Key Highlights
- Reap, a Visa Principal Issuer Member owned by Kraken parent Payward, plans to add a Mexican peso stablecoin to its card, cross-border payments, and treasury products.
- The Hong Kong-based fintech is also exploring stablecoins pegged to the Hong Kong dollar, euro, South Korean won, and Japanese yen through its global stablecoin partnership with Visa.
- Founder Daren Guo emphasizes that while public blockchains operate continuously, traditional FX settlement still relies on banking hours and can take days, with emerging-market corridors incurring 5% to 7% fees.
Reap Expands Stablecoin Suite Beyond Dollar Denomination
Hong Kong-based fintech platform Reap is preparing to launch a Mexican peso-denominated stablecoin across its card issuance, cross-border payments, and treasury management products, according to founder Daren Guo. The move signals a strategic push to diversify stablecoin utility beyond the U.S. dollar, which currently dominates nearly 99% of stablecoin payment volume even when commercial activity occurs in local currencies worldwide.
Visa Partnership Enables Around-the-Clock Settlement
Reap operates as a Visa Principal Issuer Member (VPIM), granting it the ability to issue cards on its own bank identification numbers (BINs) and support partners in more than 100 markets. The company’s global stablecoin partnership with Visa provides its card programs with around-the-clock settlement capabilities, addressing a critical friction point in traditional finance. As Guo explained, “Visa makes stablecoins settle. Reap makes them spendable.” This infrastructure allows Reap to bridge the gap between public blockchains, which run continuously, and the legacy foreign exchange system that remains tethered to banking hours, correspondent banks, and multi-day settlement cycles.
Payward Acquisition Unlocks New Capabilities
The expansion follows Reap’s acquisition by Payward, the parent company of cryptocurrency exchange Kraken. Guo noted that the deal “opens up additional capabilities,” including possible access to yield, tokenized equities and trading. With the backing of a major crypto exchange group, Reap is positioned to integrate deeper financial primitives into its stablecoin-powered payment rails, potentially offering clients yield-bearing instruments and tokenized asset exposure alongside core payments and treasury functions.
Targeting High-Fee Emerging Market Corridors
Guo highlighted the economic inefficiency of current cross-border flows, stating that “Public blockchains run continuously, but global foreign exchange (FX) still relies on banking hours, correspondent banks and settlement that can take days. In emerging and cross-border markets, moving money between currency corridors can incur fees of 5% to 7%.” By introducing stablecoins pegged to the Mexican peso, Hong Kong dollar, euro, won, and yen, Reap aims to reduce these costs and enable real-time, programmable money movement for businesses operating across currency zones.
Why This Matters
The stablecoin market has long been dominated by USD-pegged tokens such as USDT and USDC, creating a structural mismatch for businesses that earn and spend in non-dollar currencies. Reap’s multi-currency stablecoin roadmap, backed by Visa’s settlement network and Payward’s exchange infrastructure, represents a concerted effort to localize stablecoin utility for global commerce. If successful, the initiative could accelerate adoption of on-chain payments in Latin America, Europe, and Asia-Pacific, where businesses currently bear high FX conversion costs and settlement delays. The involvement of a Visa Principal Issuer Member also underscores growing institutional comfort with stablecoin-based payment rails, potentially setting a precedent for other fintechs to issue non-dollar stablecoins at scale.
Frequently Asked Questions
Which stablecoins is Reap planning to support?
Reap is preparing to add a Mexican peso stablecoin and is exploring tokens pegged to the Hong Kong dollar, euro, South Korean won, and Japanese yen for integration across its card, cross-border payments, and treasury products.
How does Reap’s Visa partnership enable stablecoin spending?
As a Visa Principal Issuer Member, Reap can issue cards on its own BINs and leverage Visa’s global stablecoin partnership to provide around-the-clock settlement, making stablecoins spendable at any merchant that accepts Visa across more than 100 markets.
What role does Payward play in Reap’s expansion?
Payward, the parent company of Kraken, acquired Reap and provides additional capabilities including potential access to yield-generating products, tokenized equities, and trading infrastructure, enhancing Reap’s stablecoin-powered financial services suite.
