Transferring U.S. Dollars Via Wire

In your Bitso account, digital dollars are named USD stablecoins, a USD Coin (USDC) portfolio. USD stablecoins are cryptocurrencies pegged to a well-known reserve asset: the U.S. dollar (USD).

Every digital dollar is 100% backed up by a U.S. dollar held as collateral so that it is always redeemable 1:1 for USD. Companies like Circle have U.S. dollar reserves in cash or equivalents to back the stablecoin tokens they mint in a fully auditable manner. Then, you can exchange digital dollars for fiat and vice versa at the pegged rate of 1:1 through leading digital asset exchanges.

USD stablecoins provide a stable, regulated store of value that helps you protect against the volatility and fluctuations common in the crypto markets. In addition, they give you an alternative saving option that governments or banks cannot control.

With your Bitso business account, you can send and receive USD via wire transfer. Your account enables you to redeem or mint USD stablecoins in 1:1 exchange for U.S. dollars:

• Withdrawals: Bitso transfers the funds from your account's USD stablecoins balance, and you receive U.S. dollars (fiat) in your bank account at a 1:1 ratio. This transaction does not run through blockchains. Bitso has a licensed partner who gets the stablecoin funds and handles the underlying conversion and funds orchestration to deposit fiat into your bank account.
• Deposits: You wire U.S. dollars from your bank account, and Bitso credits the funds to your USD stablecoins balance at a 1:1 rate. This transaction goes through a blockchain but in a transparent mode to users. You deposit fiat into our partner’s account, who converts the funds to USD stablecoins and sends them to Bitso via a blockchain. Bitso credits the funds to your account balance.

Wire transfers, also named wire payments, enable you to transfer funds quickly and securely without both parties having to be in the same geographic location. The participating institutions execute the funds transfer by sharing information about the recipient, the receiving bank account number, and the amount transferred.

You can transfer from or to your Bitso account using the following bank account type:

• US-Based Account: Sendings occur via a U.S. domestic wire.

A domestic wire transfer is any wire payment between two banks or institutions in the U.S. Your Bitso account acts as if you had a domestic bank account and enables you to transfer USD to or from a US-based bank account via domestic wires.

The US-based receiving or sending bank account can be your or a third party's personal or company account. However, to comply with regulations, it is compulsory to register the bank account in Bitso's systems before completing withdrawals.

How the Wiring Occurs

Bitso partnered with a global, regulated fintech that is a licensed money transmitter under U.S. state law. This way, you can use a domestic wire transfer through Bitso.

To use the wiring service, you must accept our licensed partner's Terms Of Service and approve their KYC compliance assessment process.

Our wire transfers are free from the traditional banking bureaucracy, and your money moves fast, safely, and at lower fees. Usually, standard bank processing takes up to six business hours; jurisdictions, holidays, and special situations influence this number, and when the network is overloaded, domestic wires can take up to two business days.

In your Bitso account, Bitso International operates the transactions in USD, and these transactions have a bank processing time of at most 24 business hours. For deposits, the count starts when the wire from the sending bank is effective.

Transaction Fees

Withdrawals and deposits in USD via wire have a cost. Contact your account manager at [email protected] for the most accurate and up-to-date information regarding the specific charges associated with this service.

However, the following example helps us understand the cost scheme applied to these transactions.

The cost comprises two types of fees; let's consider their default values:

• Fixed fee: 15.00 USD for wire service
• Variable fee: 0.1% of the transferred amount

Now, suppose withdrawing 1,000 USD stablecoins from your account. The system will deduct the 1,000.00 USD stablecoins plus 16.00 USD stablecoins in fees, a total of 1,016 USD stablecoins. In addition, be aware that receiving or sending banks can charge other fees.

In withdrawals, Bitso always deducts the fees from the USD stablecoins balance of your account. Hence, ensure your balance is enough to fund the payout and associated costs. Otherwise, the service throws an insufficient funds error and does not execute the withdrawal.

In the case of deposits, the amount you specify in the deposit intent call must consider the fee amount because fee calculation is based on this amount. Therefore, the amount you receive is smaller than the one your sender deposits.

Terms and Conditions

When using the USD Wire Transfer service, consider the following disclosures:

• Third parties process U.S. dollar wires.
• Bitso uses your balance in USD stablecoins to execute wires in U.S. dollars.
• Taxes and fees other than Bitso’s might apply to the transactions.

You can find the Terms and Conditions of the service on the Legal Information Bitso International page.

Supported Countries and Accounts

All the jurisdictions supported by Bitso can wire USD to a US-based account, except Brazil.

You can verify the list of supported countries at Bitso terms, item number 22.

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Accounts Based in Argentina

USD accounts based in Argentina do not work with U.S. Domestic Wires; you must necessarily use a US-based account.

Transaction Limits

Your account manages limits on transaction amounts and monthly volume. Ensure your limits enable you to send and receive the payments you need. You can verify your current limits on the Profile section of your Bitso web or mobile application. Contact your account manager at [email protected] if you need help to make changes.