A number of licensed exchanges and payment platforms now let users swap Tether (USDT) for major fiat currencies under full compliance.
For example, some European fintechs hold Electronic Money Institution licenses (Lithuania, Estonia, etc.) to convert crypto to fiat via SEPA/SWIFT.
Others are crypto exchanges with local fiat rails. The bullets below outline representative firms, their licenses, and how they implement USDT↔fiat services:
• Kraken (UK, Global): Kraken secured a UK Electronic Money Institution license to offer fiat on- ramps/offs. It supports USDT trading pairs (e.g. USDT/USD, USDT/EUR) and lets users withdraw USD, EUR or GBP via bank transfer under FCA oversight 1 . By KYC’ing customers and holding fiat reserves in banks, Kraken acts as a fiat “off-ramp” for USDT: users sell USDT on the exchange and receive fiat deposits, all while Kraken monitors transactions for AML/CFT compliance 1 .
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• Paybis (UK/Canada): Paybis is registered with FinCEN (US) and FINTRAC (Canada) 2 . It allows customers to sell USDT (ERC-20) and be paid out in euros (via SEPA). Operationally, Paybis generates a unique deposit address for each trade, into which the user sends their USDT 3 . Once the on-chain transfer is confirmed, Paybis wires EUR to the user’s bank account, charging transparent fees. This process requires full KYC of the user and compliance with e-money rules in
Europe.
• CoinsPaid (EU/Latvia): CoinsPaid (Dream Finance) is an EU-licensed crypto payment processor. Its system enables merchants (and users) to accept USDT, BTC, etc., and receive settlements in fiat. It “supports exchange to fiat” for many currencies (USD, EUR, GBP, CNY, INR, MYR, etc.) 4 . Behind the scenes, CoinsPaid runs crypto wallets for USDT on supported chains; when a USDT deposit arrives (user transfers to a provided wallet), CoinsPaid credits the user’s fiat balance and can pay out via SEPA/SWIFT, all under AML/KYC safeguards 5 .
• Bankera (EU/Lithuania): Bankera is an FCA/ECB-authorized e-money institution in Lithuania 6 . Its payment gateway lets online businesses accept USDT or USDC and then convert or receive settlement in 14+ fiat currencies (USD, EUR, GBP, AED, etc. via SEPA/SWIFT) 7 . As a regulated EMI, Bankera holds fiat reserves against received crypto and conducts customer due diligence under EU AML rules 7 6 .
• HashKey Exchange (Hong Kong): HashKey is Hong Kong’s first SFC-licensed crypto exchange (Type 1 dealing, Type 7 ATS) 8 . It lists USDT trading pairs and even a direct USDT/HKD pair 9 . In practice, users can deposit USDT (e.g. ERC-20 or TRC-20) and sell it into HKD on the exchange. HashKey then enables HKD withdrawal via local banks. The exchange enforces Hong Kong’s AML/KYC rules on all accounts. (HashKey also supports USD trading and USD withdrawals to banks.)
• Crypto.com (Singapore/Global): Crypto.com holds a MAS Digital Payment Token (DPT) license and MPI payments license in Singapore 10 , as well as registrations in the EU, UK, and other markets. It supports USDT trading against fiat on its app and exchange. For example, users can sell USDT to top up their fiat wallet (EUR/GBP/USD) and withdraw by bank transfer. Crypto.com adheres to MAS AML regulations, and integrates USDT through on-chain deposit addresses, monitoring transfers to ensure funds are received from verified sources.
• Airwallex (Asia/Global): Airwallex is a fintech (money transmitter) based in HK/Singapore that already handles cross-border fiat. Recent hiring notices show Airwallex is recruiting stablecoin specialists in Hong Kong and Shanghai 11 – a sign it may add tokenized currency rails. In practice, Airwallex would use its licensed banking partners (for SGD, USD, EUR, etc.) and integrate a blockchain layer for USDT, generating deposit addresses and converting received tokens to fiat under its AML program.
