Cheapest broker for USDC/USD conversion for a corporation

Investing / Cryptocurrencies
1

Hi everyone,

My LLC receives roughly $500k per year in USDC and I am looking for the cheapest broker to cash out to USD (to my Swiss USD account and ultimately to IBKR). So far I have looked at:

  • Kraken: 0.2% exchange fee → $1,000 fees per year
  • Lykke: No fees, but liquidity for USDC is quite low and the spread would usually be 0.12% → $600 fees per year
  • Coinbase: Free for individuals, but I talked with them and they have fees for corporations (you are not allowed to disclose them, but they are quite high).
  • Binance: SWIFT transfers currently halted, so I would not be able to cash out. Might otherwise be a viable option, but I would need to check with them.

Do you know a better option? Ideally, I would like to not pay $600 just to swap USD to USD…

2

I recently looked at crypto exchanges that allow deposit/withdraw fiat money, although I was more interested in CHF and EUR.

You can check Gemini, but their trading fees are higher than Kraken’s. Bitfinex, trading fees are quite okay.

If Kraken works for you (and it is 0.26%), I would suggest to just go with them. They have just survived SEC investigation, it is worth something.

3

They have a different fee structure for stables, 0.26% is Crypto spot: https://www.kraken.com/features/fee-schedule#stablecoin-pegged-token-fx-pairs

But true, going with a somewhat trustworthy broker might save you tens of thousands of dollars when the alternative halts withdrawals just when you want to cash out. I also contacted Circle directly, they have free redemption for personal accounts, let’s see what their business fees are. And if Circle goes down, you have a problem no matter which Broker you use, so probably the safest option.

4

Use Revolut Metal → USD account in UK → Binance withdraw thru SEPA works afaik

5

I’d just go with Coinbase. $600 on $500k is peanuts. I don’t want to be pissing around with the likes of FTX and Binance.

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6

I opened a Circle account in the mean time, that works really well and is as risk free as you can get (if they go bust, USDC will depeg anyway). I do a redemption there every month, completely free and the money arrives 4 hours later on my USD bank account (which was pretty surprising to me, they send it from a US bank account and these transfers usually take 2-3 days).

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