Crypto Funded Fiat Settlement

Crypto ownership has reached global scale, yet real world usage remains limited. This limitation is not driven by technology. Instead, it exists at the settlement layer.

Across the global economy, most everyday payments still require fiat. Rent, suppliers, invoices, salaries, and services all settle through traditional banking rails. Meanwhile, individuals and businesses increasingly hold stablecoins in self custodial wallets. However, these two realities do not naturally connect.

To close this structural gap, TrustLinq introduced a new payment category: crypto funded fiat settlement.

Through this model, self custodial crypto can fund regulated fiat payments directly to third parties. As a result, merchants do not need to accept crypto, and TrustLinq does not take custody of user funds.

The settlement problem crypto never solved

Blockchain technology solved transfer, but crypto’s Multi-Billion Dollar Usability Problem settlement remained unresolved.

Although stablecoins move quickly, operate globally, and provide predictable value, most recipients still expect fiat. In practice, they rely on bank accounts and established payment workflows. For that reason, handling crypto is not desirable on the recipient side.

Historically, many crypto payment models were built on assumptions that no longer reflect how payments work today.

For instance, some approaches assume merchants will accept crypto. In reality, adoption remains limited and uneven. Other models assume users want to move crypto into their own bank accounts before making payments. This extra step adds friction and delays. While card based solutions help in certain consumer scenarios, they introduce network dependencies and often fail for business payments.

Because of these constraints, crypto holders remain disconnected from real economic activity.

What crypto funded fiat settlement means

At its core, crypto funded fiat settlement separates funding from settlement.

Under this structure, the payer funds a transaction from a self custodial crypto wallet. Next, the payment settles directly to a third party in fiat. The recipient receives a standard bank transfer, and their workflow remains unchanged. At the same time, the payer does not need a bank account, and crypto is never required on the recipient side.

In effect, crypto is used where it makes sense, on the funding side. Fiat is delivered where it is required, on the settlement side. This approach enables paying with crypto without merchant acceptance.

This approach is not off ramping. It is also not merchant processing. Instead, it represents a new settlement layer within the global payment stack.

How this model differs from off ramps, cards, and gateways

Crypto funded fiat settlement is often grouped with existing crypto infrastructure. Structurally, however, it operates very differently.

Off ramps move crypto into the payer’s own bank account. Payment gateways assume the recipient accepts crypto. Cards depend on card networks and remain unsuitable for many B2B payments. For a good comparison breakdown visit: Why They Are Not Similar.

By contrast, crypto funded fiat settlement focuses on direct settlement to third party beneficiaries. Importantly, it does so without custody and without changing how recipients operate.

Because of this distinction, the model scales more effectively across jurisdictions, payment types, and compliance frameworks.

Why stablecoins enable crypto funded fiat settlement

Stablecoins form the foundation of crypto funded fiat settlement.

First, they remove price volatility. In addition, they simplify reconciliation. Finally, they integrate cleanly with fiat settlement systems.

As stablecoins increasingly support real economic activity rather than speculative trading, infrastructure that treats them as funding instruments becomes essential. According to the Bank for International Settlements, stablecoins now operate alongside traditional financial systems in many payment contexts.

Where crypto funded fiat settlement becomes essential

In practice, this model becomes critical when payments are cross border, when recipients require fiat, and when crypto is held operationally rather than speculatively. It is also highly relevant where traditional banking access is limited and where businesses operate internationally.

In these situations, forcing crypto acceptance or relying on cash out workflows creates friction and cost. Crypto funded fiat settlement removes that friction by design. This is particularly relevant when businesses need to pay invoices with crypto without a bank account.

TrustLinq and the creation of this category

TrustLinq introduced and operationalised crypto funded fiat settlement as a distinct payment category.

Through its platform, TrustLinq enables individuals and companies to fund payments directly from self custodial stablecoins while delivering fiat to third party bank accounts globally. The sender does not need a bank account. Likewise, the recipient does not need to accept crypto. At no point do funds enter TrustLinq custody.

Rather than operating at the wallet, exchange, or merchant layer, TrustLinq operates at the settlement layer.

Why this category matters long term

The future of crypto is not about replacing fiat everywhere. Instead, it is about enabling crypto to settle into fiat where required.

Crypto funded fiat settlement allows crypto holders to participate in the real economy without forcing merchants, suppliers, or service providers to change how they operate. As crypto ownership continues to grow faster than merchant adoption, this settlement layer becomes increasingly important.

FAQ’s

Use your crypto for real world payments

TrustLinq enables crypto funded fiat settlement for individuals and businesses worldwide.

Register once and pay any third party using your self custodial crypto.

→ Register with TrustLinq