Stablecoin Payments Glossary
Exchange Rate Lock
An exchange rate lock is a time-limited commitment by a provider to honor a quoted conversion rate for a specified payment or exchange if the stated conditions are met.
Explanation
Stablecoin payment providers can quote the amount of stablecoin required for a fiat-denominated purchase and hold that quote for a short period. The provider bears or manages the market risk during the lock and can specify conditions concerning payment timing, amount, supported network, and transaction confirmation. If the customer pays after the quote expires, a new rate or adjustment can apply.
Why it matters
Rate locks allow merchants and customers to know the required payment amount while the transaction is being initiated and transmitted.
Example
A checkout can quote 100.20 USDC for a CHF-denominated purchase and honor that conversion amount for ten minutes.
Related terms
Last reviewed: September 2026