Companies operating across different markets may need to move funds in traditional currencies and digital assets as part of the same transaction. For example, a company may receive funds in Brazilian reais, convert them into US dollars, and use a stablecoin during one stage of the settlement process.
Traditional currencies, such as BRL, USD, and EUR, are used within the conventional financial system. Stablecoins, on the other hand, are digital assets designed to track the value of a reference currency and can be transferred over blockchain networks.
For example, BRZ tracks the value of the Brazilian real. USDC and USDT are pegged to the US dollar, while EURC tracks the euro.
Because these assets have different characteristics, each can be used at a specific stage of a transaction. This makes it possible to connect payments, FX, settlement, and blockchain within the same financial infrastructure.
Traditional currencies and stablecoins serve different purposes
The main difference between these assets is how they are used.
Traditional currencies are part of the conventional financial system and can be used for payments, collections, and transfers. Stablecoins represent fiat currencies in digital form and can be transferred over blockchain networks.
In practice, a company could use:
Traditional currency → payments and collections within the local financial system
Stablecoin → specific flows for moving and settling funds between companies and markets
This means a transaction does not have to use the same type of asset at every stage. Each one can serve a different purpose within the overall flow.
How can the two types of assets work together?
Imagine a Brazilian company that receives BRL from its customers and needs to pay a supplier in another country.
The transaction can start within the traditional financial system:
Customer → BRL → company
The company can then convert the funds and use a stablecoin during a settlement stage:
BRL → conversion → stablecoin → international settlement
In the destination market, the funds can be converted back into a traditional currency:
Stablecoin → conversion → USD or EUR → supplier
In this example, each asset is used at a different point in the transaction. The Brazilian real is used for the initial collection, the stablecoin participates in settlement, and the dollar or euro can be used for the final payment.
The flow can also work in the opposite direction. A company may receive funds in a stablecoin, convert them into a traditional currency, and use the resulting amount to make a payment.
Where can this combination be used?
Connecting different types of assets can be useful across several business models.
International payments
A company can hold and move BRL, USD, or EUR through its accounts and use a stablecoin during a specific settlement stage between different markets.
This can be relevant for businesses that need to connect financial systems across countries and move funds between them.
Exchanges and digital asset platforms
An exchange can use traditional currencies for deposits and withdrawals and stablecoins for trading or specific settlement flows.
For example, a user can deposit BRL, purchase digital assets, complete transactions, and later convert the funds back into a traditional currency before making a withdrawal.
Fintechs
Fintechs operating with multiple currencies can use traditional financial systems for payments and collections while using stablecoins for specific flows between markets.
This combination allows different stages to be structured according to the needs of the product and operation.
Global companies
A company operating across several countries may receive funds in one currency, convert them into another, and use a stablecoin at an intermediate stage before making a payment.
This can help connect different currencies, markets, and financial systems within the same process.
What should you consider when choosing the assets?
The combination of traditional currencies and stablecoins depends on the characteristics of each transaction. Before deciding which assets to use, it is important to consider:
Currencies involved: which currencies enter and leave the flow;
Markets: where the participants are located;
Purpose: whether the asset will be used for payment, conversion, trading, or settlement;
Liquidity: availability of the resources needed in each currency or asset;
FX: how the conversion between currencies will be carried out;
Technology: the ability to connect financial systems and blockchain networks;
Compliance: the rules and controls that apply to each stage;
Cost and speed: how much time and resources are needed to complete the transaction.
These criteria help determine which assets and financial rails are most appropriate for each stage.
Integrated infrastructure connects different systems
Combining traditional currencies and stablecoins requires more than access to the assets themselves. The systems responsible for each stage also need to be connected.
An integrated financial infrastructure can bring together banks, liquidity providers, FX services, payment systems, and blockchain networks.
With these components connected, a company can structure different stages of a transaction without having to manage each system separately.
For example, a transaction can start with a BRL collection, move through a conversion into USD, use a stablecoin during a settlement stage, and end with a traditional currency payment in the destination country.
In this scenario, the infrastructure acts as a layer connecting different environments and allowing funds to move from one stage to the next.
The right combination depends on each operation
Traditional currencies and stablecoins do not necessarily need to compete with each other. Depending on the market, currency, purpose, and financial structure, they can serve different roles within the same transaction.
While BRL, USD, and EUR continue to be used within traditional financial systems, stablecoins can participate in specific blockchain-based flows for moving and settling funds.
For companies working with international payments, FX, digital assets, or operations across different markets, combining these resources can expand the ways they structure their financial processes.
The decision, therefore, does not have to be between a traditional currency or a stablecoin. The most important thing is understanding which asset and financial rail make the most sense at each stage of the transaction.
Does your company need to connect traditional currencies, stablecoins, FX, and different financial rails? Talk to our commercial team and discover how Transfero's financial infrastructure can support your operation.
