You’ve probably heard someone mention USDT, USDC or digital dollars. Maybe a client has offered to pay you in USDT, or you've seen people talking about keeping their money in stablecoins instead of converting it to Naira.
If you've ever wondered what any of that means, you're not alone.
Stablecoins are becoming another way people receive payments, hold money and send funds across borders. But before using them, it's worth understanding what they are, how they work and how they differ from the dollars you keep in a bank account.
And if you're curious about managing different currencies in one place, you can explore Send App and see which balances are currently available to you.
We'll start with the basics.
What’s a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a steady value, usually by linking its price to a traditional currency like the US dollar.
For example, USDT, USDC and Ripple USD (RLUSD) are all designed to maintain a value close to $1 per token.
In simple terms:
1 USDC ≈ $1
1 USDT ≈ $1
1 RLUSD ≈ $1
So, if someone sends you 100 USDC, those tokens are designed to be worth approximately $100.
This is different from cryptocurrencies like Bitcoin, whose prices can rise or fall significantly within a short period.
The aim of a dollar-backed stablecoin isn't for its price to keep increasing. It's to stay as close as possible to the value of the dollar.
That doesn't mean the value can never change. Stablecoins can sometimes trade for slightly more or less than $1, and the amount you get when converting them depends on the exchange rate and any applicable charges.
How do stablecoins work?
Think about what happens when someone sends money to your bank account.
The bank records the payment, updates your balance and allows you to use the money.
With stablecoins, the process works differently.
Instead of moving money through traditional banking systems, stablecoin transactions are generally recorded on a blockchain, a digital network that keeps track of transactions.
You hold and manage the stablecoins through a digital wallet or a financial platform that supports them.
For example, someone in another country could send you USDC from their wallet. Once the transfer is successful, the USDC appears in your receiving wallet, where you can hold it, send it elsewhere or convert it through a supported service.
The transaction doesn't necessarily need to pass through the same process as an international bank transfer.
That said, the speed, cost and availability of a transfer depend on the blockchain network and the platform you're using.
There's also a reason these currencies are designed to stay close to $1.
For stablecoins backed by traditional financial assets, the issuing company maintains reserves intended to support the value of the tokens in circulation. These may include cash and short-term government securities.
The exact arrangements differ between issuers, which is one reason it's important to understand the stablecoin you're using.
What's the difference between USDT, USDC and RLUSD?
All three are designed to maintain a value close to the US dollar. The main differences are the companies that issue them, how their reserves are managed and the networks on which they're available.
Ripple USD (RLUSD)
Ripple USD, or RLUSD, is a dollar-backed stablecoin associated with Ripple and issued by its subsidiary, Standard Custody & Trust Company.
It's designed to maintain a value close to one US dollar and can be used through compatible wallets and financial services.
USDC
USDC is issued by Circle and is also designed to maintain a value of approximately $1.
It's used for digital payments, transfers and other transactions across supported blockchain networks.
USDT
USDT, also called Tether, is issued by Tether.
Like USDC and RLUSD, it's designed to maintain a value close to the dollar and is used across various wallets, exchanges and payment platforms.
One thing to remember: USDT, USDC and RLUSD are not the same currency.
If someone wants to send you USDT, you need a wallet or service that supports USDT. You can't simply give them receiving details meant for USDC or RLUSD and expect the payment to work.
The blockchain network matters too.
Why would someone in Nigeria use stablecoins?
There are several reasons someone might choose to use stablecoins, particularly if they regularly receive money from abroad or deal with international payments.
Getting paid by clients abroad
Say you're a designer in Lagos working with a client in the UK.
You've completed a project worth $500, and your client asks if they can pay you in USDC.
If both of you use compatible services, they can send the payment to your supported wallet.
You can then decide whether to keep the USDC, convert it to Naira or send it elsewhere.
It's another way to receive international payments, although you still need to consider the fees, supported networks and any restrictions that apply.
Keeping money until you need it
Sometimes, you receive money but don't need to spend it immediately.
You might have an international payment coming up, or you may simply prefer to hold dollar-linked value before deciding what to do next.
A supported stablecoin wallet gives you that option.
However, holding USDC or USDT doesn't guarantee a particular Naira value. If the exchange rate changes, the amount you receive when converting to Naira can also change.
Sending money to someone in another country
If you and the recipient both have compatible wallets, you may be able to send stablecoins directly.
Depending on the network, the transaction could be completed relatively quickly.
It's particularly important to check the receiving details before sending, because some blockchain transfers cannot be reversed.
