Receiving and sending stablecoins via Blitz Wallet

[internetional]

I've been using Blitz Wallet for over two years now, and I've always enjoyed following its development. However, just yesterday I realized that I completely missed a killer feature released back in April 2026. It is exactly what I've been wanting to see in Bitcoin wallets for a very long time.

In the mobile version of the wallet, tucked away at the bottom of the profile screen, there is an unremarkable button labeled "Accumulation addresses".


It allows you to generate deposit addresses for stablecoins across multiple networks (from Arbitrum to Tron). When stablecoins hit this address, they automatically convert into BTC on the Spark protocol. If I'm not mistaken, this conversion uses the Flashnet AMM. This means I don't have to touch stablecoins at all - I only ever see sats in my wallet.

There is also a solution for when you need to pay someone in stablecoins. It is integrated directly into the send form. If you paste a recipient address that doesn't belong to Spark, Lightning, or the Bitcoin base layer (an EVM address, for example), the wallet prompts you to select the destination network, the type of stablecoin, and the amount in sats you wish to send.


The conversion fees are relatively low. With the market rate at 64,768, Blitz offered me a conversion rate of 64,323. That amounts to a loss of roughly 0.7%.

Btw, the deposit fee for stablecoins is 1%.

While losing any amount is a pity, I still consider it a reasonable price to pay to avoid holding stablecoins yourself. Storing stablecoins carries the risk of them being flagged as "tainted," leaving you unable to spend them. Bitcoin doesn't have this risk. You can withdraw your BTC from the Spark protocol via the Lightning Network at any time. No matter how obsessed with AML the recipient is, they won't see the transaction history of your sats and will have no reason to flag them.

However, for now, I would limit myself to only receiving stablecoins through this wallet. Sending them is riskier. The recipient will most likely see the stablecoins as tokens coming straight out of an AMM. There is no guarantee that the liquidity for that AMM wasn't sourced from sanctioned or illicit addresses.

All in all, if you share my paranoia about asset freezing and blacklists, feel free to receive stablecoins with auto-conversion to BTC (this process looks safe). But when it comes to sending, stick to private transports like Lightning. Unfortunately, no privacy-preserving transports are offered for sending stablecoins yet.

[RGBTC]

Reading about your experience with accumulation addresses makes it seem quite practical; I need to clear out some of my disposable wallets. But does it also work for the native coins of supported networks, or just for stablecoins?
I noticed the "Free Contact Payments" feature; I hope you’ve used it and can explain it, because at first glance, it looks similar to how custodial wallets work (though I hope I’m wrong).

[internetional]

Reading about your experience with accumulation addresses makes it seem quite practical; I need to clear out some of my disposable wallets. But does it also work for the native coins of supported networks, or just for stablecoins?
I noticed the "Free Contact Payments" feature; I hope you’ve used it and can explain it, because at first glance, it looks similar to how custodial wallets work (though I hope I’m wrong).

These addresses are meant only for receiving two stablecoins: USDC (on the networks where it exists) and USDT (including USDT0 and Binance-Pegged USDT). I don't know what will happen if you send any other tokens of the supported networks to them. I suspect nothing good.

As for feeless transfers, this is a temporary phenomenon. In the future, the Spark protocol is expected to introduce a fee for internal transfers, but currently, there isn't one. That is why all transfers via Spark between Blitz, Tether Wallet, Cake Wallet, Glow, Layerz, and other similar wallets are carried out free of charge.

Whether storing Bitcoins in the Spark protocol can be called custodial is a debatable question. On one hand, the Blitz Wallet developer has a special utility for unilateral withdrawal (https://github.com/BlitzWallet/spark-recover), which is supposed to work even if the Spark infrastructure is down. On the other hand, as far as I know, under normal conditions, all transfers require the consent of this infrastructure's operators.

[internetional]

Btw, the deposit fee for stablecoins is 1%.

It turned out that the 1% is an extra fee charged by Blitz itself. On top of that, there are conversion costs on the Flashnet DEX, and they are just massive. The liquidity pools there must be completely empty. Twice I gave my Blitz-generated addresses to stablecoin senders. Both times I received tiny amounts (under $5). The first time, the total conversion losses reached 18%, and the second time, it was a whopping 60%.

Don't use these addresses to receive stablecoin payments!

[bitmover]

The conversion fees are relatively low. With the market rate at 64,768, Blitz offered me a conversion rate of 64,323. That amounts to a loss of roughly 0.7%.

Btw, the deposit fee for stablecoins is 1%.

You are paying for convenience. For small amounts it is ok.

But I personally think this is a high fee.

If you transfer large amounts, you will see that this is significant cost.

You can easily reduce such costs by using other exchanges or a DEX.