Payments Protocols

Standardized workflows that sequence principles into repeatable methods.

Protocol Categories

Category	What It Covers	Key Protocols
Stablecoin Routing	Intent → Rail selection → Settlement → Reconcile	Least-cost router
Off-Ramp Flows	USDC → Local fiat → Supplier bank account	Bridge, BVNK, corridor ops
Treasury Ops	Working capital optimization, early-pay capture	Dynamic discounting
Compliance	KYC/AML, reporting, audit trail	On-chain proofs, reporting

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Stablecoin Payment Protocol

1. INTENT
   └─► Payment instruction from ERP/AP system
   └─► Amount, recipient, currency, deadline

2. ROUTE
   └─► Evaluate corridors: SWIFT vs stablecoin + off-ramp
   └─► Calculate all-in cost per rail
   └─► Select optimal path (like telecom LCR)

3. FUND
   └─► Convert USD → USDC via Circle Mint (at par)
   └─► Or maintain stablecoin treasury balance

4. TRANSFER
   └─► On-chain settlement (Solana, Base, etc.)
   └─► Minutes to finality
   └─► Gas fees negligible

5. OFF-RAMP
   └─► BVNK, Bridge, or local partner
   └─► Stablecoin → Local currency
   └─► Deposit to supplier's bank account

6. RECONCILE
   └─► On-chain proof of settlement
   └─► Automatic audit trail
   └─► Feed back to routing model

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Least-Cost Routing Protocol

This is where your telecom background applies directly.

The Algorithm

1. DATA COLLECTION
   └─► Real-time rail pricing feeds (SWIFT, stablecoin off-ramps)
   └─► FX rates per corridor
   └─► Historical settlement times
   └─► Compliance constraints per destination

2. OPTIMIZATION
   └─► Calculate optimal rail per payment
   └─► Factor in: cost, velocity, compliance, SLA requirements
   └─► Apply constraints: corridor maturity, regulatory limits

3. EXECUTION
   └─► Route payment to selected rail
   └─► Monitor settlement in real-time
   └─► Fail over to backup rails if needed

4. SETTLEMENT
   └─► Track actual cost vs estimated
   └─► Calculate net positions
   └─► Execute payment (traditional or on-chain)

5. LEARNING
   └─► Update cost predictions
   └─► Refine routing algorithms
   └─► Build corridor intelligence

Rail Selection Matrix

Corridor	Volume	SWIFT Cost	Stablecoin	Winner
US → MX	$500K/mo	2.5%	0.6%	Stablecoin
US → CN	$1M/mo	3.2%	1.0%	Stablecoin
US → VN	$300K/mo	3.8%	1.3%	Stablecoin
US → UK	$200K/mo	1.5%	0.8%	Case-by-case
US → NG	$100K/mo	4.5%	2.5%	Stablecoin

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Off-Ramp Protocol

The critical "last mile" — getting stablecoins into supplier bank accounts.

Standard Flow

USDC (on-chain)
       ↓
Off-Ramp Provider API (Bridge, BVNK)
       ↓
Provider Bank Account
       ↓
Local Payment Rail (ACH, SPEI, PIX, etc.)
       ↓
Supplier Bank Account (local fiat)

Corridor-Specific Patterns

Corridor	Off-Ramp Partner	Local Rail	Time to Bank	Cost
Mexico	Bridge, BVNK	SPEI	Same-day	0.5%
Brazil	Bridge	PIX	Instant	0.8%
China	BVNK	CNAPS	Same-day	1.0%
Vietnam	BVNK	NAPAS	Next-day	1.3%
India	BVNK	IMPS/UPI	Same-day	1.2%
Nigeria	Local partners	NIP	Same-day	2.5%

Supplier Experience

Critical insight: Supplier never touches crypto.

Supplier sees:
1. Invoice sent to buyer
2. Notification: "Payment initiated"
3. Local currency deposited in their bank
4. Settlement: hours not days

No wallets. No keys. No crypto education required.

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Treasury Operations Protocol

Working Capital Optimization

1. MEASURE BASELINE
   └─► Current settlement times per corridor
   └─► Capital trapped in transit
   └─► Early-pay discounts available but missed

2. IMPLEMENT VELOCITY
   └─► Route through stablecoin rails
   └─► Compress settlement from days → hours
   └─► Free trapped working capital

3. CAPTURE DISCOUNTS
   └─► Identify 2/10 net 30 opportunities
   └─► Pay on day 10 (now possible)
   └─► Capture 2% discount (36% annualized)

4. OPTIMIZE TIMING
   └─► FX rate monitoring
   └─► Payment batching for efficiency
   └─► Float management

Early-Pay Protocol

Step	Action	Value Created
Identify	Suppliers with 2/10 net 30 terms	Discount pool
Qualify	Can we settle in <10 days?	Feasibility
Execute	Pay on day 8-9 via stablecoin rails	2% captured
Verify	Confirm discount applied	Realized savings
Compound	Reinvest savings into more early payments	Flywheel

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Compliance Protocol

Audit Trail

Every stablecoin payment generates:

Data Point	Source	Use
Payment intent	ERP system	Business purpose
Rail selection	Routing engine	Decision audit
On-chain transaction	Blockchain explorer	Settlement proof
Off-ramp confirmation	Provider API	Local delivery
FX rate applied	Provider / oracle	Regulatory reporting

KYC/AML Integration

PAYMENT INTENT
       ↓
Sanctions screening (OFAC, EU lists)
       ↓
Counterparty verification
       ↓
Transaction monitoring
       ↓
PROCEED or BLOCK

Key advantage: On-chain transparency makes audits simpler, not harder.

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Stablecoin Rails

Provider	Focus	Corridors	Integration
Bridge	Stablecoin orchestration	Global, mature	API
BVNK	B2B payments	100+ countries	API
Circle	USDC issuer	Global	Mint/Redeem
Deel	Global payroll	150+ countries	Platform
Wise	Consumer/SMB	Limited stable	API

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Activity-to-Player Matrix

Activity	CFO/Treasury	ERP System	Router	Off-Ramp	Supplier
Payment instruction	●	●
Rail selection			●
On-chain settlement			●	○
Off-ramp conversion				●
Local fiat receipt					●
Reconciliation	○	●	●	○

● = Primary responsibility | ○ = Supporting role

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Implementation Sequence

Week 1-2: Discovery

• Map current payment flows by corridor
• Identify top 3 corridors by volume
• Calculate baseline all-in cost

Week 3-4: Integration

• Connect to off-ramp provider APIs
• Configure routing rules
• Set up compliance workflows

Week 5-8: Pilot

• Route 10-20% of one corridor
• Measure cost and velocity
• Refine routing algorithms

Month 3+: Scale

• Expand to additional corridors
• Implement full routing optimization
• Build treasury dashboard

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Context

• Principles — Why these protocols matter
• Performance — How to measure success
• Platform — The technical stack
• Telecom Protocols — The parallel pattern