--- title: "What is a non-deliverable currency? BRL, COP, and ARS, and how USDC payouts reach them" seoTitle: "What is a non-deliverable currency? BRL, COP, ARS" description: "Why offshore markets trade BRL, COP, and ARS through NDFs that settle in dollars, and how a stablecoin payout still delivers real reais and pesos onshore." date: "2026-09-28" updated: "2026-09-28" category: "payments" author: "BlindPay Team" faq: - q: "What is a non-deliverable currency?" a: "It is a currency that offshore markets trade without delivering it, usually because of rules on foreign access to the local FX market. Instead of swapping the real currency, offshore traders use non-deliverable forwards that settle the gain or loss in a widely traded currency such as the US dollar. The Brazilian real is a classic example." - q: "What is an NDF?" a: "A non-deliverable forward is a contract for the difference between an agreed exchange rate and the actual spot rate at maturity, settled with a single payment. The BIS describes NDFs as a key instrument for offshore trading in emerging market currencies. Nobody receives reais or pesos, only a net cash settlement, usually in dollars." - q: "Can I pay a supplier in Brazil with an NDF?" a: "No. An NDF only settles a price difference, typically in dollars, so no reais ever reach a Brazilian bank account. It can hedge the rate you will pay later, but the supplier still needs an onshore payment in reais. That delivery has to come through a local rail such as Pix or TED, run by an institution operating in Brazil." - q: "How does a USDC payout deliver BRL or COP if the currency is non-deliverable offshore?" a: "The conversion and the payout happen onshore. A payout provider converts the stablecoin through local liquidity and pays the recipient over a domestic rail: Pix, PIX Safe, or TED in Brazil, ACH Colombia in Colombia, and Transfers 3.0 in Argentina. The offshore NDF restriction doesn't apply because the local currency never has to be delivered offshore." - q: "Is the Argentine peso traded through NDFs?" a: "Yes, historically. In January 2002 the New York Fed's Foreign Exchange Committee issued a statement on settling outstanding Argentine peso NDF transactions after Argentina's exchange rate reform law. Argentina's FX rules have changed many times since, so check current conditions with a local advisor before relying on any specific structure." --- A non-deliverable currency is one that offshore markets trade without actually delivering it. Because of limits on foreign access to the local FX market, traders use non-deliverable forwards (NDFs) that settle only the gain or loss, usually in US dollars. The Brazilian real and Colombian peso trade this way offshore. A stablecoin payout delivers them onshore, over local rails. That distinction matters the moment you need to pay someone, not just hedge. An NDF can never put reais in a supplier's account. Here is why, and what does. **Key takeaways** - An NDF is a contract for the difference between an agreed rate and the spot rate at maturity, settled in one payment. - The BIS calls the NDF "a key instrument in EME currencies' offshore, but not onshore, trading." The real is one of the biggest NDF currencies. - NDF settlement is usually in a widely traded currency such as the dollar. No local currency moves. - Paying a supplier requires onshore delivery: Pix or TED in Brazil, ACH Colombia, Transfers 3.0 in Argentina. - A stablecoin payout converts and pays onshore, so the offshore delivery restriction never comes into play. ## What makes a currency non-deliverable? Rules, mostly. A currency becomes non-deliverable offshore when foreigners can't freely access the local FX market or move the currency out of the country. Risk.net's glossary says NDFs are "primarily used for hedging or speculating in currencies with trade restrictions" and are "settled in a widely traded currency, such as the US dollar, rather than the original currency" ([Risk.net](https://www.risk.net/definition/non-deliverable-forward-ndf)). The BIS traced how NDF markets grew out of "restrictions on foreign participation in domestic FX markets and on offshore deliverability" ([BIS Quarterly Review, December 2016](https://www.bis.org/publ/qtrpdf/r_qt1612h.htm)). That article names the Brazilian real among the six emerging market currencies singled out in the Triennial survey, and notes that data show "Chilean and Colombian pesos also have sizeable NDF trading." "Non-deliverable" describes the offshore market, not the currency itself. Inside Brazil, reais are perfectly deliverable. Pix moves them in seconds. ## How does an NDF actually settle? With a single net payment, usually in dollars, based on the difference between the contract rate and a fixing rate on the settlement date. No reais or pesos change hands. **Illustrative example.