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Mar 3, 2020

COINQVEST Integrates with Vetted Stellar Anchors for Seamless Cross-Currency Settlement

Online businesses can now easily accept payments originating on the most popular blockchains such as Bitcoin (BTC) or Ethereum (ETH), and automatically converts captured funds into fiat or a cryptocurrency of their choice. COINQVEST harnesses the power of the Stellar Decentralized Exchange (SDEX) and vetted Stellar anchors by settling payments across blockchains and into bank accounts.

The robust Stellar Network, the core of the COINQVEST platform, doesn't play favorites to its native coin, the Stellar Lumen (XLM). In fact, the Stellar Network's inclusivity is broad. Other blockchains and coins, as well as fiat currencies (and virtually anything of value, like stocks or bonds) can be traded. Once in the Stellar Network, these value stores are represented as tokens, transferrable and exchangeable in seconds.

The tokenization (and de-tokenization) of assets is executed by service providers called "anchors." An anchor is a gateway that provides interfaces for deposits and withdrawals of funds on and off the network. Some anchors are compliant with the Stellar Enhancement Proposal 6 (SEP-6) and provide a normalized way to move value on and off the Stellar Network. COINQVEST coordinates with several vetted SEP-6 anchors, helping online businesses accept payments originating on the most popular blockchains, as well as convert received funds into a settlement currency of their choice. Businesses can subsequently withdraw funds to wallets or bank accounts.

Capturing Payments

Online businesses using COINQVEST checkouts obtain a list of cryptocurrency payment methods, such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP (Ripple) or Stellar Lumens (XLM) and display it back to their customers. The customer selects their preferred cryptocurrency and initiates payment by sending funds to a deposit address native to the corresponding blockchain. The deposit address is given and monitored by a vetted anchor who converts captured funds into tokens on the Stellar Network and forwards these to the merchant's wallet on COINQVEST. At this point the funds are secured.

Converting Funds

Once tokenized, secured funds can be converted into any asset on the Stellar Network supported by the COINQVEST platform. An instruction to automatically convert payments to the merchant’s preferred settlement currency can be included in the checkout API call. Alternatively, funds can be manually converted via the API conversion endpoint or within the UI. COINQVEST automatically identifies the best exchange rate, using path payments on the Stellar Network and its Decentralized Exchange (DEX), and guarantees the settlement amount.

A popular configuration for online businesses is to support customer payments in BTC, ETH, XLM, or other cryptocurrencies and automatically convert settled funds to a fiat currency, such as USD or EUR. This dramatically facilitates accounting, finance and tax reporting, and furthermore, protects merchants from the sometimes rapid and substantial rate fluctuations of the original cryptocurrency.

Withdrawing Payouts

Captured funds can be either held in the COINQVEST wallet, or withdrawn to traditional bank accounts or other cryptocurrency wallets. Funds withdrawn to the Stellar Network settle within seconds in your own account. Withdrawals to traditional bank accounts and blockchains other than Stellar are processed by our vetted SEP-6 anchors. An instruction to automatically withdraw funds upon settlement can be included in the checkout API call.

Supported Anchors

COINQVEST is native to the Stellar Network and supports path payments originating from any asset on the network. Payments made on Stellar don’t require anchoring and settle within seconds.

All payments originating on other blockchains are acquired by an anchor and deposited into your account as tokens on the Stellar Network. We currently work with Stellarport and Papaya for Bitcoin, Ethereum, Litecoin, and XRP Ledger payments.

COINQVEST's anchors are vetted on a few major factors: market liquidity, reputation, reliability, conformity with the latest technical specifications, and regulatory compliance. Regarding on-ramps, we currently support anchors for payments originating on the Bitcoin, Ethereum, XRP Ledger, and Litecoin blockchains. Off-ramping is available onto Stellar, the above mentioned networks, as well as traditional bank accounts via fiat anchors.

Withdrawals are processed by all of the above cryptocurrency anchors as well as their fiat equivalents AnchorUSD for USD payouts and Cowrie Exchange for NGN, as well as Tempo for EUR. Specific anchors for customer payments and merchant payouts can be specified in the checkout API call.

Expandability

COINQVEST anchors are platform modules and online businesses automatically get access to new cryptocurrency payment methods for their customers as the Stellar Network and its pool of anchors grows and new entities emerge.

Please contact us if you have questions or if you are an anchor wanting to be listed on the COINQVEST platform.

Stellar NetworkSEP-6Anchors
Marcin Olszowy COINQVEST Co-Founder