Anyone have any ideas for a way to move ckUSDC into USD at a very fast rate looking to build an app but some of the off chain services that will be tired in would need some of the funds that are moved in escrow. I’m having trouble finding anyone that will take ckUSDC and exchange for USD the app is built and I’m ready to go into a closed BETA testing but there is Web2 services that are coded in and needed that needs paid for by the fees,
If you’re interfacing with web2 services anyway, could you have your own web2 service do the fast USD payments and convert the ckUSDC later?
Basically you would do something like:
- Setup a web2 service (call it X) and seed it with some USD
- Send ckUSDC to an account controlled by X
- Notify X that you’ve transfered the ckUSDC
- X pays the web2 services on your behalf and sends you the proof
- X converts ckUSDC to USD asynchronously (this can be slower and settle eventually)
I believe this is a very large undertaking from a regulatory and compliance perspective, likely exceeding the complexity and capital requirements involved in building a DEX or transfer protocol.
The technical implementation on ICP may be the simpler part. The greater challenge is navigating the various multi-jurisdictional regulatory requirements layered on top.
The key participant is ultimately the regulated fiat entity, which needs sufficient incentives and legal clarity to support this model. In practice, it may actually be easier for some institutions to work directly with ICP rather than ckUSDC, since in several jurisdictions the legal classification of ckUSDC may not be entirely clear.
It’s also worth remembering the previous situation where ckUSDC was frozen following a court order, and no formal incident report was published by Dfinity. The public communication indicated the freeze was related to a court order, while it was later suggested that the matter was resolved through discussions with Circle. From an external perspective, that created some uncertainty around the process and governance involved.
For a regulated fiat entity considering integration or bridging support for ckUSDC, events like that could understandably raise additional risk and compliance questions.
There is also the broader concern that if ckUSDC volumes were to become substantial, Circle could again intervene unless the necessary infrastructure and formal relationships were in place for them to comfortably support and recognize the bridge setup.
If you still want to pursue this direction, it may be worth considering native USDC through a multichain approach using an affordable and fast EVM L2.
There are a few companies you can talk to, but honestly, best approach may be one where you use USDC in other blockchains, for now.
Then you can have instant payment, perhaps even real time fiat settlement.
Just a quick response on the ckUSDC incident. What you describe is mostly what happened, and we don’t have much more detailed information either because the court case is sealed.
- The ckUSDC minter address was named in the mentioned sealed court case. We don’t know who is involved in the court case and what it is about.
- We communicated with Circle and the plaintiff lawyer (this is literally the only thing we know about the case), and convinced them that the ckUSDC minter is a public service and therefore not an address relevant to the case.
- That solved it.
It just took a few days because of legalese communication. That’s it. There’s not more that we could communicate.