Onchain FX
An overwhelming majority of cross-border payments facilitated by stablecoins use what is known as the stablecoin sandwich: the onchain leg is conducted in stablecoins, typically USD-denominated, with on- and off-ramps converting from/to a local currency.
Accessing FX Liquidity Onchain
Tempo is exploring a design to enable stablecoin users to access FX liquidity directly onchain, including via a set of regulated non-USD stablecoin issuers. This removes the need for off-chain currency conversion and enables seamless multi-currency flows entirely onchain.
When available, users will be able to:
- Exchange between USD and non-USD stablecoins directly onchain
- Access competitive FX rates through decentralized liquidity pools
- Execute cross-border payments without relying on traditional FX providers
- Reduce settlement times and costs associated with currency conversion
Multi-Currency Fee Payments
When available, Tempo will also allow users to pay for network fees in currencies beyond USD. This means users would be able to interact with Tempo in their preferred currency without needing to hold USD stablecoins specifically for transaction fees.
Coming Soon
Onchain FX is currently in development and will be available in a future release. This feature is being designed in close collaboration with regulated stablecoin issuers to ensure it meets compliance requirements while providing the flexibility and efficiency that global payment flows demand.
If you're interested in multi-currency payment flows and want to explore how onchain FX can benefit your use case, reach out to our team.