Payward‑backed Reap Targets Non‑USD Stablecoins to Enable Round‑the‑Clock Cross‑Border FX Settlement

Reap, the fintech venture backed by Payward—the company behind the popular cryptocurrency exchange Kraken—has announced a strategic shift toward using stablecoins that are not tied to the U.S. dollar. This move is driven by a clear ambition: to create a seamless, 24‑hour, cross‑border foreign‑exchange (FX) ecosystem that operates independently of the constraints imposed by conventional banking schedules.

By expanding its portfolio beyond USD‑denominated tokens, Reap aims to address a range of market inefficiencies, regulatory nuances, and user‑demand signals that have emerged as the global payments landscape continues to digitalize. ### The Rationale Behind Non‑USD Stablecoins The dominance of the U.S.

dollar in international finance is undeniable, yet it also creates a bottleneck for traders, businesses, and individuals who need to move money in other major currencies. When a transaction involves a currency pair that does not include the dollar—such as EUR/JPY or HKD/KRW—participants must typically route the trade through a series of intermediary steps, often converting first to USD before reaching the target currency. Each conversion introduces additional spreads, latency, and counter‑party risk.

Moreover, traditional banking systems operate on a limited schedule, generally closing for several hours each night and on weekends, which further hampers real‑time settlement. Non‑USD stablecoins present a direct solution to these challenges.

By issuing a token that is fully collateralized and pegged to a specific fiat currency—whether it be the Mexican peso, the euro, the Hong Kong dollar, the South Korean won, or the Japanese yen—Reap can enable participants to transact in the native currency of their choice without the need for an intermediate USD conversion. This reduces transaction costs, shortens settlement times, and lowers exposure to exchange‑rate volatility that can arise during the conversion process. ### Expanding the Stablecoin Suite: MXN, HKD, EUR, KRW, JPY Reap’s first concrete step in this direction is the development of a Mexican peso (MXN) stablecoin.

Mexico’s economy is deeply integrated with the United States, yet its domestic market still suffers from limited access to efficient cross‑border payment channels. A dedicated MXN token would allow Mexican businesses to receive payments from overseas partners instantly, settle payroll, and manage supply‑chain payments without waiting for the traditional banking window. Additionally, the token could serve the sizable diaspora community that regularly sends remittances back home, offering a cheaper and faster alternative to legacy money‑transfer services. Beyond Mexico, Reap is actively researching stablecoins pegged to four additional currencies: 1.

**Hong Kong Dollar (HKD)** – Hong Kong serves as a financial gateway to Mainland China and the broader Asian market. A HKD‑stablecoin would facilitate rapid settlement for trade finance, tourism, and digital‑goods transactions that currently rely on slower correspondent‑bank networks.

2. **Euro (EUR)** – As the primary currency of the Eurozone, the euro is used by over 340 million people. A euro‑backed stablecoin would unlock 24/7 trading for European markets, enable instant cross‑border payments within the bloc, and support the growing demand for decentralized finance (DeFi) services that require a stable, euro‑denominated asset. 3.

**South Korean Won (KRW)** – South Korea is a technology hub with a vibrant crypto‑friendly community. Introducing a KRW stablecoin would empower Korean enterprises to settle international contracts instantly, reduce reliance on foreign exchange intermediaries, and integrate more smoothly with global DeFi platforms. 4. **Japanese Yen (JPY)** – Japan’s economy remains one of the world’s largest, and its financial institutions are increasingly exploring blockchain solutions.

A JPY‑stablecoin would provide Japanese firms and consumers with a reliable, on‑chain vehicle for cross‑border payments, especially in sectors such as e‑commerce, gaming, and digital content. ### Advantages of 24/7 Settlement The core value proposition of Reap’s non‑USD stablecoin strategy is the ability to settle FX trades at any hour, any day. Traditional FX markets close at 5 p.m. New York time, and settlement typically occurs the following business day.

This lag creates exposure to price movements that can erode profit margins or increase the cost of hedging. By leveraging blockchain’s immutable ledger and near‑instant finality, Reap can execute and settle trades the moment counterparties agree on a price, regardless of the hour. This continuous settlement model also benefits liquidity providers. Market makers can offer tighter spreads because they no longer need to factor in the risk of overnight price swings or the cost of funding positions during off‑hours.

For institutional participants, the ability to lock in rates instantly can improve cash‑flow forecasting and reduce the need for complex hedging strategies. ### Regulatory and Compliance Considerations Launching stablecoins tied to multiple fiat currencies inevitably raises regulatory questions. Reap is approaching each jurisdiction with a tailored compliance framework. For the MXN token, Reap is working closely with the Bank of Mexico and local financial authorities to ensure that the token meets anti‑money‑laundering (AML) and know‑your‑customer (KYC) standards.

Similar dialogues are underway with the Hong Kong Monetary Authority, the European Central Bank, the Financial Services Commission of South Korea, and the Japanese Financial Services Agency. A key component of Reap’s compliance strategy is full collateralization. Each stablecoin will be backed 1:1 by reserves held in reputable, audited custodial accounts.

Regular third‑party attestations will be published to guarantee transparency and maintain user confidence. Additionally, smart‑contract logic will enforce strict issuance and redemption rules, preventing over‑minting and ensuring that the token supply always reflects the underlying fiat holdings. ### Market Impact and Future Outlook If Reap successfully deploys these non‑USD stablecoins, the implications for the global FX market could be profound. Traders would gain direct access to a broader set of currency pairs without the friction of multiple conversions.

Companies could settle invoices instantly, improving working‑capital efficiency and reducing the need for costly foreign‑exchange hedges. Consumers, especially those in emerging economies, would enjoy faster, cheaper remittance services. Moreover, the availability of stablecoins for major regional currencies could accelerate the integration of decentralized finance platforms with traditional finance. For example, a European DeFi protocol could accept EUR‑stablecoins for lending, borrowing, or yield‑generation activities, bridging the gap between on‑chain and off‑chain assets.

Similarly, Asian markets could see a surge in cross‑border e‑commerce transactions that settle in HKD, KRW, or JPY tokens, bypassing legacy payment rails. In the longer term, Reap’s model may inspire other fintech firms and central banks to explore multi‑currency stablecoin ecosystems. As regulatory frameworks evolve and the demand for real‑time, borderless payments grows, the concept of a truly global, 24‑hour FX market becomes increasingly feasible. ### Conclusion Reap’s decision to back stablecoins with currencies beyond the U.S.

dollar reflects a strategic response to the limitations of traditional foreign‑exchange settlement. By introducing a Mexican peso token and investigating stablecoins for the Hong Kong dollar, euro, South Korean won, and Japanese yen, Reap is positioning itself at the forefront of a new era where cross‑border payments can occur instantly, cost‑effectively, and around the clock. The initiative not only promises to lower transaction costs and reduce settlement risk but also aligns with broader trends toward digital asset adoption and regulatory modernization.

As the project progresses, stakeholders across banking, commerce, and the crypto community will be watching closely to see how these non‑USD stablecoins reshape the dynamics of global finance.