An on-ramp converts fiat money or another conventional payment instrument into digital assets, while an off-ramp converts digital assets into fiat money or another conventional form of funds.
Ramps can be provided by exchanges, banks, payment companies, brokers, or other regulated service providers. The process can involve customer identification, payment methods, foreign exchange, liquidity, custody, blockchain transfers, and bank settlement. For cross-border stablecoin payments, ramps often determine the total cost and accessibility of the payment even when the blockchain transfer itself is fast.
The on-ramp and off-ramp are conversion and access points between financial systems. They are distinct from the blockchain transfer that occurs between them.
Ramp availability determines whether users can move efficiently between stablecoins and the local currencies or payment instruments used in their economy.
A customer can use a bank transfer to buy USDC through an on-ramp and later sell USDC through an off-ramp that pays local currency into a bank account.