Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Stablecoin Companies Are Buying Their Way Into Local Banking, Here Is What It Means for High Risk Merchants
Sep 16, 2026
Stablecoins are moving deeper into commercial payment infrastructure. Circle’s agreement to acquire Tazapay provides a useful measure of that progress.
Announced on September 8, the transaction would bring more than 60 banking and fintech partners and local payout coverage across over 100 markets into Circle’s network. Tazapay processes more than US$25 billion in annualized payment volume, with stablecoins already involved in approximately 60% of that activity.
The proposed acquisition remains subject to regulatory approval and is expected to close in 2027. Its structure still says something important about the direction of the market. Stablecoin companies are investing in local banking connections, foreign exchange, compliance and payout capacity. Those are the operational components required to turn digital dollars into a usable settlement network.
The development has particular relevance for higher-risk merchants. These businesses frequently encounter restrictions that have little to do with their immediate ability to make a sale. Cross-border settlement, limited acquiring coverage, currency conversion and abrupt changes in bank risk appetite can all affect whether revenue reaches the merchant reliably.
Stablecoin settlement offers another route for moving funds through that environment. Its value depends on understanding which part of the payment process it actually changes.
Acceptance and settlement solve different problems
A payment begins with the customer and ends when the merchant can use the proceeds. Several companies may participate between those two points.
The customer may pay through a card, bank transfer or local payment method. An acquiring institution authorizes and processes the transaction. A processor or gateway sends the relevant information between the merchant and the financial institutions. Settlement then delivers the merchant’s funds, subject to fees, reserves, refunds and other contractual terms.
A stablecoin can be introduced near the end of this sequence. The customer may continue paying in conventional currency while the merchant receives USDC or another digital asset. In other arrangements, stablecoins are used between financial institutions and converted into local currency before the final payout.
This distinction is essential for high-risk merchants. Stablecoin settlement can improve the movement of funds after a transaction has been approved. Card acceptance still requires an acquiring relationship capable of supporting the merchant’s industry, geography and transaction profile.
Chargebacks also remain part of card-funded transactions. Converting settlement proceeds into a stablecoin does not remove the consumer’s dispute rights or the merchant’s obligations to the acquiring bank. Reserves and delayed funding may still apply when the underlying transaction carries elevated exposure.
Merchants should therefore identify the exact role played by each provider. The most important questions concern who acquires the card transaction, who holds the merchant agreement, who manages disputes and which institution controls settlement.
Why high-risk merchants are interested
Settlement friction is expensive. A merchant operating across several countries may receive funds in multiple currencies, wait through local banking hours and pay for several conversions before the money reaches its operating account.
Stablecoin rails can shorten parts of that process. Digital assets can move outside conventional banking hours, and a merchant may hold settlement proceeds in a dollar-denominated instrument before deciding when and where to convert them.
That flexibility can be useful for businesses paying international suppliers, contractors or service providers. It may also simplify treasury operations when sales and expenses occur in different jurisdictions.
See: Canada Stablecoin Regulations Guide
Tazapay illustrates the infrastructure required to make the model practical. The company combines collections, virtual accounts, foreign exchange, stablecoin conversion and local payouts. Its network connects stablecoin liquidity with domestic payment rails, allowing recipients to receive the currency and payment method used in their local market.
The Canadian connection is direct. Tazapay states that its stablecoin services are provided through Tazapay Canada Corp., a money services business registered with FINTRAC. The entity facilitates stablecoin payments and conversions within the relevant regulatory framework.
This type of structure gives merchants access to digital settlement while preserving connections to regulated fiat entry and exit points. The quality of those connections determines whether stablecoin settlement can support routine commerce at scale.
The commercial terms require close review
Speed attracts attention, but the economics deserve equal scrutiny.
A merchant may pay a processing fee for the customer transaction, a conversion spread when funds move between fiat and stablecoins, network fees for on-chain transfers and another conversion charge when the stablecoin is exchanged into local currency. Some providers combine these costs into one rate; others price each stage separately.
The settlement promise also needs definition. “Instant settlement” may describe the movement of a stablecoin into a wallet after the provider releases the funds. It may exclude the underwriting period, reserve requirements or time needed to convert the asset into a bank deposit.
Custody creates another decision. Merchants receiving stablecoins into a self-controlled wallet assume responsibility for wallet security, access credentials and transaction approvals. Custodial providers manage some of those functions but introduce counterparty and access risk.
Accounting and reconciliation should be designed before launch. Finance teams need to connect the original customer payment with processing fees, conversion rates, blockchain transactions, refunds and the final value received. A faster rail provides limited operational benefit when the company cannot reconcile it accurately.
Merchants should also consider the stablecoin itself. Reserve quality, redemption arrangements, issuer regulation and available liquidity affect the reliability of the settlement asset. A token designed to maintain a one-dollar value still carries issuer, operational and market risks that should appear in treasury policy.
Underwriting remains central
Higher-risk merchants sometimes approach alternative settlement after losing a conventional processor. That sequence can encourage the assumption that a different rail will resolve the underlying account problem.
Acquirers and payment providers continue to examine the product, customer base, marketing, fulfilment, ownership and regulatory position of the business. Stablecoin providers also conduct customer due diligence, transaction monitoring and sanctions screening.
Merchant-account specialists such as CERF Payment Solutions work across this boundary, helping regulated and specialty businesses identify acquiring and settlement arrangements suited to their operating profile. Approval and commercial terms remain subject to the financial institutions providing the service.
For merchants, transparency is therefore commercially useful. The application should accurately describe the product, expected volume, transaction geography, refund exposure and intended settlement flow. Wallet ownership and conversion arrangements should also be documented.
A business using card acceptance with stablecoin settlement needs a coordinated procedure for refunds and chargebacks. Treasury teams must retain enough accessible liquidity to meet those obligations even when settlement proceeds have moved to another wallet, currency or jurisdiction.
Stablecoin settlement can strengthen a payment structure when these responsibilities are clear. It can reduce payout delays, extend operating hours and improve control over cross-border liquidity. The benefits arise from better infrastructure and sound implementation.
Circle’s planned Tazapay acquisition shows how quickly that infrastructure is developing. Stablecoin networks are acquiring the banking relationships, licences, integrations and local payout capacity required for commercial use.
High-risk merchants will remain subject to careful underwriting. They will also have a wider range of settlement options. The companies that understand both sides of the transaction will be best placed to use those options effectively.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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