International remittances using cryptocurrency

With regard to international transactions between us and foreign patent attorneys or international clients, we are currently considering the introduction of international remittances using cryptocurrency as an alternative option to wire transfers through interbank networks.

International money transfers using cryptocurrency have the following advantages over wire transfers:

  1. Low transaction fees (including trading spread)
  2. Payment can be done in a short time.
  3. Reduction in administrative burden related to remittance process

On the other hand, the price volatility of cryptocurrency and the credit risk of token issuers remain a major challenge as can be seen from the recent crash of Terra USD (UST) and the collapse of FTX, a major crypto asset exchange.

In light of these issues, we are currently considering the use of international remittances using DAI, a stablecoin pegged to the US dollar, as an alternative option to traditional wire transfers.

DAI is a decentralized, cryptocurrency-backed stablecoin (ERC-20 standard) minted by MakerDAO, a Decentralized Finance (DeFi) project. The value of DAI is backed by cryptocurrencies deposited on the MakerDAO.

For more information on DAI, see the following links.

Settlement flow using DAI (under consideration)

Send an invoice with wallet address (IPStart -> client)
Notification by email prior to DAI remittance (Client -> IPStart)
DAI remittance (Client -> IPStart)
Acknowledgement of receipt of payment (IPStart -> Client)
Completion of payment process

IPStart plans to become an IP law firm that is capable of accepting settlements using cryptocurrency.

Diagram showing cryptocurrency settlement