---
title: "What does best execution mean for a stablecoin payout? Price, cost, speed, and proof"
seoTitle: "Best execution for stablecoin payouts, explained"
description: "Best execution for a stablecoin payout is the best total result, not the best rate. The six factors, how to weigh them, and the records to keep."
date: "2026-10-01"
updated: "2026-10-01"
category: "payments"
author: "BlindPay Team"
faq:
  - q: "What is best execution in FX?"
    a: "Best execution means taking sufficient steps to get the best overall result for a client, not just the best headline price. In securities law, MiFID II lists the factors: price, costs, speed, likelihood of execution and settlement, size, and nature of the order. Spot FX for payments usually falls outside that rule, but the same factor list is a useful test for any conversion."
  - q: "Does best execution apply to stablecoin payouts?"
    a: "Not as a legal duty in most cases. MiFID II's best execution rule is written for investment firms executing orders in financial instruments, and a payout conversion is a payment. But finance teams, auditors, and boards still ask the same question: did we get a fair, total result for this payout? A written policy and quote records are how you answer it."
  - q: "Is the best exchange rate always best execution?"
    a: "No. A quote with a slightly better rate can deliver on a slower rail, fail more often, or carry fees outside the rate. Best execution weighs the amount received, the time to funds, and the chance the payout settles on the first try. A payout that fails and has to be quoted again can cost more than the rate saved."
  - q: "What records prove best execution on a payout?"
    a: "Keep the quote ID and timestamp, the market rate and the rate you got, every fee line, the amounts sent and received, a mid-market reference captured at the same minute, any competing quotes, and the final status with its settlement time. BlindPay quotes return commercial_quotation, blindpay_quotation, flat_fee, partner_fee_amount, sender_amount, and receiver_amount for this."
  - q: "How often should a finance team review payout execution?"
    a: "Monthly is a practical cadence for most payout programs. Pull the month's quotes and outcomes, compute effective cost against mid-market per corridor, check failure and settlement times by rail, and compare against any competing quotes. Review sooner when volume jumps, a new corridor launches, or a currency has a volatile week."
  - q: "What does the FX Global Code say about mark up?"
    a: "Principle 14 says the mark up applied by a dealer acting as principal should be fair and reasonable. It asks dealers to make clear that the final price may include mark up, that different clients may get different prices, and which factors drive it. Principle 13 adds that both sides should understand how reference prices are set."
---

Best execution for a stablecoin payout is the best total result for the payout, not the best exchange rate. It weighs the amount the recipient receives, every fee, the time to funds, and the chance the payout settles on the first try. Proving it takes a written policy and a record of each quote.

The phrase comes from securities law, where it is a legal duty. For a payout it is usually a governance question: when an auditor or a board asks "did we get a fair deal on this conversion," what do you show them? [How on/off-ramp providers make money](/resources/more/how-onramp-offramp-providers-make-money) explains what you pay for. This page explains how to show you paid a fair amount.

**Key takeaways**

- Best execution is the best overall result: price, costs, speed, likelihood of settlement, size, and the nature of the payout.
- The best rate can lose once you count failed payouts and slow rails.
- The FX Global Code asks dealers for fair, reasonable, disclosed mark up. Your policy can ask the same of providers.
- The proof is records: the quote, a mid-market reference at the same minute, competing quotes, and the outcome.
- Review monthly by corridor, and decide in writing how you weigh cost against speed.

## Where does the term best execution come from?

From securities regulation. MiFID II, Article 27, requires investment firms to "take all sufficient steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order" ([ESMA Interactive Single Rulebook](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mifid-ii/article-27-obligation-execute-orders)).

That rule is written for orders in financial instruments. A stablecoin payout is a payment, so it usually sits outside it. The factor list still travels well. It is the most precise short definition of "a good result" for any conversion, and it gives finance teams words that auditors already recognize.

The wholesale FX market has its own standard. The FX Global Code, Principle 14, says a dealer's mark up "should be fair and reasonable" and asks dealers to make clear "that their final transaction price may be inclusive of Mark Up" ([FX Global Code](https://www.globalfxc.org/fx_global_code.htm)). Principle 13 asks both sides to understand how reference prices are established.

## What are the six factors for a stablecoin payout?

The same six factors MiFID II lists, translated to a payout. Price and costs set the amount received. Speed and likelihood of settlement set when, and whether, the money arrives. Size and the nature of the payout decide which of the others matters most for a given payment.

| Factor | What it means for a payout | How to measure it | Evidence to keep |
| --- | --- | --- | --- |
| Price | The rate you got vs the market rate | Quoted rate vs mid-market at the same minute | Quote, reference rate and its source |
| Costs | Every fee line, plus network and bank costs | Mid-market value minus amount received | Itemized quote fields |
| Speed | Time from execute to funds in the recipient's account | Execute timestamp to `completed` timestamp | Status history per payout |
| Likelihood of settlement | Chance the payout lands on the first try | Failure and return rate by rail | Failed payouts and their reasons |
| Size | Whether the price holds at your amount | Quotes at several sizes | Quote ladder results |
| Nature | Who receives it and how urgent it is | Payroll, supplier, refund, treasury | Payout category in your ledger |

[How to test off-ramp liquidity depth](/resources/more/test-offramp-liquidity-depth) covers the size factor with a quote ladder. [Most liquid currency pairs](/resources/more/most-liquid-currency-pairs-payout-pricing) explains why price varies so much by corridor.

