Crypto-to-fiat payouts are services that allow cryptocurrencies to be converted back into fiat currency, easing the transition from digital assets to traditional financial institutions. Unlike a centralized exchange (CEX) where users can on/off ramp directly, you will need to take a few extra steps when it comes to self-custodial wallets. However, there are many other available options for crypto-to-fiat payouts.
Via a Centralized Exchange
Prior to recent events, cryptocurrency exchanges have generally been the go-to method for on/off ramp needs. Preferred for their convenience, users only need to add in their bank account details to be able to receive the currency of their choice paid directly to their bank account.
If you are comfortable with using a CEX to transfer crypto-to-fiat, exchanges such as Crypto.com and Coinbase are still widely used for various cryptocurrency trading purposes. Withdrawing your funds is as easy as creating an account, transferring your tokens and converting them to fiat before withdrawing to a linked bank account.
Do take note that certain currencies may incur a withdrawal fee.
Via a Trading Desk
Another way is via Trading Desks, or better known as Over-the-counter (OTC) desks. They are online or offline platforms that allow users to directly trade cryptocurrencies for fiat (or vice-versa) with one or more counterparties, without relying on a centralized exchange or broker. OTC desks provide a matching service and the facilities necessary to ensure the trade is conducted between the buyer and seller safely. While available to all users, this method is more popular amongst non-retail users.
Once each trade is completed, a commission is paid through its service.
Via a Crypto Payment Service
In recent years we have seen the rise of Crypto Payment Services such as Circle and Triple A that allow users to buy and sell cryptocurrencies or NFTs using fiat currencies. Such platforms typically offer crypto-to-fiat payout services as their goal is to make crypto more accessible for everyone.
Users will first need to create an account, and similar to how you would transfer via a CEX, users will also need to transfer your tokens and convert them to fiat before withdrawing to a linked bank account.
Certain payment processing gateways such as StraitsX offer their off-ramp service using Stable Coins. After creating an account, users will need to convert their coins into XSGD (via Uniswap) before transferring out the XSGD Stablecoin into their linked bank account. XSGD will then be deposited as SGD using a 1:1 conversion rate.
Different Payment Services may charge a processing fee for withdrawals.
At Headquarters, we've partnered with Triple A to simplify the process of converting crypto-to-fiat currency. Now, users can send funds directly from their wallets to third-party bank accounts. With our streamlined one-step transfer, users save both time and money, eliminating the current complexity of the transfers from crypto to fiat.
Find out more about how our partnership can enhance your financial transactions and provide a seamless crypto-to-fiat conversion experience.
Disclaimer: This article serves as an educational piece and the information provided is not intended to be personalised investment advice. Readers should always do their own due diligence before investing.
