Disclaimer
This blog is describing features under development. The feature set may change between now and deployment. Please make all buying decisions on the current feature set, but this blog describes the system we are in the process of building. The details will likely change between now and release. This is also not legal advice. We are a US based company, and to our knowledge the prohibitions on Tether are related to the financial industry. Check the laws in your jurisdiction.
Why is Accepting USDT a Problem?
The primary challenge in accepting USDT in Europe is the Markets in Crypto-Assets Regulation (MiCA). This regulation makes it impossible for regulated entities, including banks and financial institutions, to directly accept USDT, which in turn complicates the process of off-ramping to traditional banking systems. Due to these restrictions, businesses need alternative ways to handle USDT transactions while remaining compliant with European financial laws. Therefore, to accept USDT in Salesforce in Europe, we need to add an intermediary step of converting the USDC first. With Web3 Enabler’s Blockchain Payments, this process is much easier.
Why is USDT Important?
USDT (Tether) is the most widely used stablecoin globally. While USDC has recently achieved near-equal adoption, USDT remains dominant, particularly in the Global South. Many businesses and customers prefer USDT due to its liquidity and widespread acceptance, making it a critical asset for international commerce and remittances. Given this significance, businesses operating in Europe need a reliable method to manage USDT payments despite regulatory barriers.
What’s the Workaround?
The simplest workaround for businesses in Europe is to liquidate USDT into USDC and then off-ramp USDC into a traditional bank account. This allows businesses to comply with MiCA regulations while still accepting USDT payments.
How to Do This with Blockchain Payments
To facilitate this workaround efficiently, businesses should use Blockchain Payments in Salesforce to create a liquidation process. The most cost-effective option for liquidation is BASE/USDC, which offers low transaction fees and a smooth conversion process. If you haven’t already installed Blockchain Payments, you can install it from the AppExchange.
Steps to Set Up a Liquidation Wallet
- Create a Bridge Entity for your company in Blockchain Payments v3 or later.
- Complete KYB (Know Your Business) verification for your entity.
- Link your bank account to your entity within Blockchain Payments.
- Set up a liquidation wallet linked to the bank account.
- Include BASE/USDC as a preferred asset in the liquidation wallet to optimize transaction fees.
Setting Up a Crypto-to-Crypto Bridge
Once the liquidation wallet is ready, the next step is to establish a Crypto:Crypto Bridge using Blockchain Payments v3.1 or later.
- In your liquidation wallet, create a Crypto:Crypto Bridge.
- Set the origin asset as Ethereum/USDT and the destination as BASE/USDC (your liquidation wallet address).
- An Ethereum/USDT address is now assigned to your liquidation wallet.
- Use this address (or Web3 Payment Requests) for customers to send USDT payments.
How Does This Work?
While MiCA prohibits European banks from directly handling USDT, it does not prevent Bridge from accepting and processing USDT transactions. By utilizing a Crypto:Crypto Bridge, businesses can create an intermediary address that receives USDT, with custody managed by Bridge.
- Once USDT is received, Bridge automatically converts it into BASE/USDC.
- The newly converted USDC is deposited into your liquidation wallet.
- From there, businesses can off-ramp the USDC into their bank account while remaining MiCA-compliant.
Blockchain Payments simplifies this entire process, enabling businesses to accept USDT without violating European regulations. Now, if your client will agree to use USDC, you’ll save a round of fees, because it is legal to accept USDC in Europe directly.
Conclusion
At Web3 Enabler, our goal is to make crypto transactions simple and compliant. Managing multi-currency payments is a complex challenge, especially under evolving regulatory frameworks like MiCA. While crypto-native solutions exist for bridging and swapping assets, implementing them falls beyond the scope of this blog. However, Blockchain Payments offers an enterprise-ready solution that enables businesses to accept USDT in Salesforce while staying compliant in Europe.
