for maintaining trust, especially in markets where skepticism toward crypto assets remains high. The MXN‑stablecoin aims to serve several use cases: 1.

**Cross‑border payroll** – Mexican companies with employees abroad can pay salaries instantly, without waiting for traditional wire transfers that may take several days. 2.

**Import‑export settlements** – Traders can settle invoices in pesos at any hour, avoiding the need to lock in exchange rates during limited banking windows. 3. **Remittances** – Migrant workers can send money home with lower fees and faster delivery compared to conventional remittance services.

### Exploring Additional Currency Tokens Beyond the peso, Reap is actively researching stablecoins linked to the Hong Kong dollar (HKD), euro (EUR), South Korean won (KRW), and Japanese yen (JPY). Each of these currencies presents a unique set of opportunities and challenges.

- **Hong Kong Dollar (HKD)**: Hong Kong serves as a major gateway for capital flowing into and out of mainland China. A HKD‑stablecoin would facilitate seamless settlement for businesses operating in the Greater China region, especially for fintech platforms that need to move funds quickly across borders. - **Euro (EUR)**: As the second‑largest reserve currency, the euro is central to trade within the European Union. A euro‑stablecoin could be used by multinational corporations to hedge against currency risk and to streamline intra‑EU payments that currently rely on the SEPA network, which, while efficient, still adheres to banking hours.

- **South Korean Won (KRW)**: South Korea’s tech‑savvy population and vibrant e‑commerce sector make it an attractive market for digital payments. A KRW‑stablecoin would enable Korean merchants to accept crypto payments without converting to USD first, preserving margins. - **Japanese Yen (JPY)**: Japan’s mature financial ecosystem and its regulatory openness to crypto assets provide a fertile ground for a yen‑pegged token.

Such a token could be integrated into existing digital wallets and point‑of‑sale systems, allowing consumers to pay with a stable, blockchain‑based representation of the yen. Each token will be designed with the same rigorous standards of transparency, auditability, and regulatory compliance that Reap applies to its MXN offering. The company plans to employ third‑party attestations and real‑time on‑chain reporting to demonstrate that reserves are always sufficient to cover the circulating supply.

### Technical Architecture and Settlement Flow Reap’s platform leverages a permissioned blockchain that offers high throughput and low latency, essential for real‑time FX settlement. When a user initiates a cross‑border transaction, the following steps occur: 1. **Asset Selection** – The sender chooses the appropriate stablecoin based on the recipient’s preferred currency.

2. **Smart‑Contract Execution** – A smart contract locks the sender’s tokens and triggers a deterministic exchange rate oracle that pulls the latest interbank FX rates. 3. **Instant Conversion (if needed)** – If the sender’s token differs from the recipient’s, the contract automatically swaps the assets using a decentralized liquidity pool that aggregates bids from institutional market makers.

4. **Settlement Confirmation** – Both parties receive cryptographic proof of settlement within seconds, and the recipient can immediately transfer the stablecoin to a local bank account or digital wallet.

Because the entire process occurs on a blockchain that operates continuously, there is no dependency on traditional banking cut‑off times. This architecture also provides an immutable audit trail, which regulators can access in real time, thereby addressing compliance concerns. ### Market Impact and Future Outlook By championing non‑USD stablecoins, Reap is positioning itself at the intersection of traditional finance and decentralized technology. The approach could reduce reliance on the U.S.

dollar as the de‑facto settlement currency, diversifying risk for global businesses and potentially lowering systemic FX volatility. It also aligns with the broader trend of central banks exploring their own digital currencies (CBDCs), as Reap’s tokens could serve as a bridge between private‑sector stablecoins and future sovereign digital currencies. In the longer term, Reap envisions a network of interoperable stablecoins that can be swapped instantly across borders, creating a global, 24/7 FX marketplace.

Such a marketplace would empower small and medium‑sized enterprises, freelancers, and consumers in emerging economies to participate in international trade on equal footing with large corporations. The roadmap includes pilot programs for each of the targeted currencies, followed by phased rollouts based on regulatory approvals and market demand. If successful, Reap’s multi‑currency stablecoin suite could become a cornerstone of the next generation of cross‑border payments, delivering speed, cost‑efficiency, and financial inclusion far beyond what traditional banking can offer today.