Cryptocurrency exchange Coinbase has introduced a new international payment service, enabling users to send funds across borders using XRP and USDC. The service is designed for fast and cost-effective transfers between Coinbase account holders worldwide.
According to the company, this offering focuses on cryptocurrency transactions rather than traditional money remittance. When a user sends XRP or USDC, the recipient can convert the digital assets into their local currency after receipt. This approach leverages the efficiency of blockchain-based transfers while avoiding conventional banking delays.
The service was soft-launched in late February, coinciding with Coinbase's renewed support for XRP. A company spokesperson emphasized that the goal is to raise awareness about the advantages of using cryptocurrencies for international payments.
Currently available to users in all supported countries—including India, Mexico, and the Philippines—the service offers free transfers between Coinbase accounts. Only a nominal on-chain network fee applies when sending to external wallets or exchanges.
For recipients in regions where Coinbase does not support local currency conversion, users may need to transfer received XRP or USDC to a platform that allows exchange to fiat currency.
How the Service Works
Coinbase’s cross-border payment system uses XRP and USDC for transfer speed and stability. Here’s how it works:
- Users select a recipient from their Coinbase account or enter an external wallet address.
- They choose between XRP or USDC as the transfer currency.
- The transaction is processed on the blockchain, typically within seconds.
- The recipient receives the cryptocurrency and can convert it to local currency directly within Coinbase or through a partner platform.
This method reduces dependency on traditional financial intermediaries and simplifies international transactions.
Benefits of Using XRP and USDC
XRP and USDC are chosen for specific advantages in cross-border transactions:
- XRP: Known for high-speed settlement and low transaction costs, making it ideal for international transfers.
- USDC: A stablecoin pegged to the US dollar, offering price stability and reducing exposure to cryptocurrency volatility.
Together, they offer a blend of speed and reliability that is particularly useful for global payments.
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Supported Countries and Currencies
The service is accessible in all jurisdictions where Coinbase operates. Major supported regions include:
- North America: United States, Canada, Mexico
- Asia: India, Philippines, Singapore
- Europe: United Kingdom, Germany, France
Local currency conversion is available in most of these regions. In areas where direct conversion is not supported, users can still receive XRP or USDC and exchange them on other platforms.
Comparing Traditional and Crypto Transfers
Traditional international wire transfers often involve:
- High fees charged by banks and intermediary institutions
- Delays of 2–5 business days for processing
- Complex documentation and recipient banking details
In contrast, Coinbase’s service offers:
- Instant or near-instant transaction confirmation
- Low or zero transaction fees
- Minimal personal data requirements
This makes the service particularly appealing for frequent senders, expatriates, and businesses with international operations.
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Frequently Asked Questions
What is the difference between this and a money remittance service?
Coinbase emphasizes that this is a cryptocurrency transaction service, not a traditional remittance offering. The sender transfers digital assets, which the recipient then converts to local currency. This distinction allows for faster processing and lower costs.
Are there any limits on transaction amounts?
Yes, standard Coinbase account sending and receiving limits apply. These vary based on account verification level and regional regulations. Users can check their specific limits within their account dashboard.
Is the service available to non-Coinbase users?
Recipients do not need a Coinbase account to receive funds, but they must have a compatible wallet. If they wish to convert to local currency without using Coinbase, they will need access to an exchange that supports XRP or USDC conversions.
How does Coinbase make money from this service?
Coinbase may earn revenue through spread margins during currency conversion or through network fees for transactions outside its ecosystem. The company does not charge additional fees for transfers between Coinbase users.
What are the risks of using this service?
Users should be aware of cryptocurrency price volatility when holding XRP or USDC, though USDC is stabilized against the US dollar. Transaction irreversibility and regulatory changes in certain countries may also pose risks.
Can businesses use this service for B2B payments?
Yes, businesses with verified Coinbase accounts can use the service for supplier payments, international payroll, or other cross-border transactions. Volume-based fees may apply for commercial users.
Future Developments and Industry Context
Coinbase’s move aligns with a broader industry trend toward blockchain-based financial services. As digital assets gain acceptance, more companies are exploring crypto-powered solutions for payments, savings, and investments.
The service may expand to include additional cryptocurrencies or fiat currency pairs in the future. It also reflects growing interest in leveraging public blockchains for practical financial applications beyond pure investment or trading.
For now, the offering provides a user-friendly entry point for individuals and businesses looking to experiment with international crypto payments.