• Standard Chartered (Global Bank): Through its crypto arm Zodia Markets, Standard Chartered plans to trade fiat-pegged stablecoins in FX markets 12 . Zodia envisions swapping USDT/USDC/ other-stable tokens (pegged to USD, EUR, GBP, JPY, CAD) directly in its platform 12 13 . Though not a retail exchange, Zodia’s model shows a large bank linking blockchain assets to traditional forex. Standard Chartered also offers fiat FX services (spot, forwards) and has internal compliance systems, using SWIFT/CHAPS rails to settle any fiat part of a swap.
Each company above ensures regulatory compliance (e.g. EMIs with FIN/FCA licenses, banks with payment licenses) and robust AML/KYC. For fiat payments they use standard rails (SEPA/SWIFT for EUR/ USD/GBP, Faster Payments System in the UK, Hong Kong’s Faster Payment System for HKD, etc.), while blockchain integration comes via custodial wallets or node access for USDT. For example, Paybis explicitly instructs users to “send USDT to the address we’ve generated” 3 ; once on-chain confirmation arrives, it credits the fiat output.
Regulation, Compliance and Payment Rails
Companies doing USDT↔fiat conversions must navigate multiple jurisdictions’ rules. In the EU, MiCA (Markets in Crypto-Assets) now requires stablecoin issuers to obtain e-money licenses and hold 1:1 reserves 14 . Tether’s issuer lost EU access after failing to meet MiCA standards 14 . Singapore requires crypto exchanges to obtain MAS licenses (DPT or Major Payments Institution) and meet AML/CFT standards 10 . Hong Kong mandates SFC licensing (as seen with HashKey) and, as of Dec 2024, has introduced a Stablecoin Bill to oversee fiat-backed token issuers 15 . The UAE and Qatar also rolled out crypto/stablecoin licenses in 2024 16 , making Dubai and Abu Dhabi more crypto-friendly (though largely geared to issuers and custodians).
AML/KYC is enforced everywhere. U.S. platforms must register as MSBs with FinCEN and screen customers. EU/UK EMIs apply “know your customer” and transaction monitoring rules. Asian regulators (MAS, SFC, HKMA, VARA, etc.) similarly demand identity verification and sanctions screening. For payment infrastructure, these firms partner with banks: typically using SWIFT or national banking transfers for USD/EUR/GBP, while also integrating local rails – e.g. in Hong Kong, exchanges can connect to banks’ Faster Payment System (FPS) channels 17 ; in Europe, SEPA; in Australia/NZ/Asia, local RTGS or FPS networks.
Blockchain Integration
On the crypto side, firms integrate USDT by running or accessing blockchain nodes (Ethereum, Tron, etc.) and wallets. A user who wishes to convert USDT to fiat instructs the platform to exchange it, then sends USDT tokens to a deposit address controlled by the platform. For example, Paybis’s help page shows a user depositing USDT to a generated ERC20 address 3 . Once the transfer has enough confirmations, the company credits the user in fiat. Back-office systems must “watch” these on-chain transactions for AML compliance (blocking blacklisted addresses, for example). Payment providers often use centralized custody or hot wallets; some large crypto banks (e.g. Sygnum, which supports stablecoins) securely custody deposits and then handle fiat settlement via traditional banking 18 . All
platforms declare explicit crypto-to-fiat fees (blockchain gas fees + service fee) and ensure parity of value (stablecoins like USDT are pegged 1:1 to USD, as noted in their literature 3 ).
Outlook: China’s Digital Yuan (e-CNY)
China’s e-CNY is a state-run CBDC, not a market token. It’s designed for domestic digital payments and currently cannot be freely exchanged for other currencies 19 . Cross-border use is limited to controlled pilots. For example, Hong Kong’s central bank (HKMA) is running a cross-boundary e-CNY pilot: residents can obtain e-CNY wallets and top them up via Hong Kong’s Faster Payment System 17 . Top-ups/redemptions occur through linked banks (17 banks in HK participate) 17 . Standard Chartered China recently joined an e-CNY pilot: it enables customers to top-up and redeem e-CNY wallets via the bank’s apps 20 . Standard Chartered HK also participated in the BIS mBridge project (a wholesale CBDC settlement test) 21 .
