Denver-based bitcoin remittance startup bridge21 announced that it has added 38 new banks to its partner bank roster to enable more U.S.-based individuals to make international money transfers from the U.S. to Mexico.
bridge21’s new banking partners include Bank of America, Citibank, Chase, Fidelity, SunTrust Bank, TD Bank and Wells Fargo, among others. The new additions increased the startup’s partner bank network to 58 banks and credit unions in the U.S.
To provide its low-cost cross-border payment service, bridge21 leverages bitcoin to process the money transfers, while its customers deal purely in fiat currency. That means that users will decide on the amount of U.S. dollars they want to send to Mexico or the amount of Mexican pesos they want their recipients to receive. Once the user has agreed to the conversion rate and has initiated the transfer on bridge21’s platform, the startup then buys bitcoin in the U.S. with dollars and sells them for pesos in Mexico.
Also, as bridge21 uses bitcoin instead of the banking network to conduct its cross-border payments, it can do so at a much lower cost which results in better exchange rates for its customers and a 1 percent fee per money transfer. According to the …read more