Bitcoin's price volatility is generally beneficial as it improves the purchasing power of Bitcoin over time. However, for those using Bitcoin for everyday expenses, the volatility can pose challenges. To address this, Galoy created Stablesats.
Stablesats represent “synthetic dollars” (where $1 in Stablesats equals $1 USD worth of satoshis) and can be seamlessly sent, received, and held within the Blink wallet. Utilizing Stablesats provides a stablecoin-like experience without the additional expenses and complexities often associated with stablecoins.
To receive on your Dollar account:
Now you can convert your Bitcoin to USD instantly:
Keep your money out of the volatility and transact with your Dollar account. When you make a payment, we deduct the USD amount and send bitcoin to the recipient.
To send money from your Dollar account you need to:
1. Scan or enter the recipient address
2. Select to send from your Dollar account
The only way to store value with no counterparty risk is to hold bitcoin in cold storage according to best practices. All other means of transacting and storing value, including the Dollar account feature, involves some level of risk. To offer the ability to protect funds in your Blink wallet from volatility, the Dollar account feature utilizes the bitcoin derivatives market, specifically a "perpetual inverse swap," relying on exchanges for contract execution. In the event of negative occurrences on the Exchange, collateral Bitcoin may become unrecoverable and the funds held in your Dollar account could be lost or caught in legal proceedings.
To mitigate these risks, the Blink team conducts ongoing monitoring, improvements, and risk assessments aimed at reducing the inherent risks associated with offering the Dollar account. There is also ongoing development of the open source Stablesats project aimed at adding additional exchanges, which will further de-risk the product.
Learn more about what we do to keep funds safe: Know your custodian
Please check out the Stablesats website and our FAQ page where we deep dive into what Stablesats are. If you have any other questions, reach out to our team.
Start receiving and sending bitcoin now
