Lithuania is an increasingly active country in the EU when it comes to fintech and crypto regulations. It holds an open banking environment and a constantly growing number of crypto asset service providers (VASPs) registering under EU frameworks. This makes it highly beneficial for enterprises and freelancers in the region where they can integrate stablecoins in their monetary flows. Using USDT for both payouts and collections, paired with local banking settlements can offer this landscape a low cost, high value, cross border transfer setup while still anchoring funds in Euros for domestic usage. In this article, we’ll explore how to accept USDT payments, make payouts and convert to EUR for making USDT up and running for your business in Lithuania. We’ll also explore the practical tips for quick implantation, so keep reading to find out more!

Regulatory and banking system in Lithuania 

To understand what can be built in Lithuania's financial system, it’s important to break down the existing system and services in the region; 

1. The bank of Lithuania regulates crypto asset providers in the country. It has announced compliance compulsion under EU Markets in Crypto-Assets Regulations (MiCA) under which all operators must comply. 

2. Lithuanian law defines crypto assets as virtual currency, a digital representation of value and not a legal tender. 

3. Though Lithuanian banks are gradually becoming more crypto friendly, many still require a clear source of funds and conversion partners to integrate with when dealing with crypto linked flows. 

Key Insight - Businesses must collaborate with licensed crypto gateways and exchanges and ensure fiat settlements into banks like SEB or Swedbank. It’s important to ensure that these integrations are compliant and well documented. 

Receiving USDT payments in Lithuania 

Here’s how businesses in Lithuania can integrate USDT reception and get started with the USDT workflow; 

1. Setup a USDT capable Wallet/partner up with a crypto payment gateway which supports USDT or major networks and also offers business tools like invoicing, monitoring and conversion flows. You must confirm compliance with Lithuanian/EU rules for crypto services. 

2. Generate receiving details i.e. present your clients and customers with USDT payment instructions like denominated amount, wallet address or QR code, network selection and memo if required. 

3. Once the details are extended, the payer initiates USDT transaction. The gateway monitors the blockchain for confirmation. 

4. When your gateway or system receives the required confirmation, the gateway marks the invoice as paid and the proceeds to service or goods fulfilment, 

5. It’s time to decide if you/your business wants to hold the USDT for USD value exposure or convert it to EUR via local exchange or on/off ramp partners for depositing into your bank in Lithuania. 

6. After the conversion to EUR, the euros are transferred via SEPA or local rails into your registered Lithuanian bank account (SEB Bankas or Swedbank). Your funds are now ready to be used for paying lenders, payroll, suppliers or other domestic usage. 

It is advised to track the wallet address, transaction hash, amount of USDT, timestamp and conversion rate along with deposit reference and invoice mapping for accounting and audit. Mark off this checklist and you are ready to roll for the next batch of transfers. 

Paying out USDT in Lithuania 

If your business in Lithuania needs to pay vendors, remote workers or connector through USDT, a combination of bank conversion and USDT payments would make the perfect case for you, here’s how to execute it;

1. Convert Euros to USDT - Use a regulated exchange or gateway to convert your domestic euros to USDT.

2. Send USDT to recipient's wallet - provide vendor or contractor's wallet details and execute the transfer on the chosen network. 

3. Conversion to local currency - It’s up to the recipient if they wish to hold the received USDT or convert the same via a partner. 

4. Document and record payment - it’s important to maintain records related to the transaction. Also include fiat conversion if taken place. 

The benefits of this setup are faster payouts, lower cost for cross border stems and ultimately efficient transfers compared to traditional banking wires. 

Converting USDT to EUR and bank settlements

Important things to consider while converting and settling include;

1. Choose an exchange or off ramp partner which directly supports the USDT to EUR conversion rails and accommodates settlement into Lithuanian bank accounts. 

2. Ensure your bank congregation - if it accommodates incoming deposit source from from crypto conversion partner and accepts it. 

3. USDT transfer is often near instant and takes minutes while conversion and bank deposit takes hours depending on the exchange partner. 

4. Under Lithuanian finance laws, crypto assets are virtual currencies and not legal tender, it’s crucial to keep proceeds of conversion and the value in EUR. 

5. Consider associated risk i.e. stablecoin issuer risk, bank policy risk and regulatory enforcement mandates. 

Role of SEB Bankas and Swedbank

1. SEB Bankas - SEB Bankas is a major Lithuanian bank and is a subsidiary of SEB Group. It can serve as the euro-fiat settlement bank once the funds have been converted from USDT.

2. Swedbank - Swedbank is a leading Lithuanian bank which is recognized as a crypto friendly bank in the region. 

In recent scenarios, these banks don’t directly handle USDT wallets or custody but they handle EUR settlements after conversion from USDT via a partner. 

Conclusion 

For Lithuanian based businesses, freelancers and experts, integrating USDT payouts and collection flows clubbed with bank settlements like SEB Bankas or Swedbank, offers a highly valuable model. While banks are still evolving with stablecoin and crypto workflows from end to end, businesses can adopt a model where payouts and collections happen via crypto wallets conversion via exchange partners and settlement via native banks which are well equipped in cross border flows. A model like this ensures faster settlements, complaint systems, lower costs, wider reach and local banking ecosystem providing businesses with benefits to look forward to. If you wish to start USDT payouts and collections for your business in Lithuania, talk to experts at TransFi today and integrate stablecoin rails seamlessly, initiate EUR settlements and benefit from local banking interconnectivity. 

To know more, also read: USDT Payout and Collection in Brazil – via PIX and Itaú Unibanco

Frequently asked questions (FAQs)

1. Can businesses in Lithuania receive USDT payments?

Yes, to receive USDT payments businesses can use crypto payment gateway or wallet for USDT followed by conversion to EUR and deposit into a Lithuanian bank account. 

2. Is USDT considered to be a legal tender in Lithuania?

No, USDT and other crypto assets are identified as virtual assets in the country and not as legal tender. 

3. What does the settlement time look like for USDT transfers?

On chain USDT transfer is fast (within minutes) but conversion and settlement into bank accounts may require some hours. 

4. What are the fees for collecting USDT in Portugal?

The fee structure depends on the blockchain network charges, service provider charges, conversion fees and bank deposit fees. While the blockchain network fee is minimal, it's important to analyze all aspects of the cost breakdown. Reach out to TransFi support  for further assistance. 

5. Are SEB Bankas or Swedbank providing native USDT business wallets/accounts?

No, these banks don’t directly handle USDT wallets or custody but they handle EUR settlements after conversion from USDT via a partner.