In a significant development within the cryptocurrency landscape, Slash, a San Francisco-based neobank tailored for businesses, has unveiled a pioneering payments and treasury platform featuring a new U.S. dollar stablecoin called USDSL, issued by Stripe’s Bridge. This initiative, highlighted during a recent announcement, is designed to cater to companies aiming for seamless U.S. dollar access and efficient cross-border payments without the need for a U.S. bank account.
The launch of the Global USD Account is positioned as a groundbreaking solution for businesses seeking to streamline their payment processes while minimizing foreign exchange costs. As noted in an interview with CoinDesk, Slash’s platform promises to enhance settlement times, making it an attractive choice for companies working with U.S. suppliers. The rise of stablecoins—cryptocurrencies that maintain a stable value by being pegged to external assets like the U.S. dollar—has been remarkable, amassing a market value of approximately $250 billion. This surge is partly fueled by regulatory changes, including the recent U.S. GENIUS Act, which sets new standards for stablecoin issuers.
“It’s super interesting because we were very much not a crypto company,” Cardenas said, emphasizing the shift in approach as demand for stablecoin payments increases among wholesalers and marketing agencies.
Slash’s entry into stablecoins began with the ability to facilitate USDC and USDT payments without requiring users to hold these tokens. This feature has proven successful, processing nearly $1 billion in annualized volume shortly after launch, prompting the firm to expand its stablecoin offerings further. The platform now aims to assist crypto companies in consolidating their treasury management processes, improving operational efficiency by allowing easy conversion between stablecoins and off-ramping funds to U.S. bank accounts via various transfer methods.
Looking ahead, Slash anticipates introducing a card enabling businesses to spend their stablecoin balances, alongside a potential wallet for managing other crypto assets. With a recent $41 million Series B funding round that valued the company at $370 million, Slash is poised to play a pivotal role in the evolving cryptocurrency and payments landscape, drawing attention from global banks and major retailers exploring the stablecoin market.
Slash Launches Payments and Treasury Platform with New Stablecoin
Key points regarding Slash and its new offerings:
- Global USD Account Launch: Slash introduced a payments and treasury platform utilizing a U.S. dollar stablecoin issued by Stripe’s Bridge.
- Access Without a U.S. Bank Account: The platform allows companies to access U.S. dollar transactions and cross-border payments without needing a traditional U.S. bank account.
- Introduction of USDSL: Slash’s own stablecoin, USDSL, facilitates the storage, sending, and receiving of dollars or stablecoins in a single account.
- Shortened Settlement Times: The platform is designed to reduce settlement times and eliminate foreign exchange fees for payments to U.S. suppliers.
- Growth of Stablecoins: The stablecoin market has grown to $250 billion, providing faster and cheaper options for international payments.
- Federal Standards Influence: Interest surged in stablecoins following the signing of the GENIUS Act, which set new standards for issuers.
- Industry Adoption: Major companies like Amazon and Walmart, along with payment firms like PayPal and Stripe, are exploring stablecoin products.
- Volume Projections: Slash’s previous features processing nearly $1 billion annually have motivated further expansion into stablecoin services.
- Focus on Crypto Companies: The new platform targets crypto firms needing streamlined treasury management across multiple platforms.
- Future Product Plans: Potential future offerings include a spending card for stablecoin balances and a wallet for other cryptocurrencies.
- Funding and Valuation: Slash raised $41 million in a Series B round, elevating its valuation to $370 million.
“It’s super interesting because we were very much not a crypto company… But then we had these wholesalers and marketing agencies telling us we need to have stablecoin payments to accept money from customers at lower cost.” – Cardenas
Slash Launches Global USD Account: A Game Changer in Business Payments
In a bold move within the fintech landscape, Slash has unveiled its Global USD Account, a significant addition to the burgeoning neobank scene. This platform leverages a newly issued U.S. dollar stablecoin by Stripe’s Bridge, intended to simplify cross-border transactions and treasury management for businesses without needing a traditional U.S. bank account. Unlike many competitors, Slash’s innovative use of its own stablecoin, USDSL, not only facilitates dollar transactions but also allows users to handle both dollars and stablecoins seamlessly in one account.
What distinguishes Slash from traditional rivals, such as PayPal or larger banks venturing into the stablecoin realm, is its focus on the real-time needs of businesses engaged in international commerce. By eliminating foreign exchange fees and significantly reducing settlement times, Slash is directly addressing the pain points that often burden small to medium-sized enterprises looking to engage with U.S. suppliers. However, this aggressive pivot into stablecoins may present challenges. Firms with entrenched banking relationships might see Slash as a threat, while cautious business owners might still hesitate to adopt a platform that rests on the relatively nascent stablecoin infrastructure.
The increased interest in stablecoins, fueled by regulatory updates like the GENIUS Act, opens new avenues for Slash, positioning it to capture a solid share of the estimated $250 billion stablecoin market. Larger players, including major retailers and payment processors, are strategically exploring this space, which could lead to heightened competition. Businesses looking for cost-effective and efficient payment solutions, particularly those involved in e-commerce or international trade, stand to benefit significantly from Slash’s offerings. Conversely, companies unprepared for the shifts in payment technology or slow to adapt might find themselves at a competitive disadvantage in the evolving financial landscape.
Ultimately, as Slash continues to roll out features like a potential card for stablecoin spending and enhanced treasury management tools, it could redefine the business banking experience. However, this rapid innovation comes at a time when regulatory scrutiny is intensifying, posing a risk for those not compliant or equipped to navigate potential legal complexities. Hence, while the launch of the Global USD Account arrives as a refreshing alternative for agile businesses, it also sets the stage for a transformative shift that may alienate more traditional-minded firms.