Technical and regulatory steps are underway: China plans an “international e-CNY operations center” in Shanghai to push global usage 22 . Regulators acknowledge that U.S.-dollarstablecoins are influencing payments 23 24 . Chinese tech giants (JD.com, Ant) are lobbying for offshore yuan stablecoins in Hong Kong to promote RMB internationalization 24 . Hong Kong’s new Stablecoin Bill (Dec 2024) explicitly permits issuance of yuan- or HKD-pegged stablecoins under licence 15 24 . Meanwhile, Chinese exporters are already using USDT for trade payments 25 .
Implications: No major FX/crypto platform currently offers e-CNY swaps because e-CNY isn’t an open token. Any e-CNY support would require PBOC permission or an offshore yuan stablecoin scheme. In practice, deliverable-FX firms may instead focus on regulated yuan-pegged coins (if Hong Kong allows them) or on keeping USD/EUR rails. Until China liberalizes CBDC cross-border flows, USDT ↔ e-CNY on- ramps remain unlikely. Companies keen on China’s market (e.g. Standard Chartered, Airwallex, Crypto.com) will monitor regulatory developments (HK pilot, BIS mBridge, PBOC strategy) to decide if and how to integrate e-CNY or RMB stablecoins in the future.
Sources: Regulatory filings, company announcements, and financial media reports were used. Examples above are drawn from sources such as Kraken’s FCA filings 1 , Paybis and CoinsPaid FAQs
3 5 , HashKey stats 8 9 , Crypto.com news 10 , and industry reports on stablecoin regulation and e-CNY pilots 15 20 22 . These sources detail licenses, AML/KYC practices, payment rails, and blockchain flows in context.
1 Kraken authorized as Electronic Money Institution (EMI) with UK license | Cryptopolitan https://www.cryptopolitan.com/kraken-authorized-as-electronic-money-institution-emi-with-uk-license/
2 3 Sell USDT (Tether) Instantly | Paybis https://paybis.com/withdraw-usdt-to-bank-account/
4 5 All Frequently Asked Questions in One Page https://coinspaid.com/faq/
6 7 Payment Gateway | Bankera https://bankera.com/payment-gateway/
8 9 HashKey Exchange Statistics: Markets, Trading Volume & Trust Score | CoinGecko https://www.coingecko.com/en/exchanges/hashkey-exchange
10 Crypto.com Obtains Major Payment Institution Licence from Monetary Authority of Singapore
https://crypto.com/en-au/company-news/crypto-com-obtains-major-payment-institution-licence-from-monetary-authority- of-singapore
11 〖出海周报〗北上深聚焦稳定币 欧盟《加密资产市场监管法案》持牌名单出炉 空中云汇有意入局稳定币-移 动支付网
12 13 StanChart’s Zodia Markets gearing up for stablecoin forex market debut – Blockworks https://blockworks.co/news/stanchart-crypto-stablecoin-forex-market
Analysis of the 2024 Blockchain Security and Anti-Money Laundering Annual Report: AML
Trends & Data | by SlowMist | Medium
https://slowmist.medium.com/analysis-of-the-2024-blockchain-security-and-anti-money-laundering-annual-report-aml- trends-data-8d32656e5992
17 Hong Kong Monetary Authority – Expanding the cross-boundary e-CNY pilot in Hong Kong https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240517-3/
18 Sygnum Bank | Regulated Digital Asset Banking https://www.sygnum.com/
19 Explainer | The world is going all in on stablecoins. Is China’s digital yuan any different? | South China Morning Post
https://www.scmp.com/economy/china-economy/article/3316651/world-going-all-stablecoins-chinas-digital-yuan-any- different
20 21 Standard Chartered China participatesin e-CNY business pilot
22 23 China talks up digital yuan in push for multi-polar currency system | Reuters
https://www.reuters.com/markets/currencies/chinas-central-bank-says-promote-digital-yuan-multi-polar-currency- system-2025-06-18/
24 25 China’s tech giants lobby for offshore yuan stablecoin, sources say | Reuters