## Why can the best rate lose?

Because rate is one factor of six. A provider can quote a tighter rate and deliver on a slower rail, fail more often, or charge fees outside the rate. Each failed payout has its own cost: a new quote at a market that may have moved, someone's time to fix the bank details, and a recipient who waits.

**Illustrative example.** You pay 50,000 USDC to a supplier in Mexico, monthly. Mid-market is 18.50 MXN per USDC, so the mid-market value is MX$ 925,000. Assume each failed payout costs an adverse move of 0.5% on the retry plus $50 of team time, about MX$ 5,550 in total.

| | Route A | Route B |
| --- | --- | --- |
| Rate vs mid | 0.40% under | 0.50% under |
| Cost in the rate | MX$ 3,700 | MX$ 4,625 |
| Failure rate (assumed) | 2% | 0.2% |
| Expected failure cost | 0.02 × 5,550 = MX$ 111 | 0.002 × 5,550 = MX$ 11.10 |
| Expected total cost | MX$ 3,811 | MX$ 4,636.10 |
| Time to funds | Next business day | Minutes |

Route A still wins on expected cost by MX$ 825.10. Route B wins on speed by about a day. Neither is "best" until you decide what the payout is for. A supplier with a 30-day term takes Route A. Payroll on a Friday afternoon takes Route B. These numbers are assumptions, not any provider's pricing.

That decision belongs in a written policy, made once, not argued payout by payout.

## How should you weigh cost against speed?

Write the weights down per payout type, then apply them every time. Most teams use a short ranking: for payroll, speed and settlement certainty come first; for supplier payments on terms, cost comes first; for refunds, certainty comes first. The ranking turns a judgment call into a rule you can audit.

A workable policy fits on one page:

1. **Payout types.** List the three to five kinds of payout you make.
2. **Ranking per type.** Order the six factors for each one.
3. **Thresholds.** For example: "route to the cheaper quote unless it adds more than one business day for payroll."
4. **Reference rate.** Name the mid-market source and the capture time, for example the minute the quote is created.
5. **Review cadence.** Monthly, plus a trigger for volume spikes and volatile weeks.

[Who carries FX risk in a stablecoin payout](/resources/more/who-carries-fx-risk-stablecoin-payout) helps with the speed side: the longer funds sit between steps, the more exchange rate risk someone holds.

## What records prove best execution?

The quote and the outcome, plus a reference you captured yourself. If you only keep the provider's rate, you can't show it was fair. If you only keep a market rate, you can't show what you paid. Keep both, at the same minute, with every fee line.

For every payout, store:

- Quote ID, creation time, and expiry.
- The market rate on the quote and the rate you got.
- Every fee line and the amounts sent and received.
- A mid-market reference rate, its source, and its timestamp.
- Any competing quotes for the same corridor and size, taken at the same time.
- Final status, settlement time, and the reason for any failure.

BlindPay quotes carry most of this. A payout quote returns `commercial_quotation`, the raw market rate, `blindpay_quotation`, the rate net of BlindPay's fee, plus `flat_fee`, `partner_fee_amount`, `billing_fee_amount`, `sender_amount`, `receiver_amount`, and `expires_at` ([payout quotes docs](/docs/payout-quotes)). Quotes lock for 5 minutes. Fees vary by rail and network and are disclosed in the live quote before execute; BlindPay does not publish a static rate card, so the quote record is the evidence.

For speed and settlement, BlindPay's rule of thumb is that Pix, PIX Safe, SPEI, and Transfers 3.0 settle in minutes, RTP is instant, and ACH, wire, TED, ACH Colombia, and SEPA take about 1 to 2 business days ([payment methods](/docs/kb/payment-methods)). Log your own times anyway. The policy should rest on what you observed.

## How do you run a monthly execution review?

Pull the month's quotes and outcomes, group them by corridor and payout type, and check each against the policy. The output is a one-page summary a controller can sign: effective cost per corridor, failure rate per rail, median time to funds, and any payout that broke a threshold, with the reason.

Four numbers per corridor cover most of it:

1. Effective cost: mid-market value minus amount received, as a percentage.
2. Failure rate: failed payouts divided by payouts attempted.
3. Median time to funds: execute to completed.
4. Expired-quote rate: quotes that lapsed before execute, a sign the approval flow is too slow for the window.

If a corridor drifts, request competing quotes for a week and compare. [The free option inside a locked quote](/resources/more/locked-quote-free-option-last-look) explains why quote windows are short and why providers watch how often quotes lapse, which is one more reason to keep approvals fast.

## What to do next

Write the one-page policy for your top payout type this week. Then export last month's BlindPay quotes and payouts, capture a mid-market reference for each, and compute the four review numbers. The [payout quotes docs](/docs/payout-quotes) list the fields to export.