** A US importer expects to owe R$5,500,000 in three months and buys USD/BRL through an NDF at 5.50 on a $1,000,000 notional. At maturity, the fixing rate is 5.60. | Step | Calculation | Result | | --- | --- | --- | | Contract rate | Agreed today | 5.50 BRL per USD | | Fixing rate at maturity | Published reference | 5.60 BRL per USD | | BRL notional | 1,000,000 x 5.50 | R$5,500,000 | | Dollar value of that BRL at the fixing | 5,500,000 / 5.60 | $982,142.86 | | Net settlement to the importer | 1,000,000 - 982,142.86 | $17,857.14, paid in USD | The real weakened, so the importer's hedge paid out $17,857.14. But the supplier is still owed R$5,500,000, and the NDF delivered zero reais. The importer still has to buy reais and get them into a Brazilian account. If the direction of USD/BRL trips you up, [how to read an FX quote](/resources/more/how-to-read-an-fx-quote) walks through base and quote currencies. ## Why can't an offshore NDF pay a supplier in Brazil, Colombia, or Argentina? Because a payment needs local currency in a local bank account, and only an institution operating onshore can deliver it. The NDF lives in the offshore market. The supplier lives onshore. | | NDF (offshore) | Onshore payout | | --- | --- | --- | | What moves | A net dollar amount | The full amount in local currency | | Who receives local currency | Nobody | The recipient's bank account | | Purpose | Hedge or speculate on the rate | Pay a person or business | | Settles through | Dollar payment between counterparties | Pix, TED, ACH Colombia, Transfers 3.0 | | Rate reference | A fixing rate on maturity | A live quote at execution | The BIS also notes that some NDFs traded inside Brazil settle in reais. Those are onshore contracts, still settled as a difference, not a delivery of the full notional. For hedging versus paying, [live quote vs forward contract vs fixed rate](/resources/more/live-quote-vs-forward-contract-vs-fixed-rate) shows how a forward or NDF can sit next to a live quote: the hedge fixes your economics, the quote makes the payment. ## What about the Argentine peso? The peso has a long NDF history tied to its FX controls. In January 2002, after Argentina enacted its Public Emergency and Exchange Rate Reform Law, the New York Fed's Foreign Exchange Committee issued a statement on valuing and settling outstanding Argentine peso NDF transactions ([Federal Reserve Bank of New York](https://www.newyorkfed.org/medialibrary/microsites/fxc/files/2002/argentina.pdf)). Argentina's FX rules have changed many times since. Treat any specific statement about current access or fixings as something to confirm with a local advisor. The structural point holds either way: an offshore contract settles a difference, and paying in pesos still needs an onshore rail. [USDC to ARS routes in 2026](/resources/more/usdc-to-ars-routes-2026) compares the payout options. ## How does a USDC payout reach BRL, COP, or ARS? By converting and paying out onshore, through local liquidity and domestic rails. The stablecoin leg is global. The local currency leg never leaves the country. BlindPay's [payment methods reference](/docs/kb/payment-methods) lists the rails it uses in each of these countries: | Country | Currency | Payout rails | Typical timing | | --- | --- | --- | --- | | Brazil | BRL | Pix, PIX Safe, TED | Pix and PIX Safe in minutes, TED about 1 business day | | Colombia | COP | ACH Colombia | About 1 business day | | Argentina | ARS | Transfers 3.0 | In minutes | The flow is the same everywhere. You request a payout quote that locks the rate and fees for 5 minutes, execute it with the stablecoin, and the recipient's bank account receives local currency over the domestic rail ([payout quotes docs](/docs/payout-quotes)). **Illustrative example.** The same importer now pays a R$55,000 invoice over Pix with a receiver-side quote. | Line | Value | | --- | --- | | Amount the supplier must receive | R$55,000.00 | | Quoted rate (`blindpay_quotation`) | 5.4730 BRL per USDC | | USDC needed | 55,000 / 5.4730 = 10,049.33 USDC | | What arrives | R$55,000.00 in the supplier's account, over Pix | No fixing date, no net settlement, no offshore delivery problem. The reais are delivered in Brazil, by Brazilian rails. [Stablecoins plus local rails in Latin America](/resources/more/stablecoins-local-rails-latin-america) covers how each country's rail works. ## Does a non-deliverable currency make stablecoin quotes riskier? It makes them more volatile than dollar or euro quotes, not less reliable. Restricted currencies tend to have thinner offshore markets and wider swings, so quotes for BRL, COP, and ARS move more between requests than EUR quotes do. That is why the quote window matters. A binding quote fixes the amount that lands for its window, and an expired quote is rejected rather than repriced. [Onchain liquidity vs off-ramp liquidity](/resources/more/onchain-liquidity-vs-offramp-liquidity) explains why a deep USDC market doesn't guarantee a deep BRL payout, and [what spot settlement means](/resources/more/spot-fx-t-plus-2-vs-stablecoin-settlement) covers the timing side. ## What to do next Request one BRL payout quote and one COP payout quote on a development instance, and compare the rails and timing against the [payment methods reference](/docs/kb/payment-methods).