How do you receive and use stablecoins?
You don't need to understand every technical detail of blockchain to use stablecoins. But there are a few steps you should be familiar with.
Step 1: Choose a wallet or supported platform
You'll need a digital wallet or financial app that supports the stablecoin you want to use.
Before choosing one, check which stablecoins and blockchain networks it supports, whether you can convert your balance to Naira and what fees apply.
Step 2: Get your receiving details
When you're ready to receive a stablecoin, your wallet or platform will provide the relevant receiving details.
These usually include a wallet address and supported blockchain network.
You can share the correct details with the person sending the funds.
It's important to check that the sender is using the same stablecoin and a compatible network.
For example, if you're receiving USDC, don't provide receiving details for USDT.
Step 3: Receive and check your balance
Once the sender completes the transfer and the transaction is processed, the stablecoins should appear in your wallet.
The time this takes will depend on the network and platform.
Before making another transaction, check that the amount received is correct.
Step 4: Hold, convert or send
After receiving the stablecoins, what happens next is up to you and the options supported by your wallet.
You can keep them in your balance, convert them into another supported currency or send them to someone else.
If you're converting to Naira, check the rate and any fees before confirming.
If you're sending to another wallet, double-check the address and network.
It's a small step that can prevent a costly mistake.
Can you convert USDT or USDC to Naira?
Yes. Some platforms allow you to convert supported stablecoins directly to Naira.
Let's say you receive 100 USDT and want to use the money for a local expense.
You would open a platform that supports USDT-to-NGN conversion, enter the amount you want to exchange and review the available rate.
If the rate were ₦1,500 to $1, and each USDT were worth exactly $1, the conversion would be worth approximately ₦150,000 before fees.
That's only an example, not a live exchange rate.
The amount you actually receive will depend on the rate offered, the stablecoin's value and any charges.
Always check the final amount before confirming a conversion.
Are stablecoins safe?
Stablecoins can be useful for payments and money transfers, but there are risks worth knowing about.
First, their value isn't guaranteed. Although dollar-backed stablecoins are designed to stay close to $1, they can lose that value under certain circumstances.
Second, the company behind the stablecoin matters. Different issuers have different reserve arrangements, operating structures and levels of transparency.
There are also risks when transferring funds.
Sending stablecoins to the wrong wallet address or through an unsupported network could result in a permanent loss of money.
And while stablecoins may be worth approximately the same as dollars, they aren't the same as money held in a bank account. They may not offer the same protections.
It's also worth knowing that simply holding stablecoins doesn't automatically earn you interest. Products offering returns on stablecoins are separate arrangements and come with their own risks.
Before using any stablecoin, take time to understand the platform, its fees and the currency you're receiving.
What about stablecoins on Send App?
Send App is expanding how people can manage money across currencies.
With Multi-Currency Accounts, eligible users can manage supported currencies such as NGN, USD, GBP and EUR within the app.
Send App has also developed stablecoin functionality covering Ripple USD (RLUSD), USDC and USDT.
When these features are available to your account, you'll be able to access the supported stablecoin services directly within Send App, including receiving, holding, converting and sending.
The idea is to give people who manage money across different currencies another option without having to use a separate app for every transaction.
Availability depends on your location, account verification status and the features currently enabled.
How to get started on Send App
When stablecoin functionality is available to your account:
Open Send App and log in.
Go to Balances.
Select the supported stablecoin you want to use.
Follow the instructions provided to receive, hold, convert or send.
If you're new to Send App, you'll need to create an account and complete the required verification first.
Creating a Multi-Currency Account is free, with no monthly maintenance fees. However, certain transactions, such as conversions and external transfers, may attract charges.
Always check the fees and available options in the app before proceeding.
So, should you use stablecoins?
That depends on what you need.
If you receive money from international clients, make payments across borders or want another way to hold dollar-linked value, stablecoins may be worth understanding.
But they aren't a replacement for every type of bank account or payment method.
What matters is choosing a service that supports what you want to do, understanding the risks and checking the details before moving your money.
And if you come across USDT, USDC or RLUSD again, you'll know what they are and why someone might choose to use them.
Want to see what currencies are available to you?
Open Send App, head to Balances and explore the options available to your account.
Disclaimer: Stablecoins are digital assets, not bank deposits. Their value may fluctuate, and transactions carry risks. Availability, fees, supported networks and conversion options vary by platform and account eligibility. This article is for educational purposes only and does not constitute financial or investment advice.