A new US-based off-ramp system now allows crypto-funded humanitarian aid to reach Nepal even though the country prohibits cryptocurrency trading and use. The arrangement converts digital assets abroad before sending dollars into Nepal through regulated banks.
Under the system, donors worldwide can contribute digital currencies without sending crypto into Nepal. US financial institutions convert the assets into dollars before transferring the funds to the government’s disaster relief account.
By Monday, USD 500 from crypto-to-fiat donations had reached the government fund, according to Finance Minister Swarnim Wagle. Meanwhile, NepalRelief.org had collected USD 174,831 from donors.
NepalRelief.org accepts cryptocurrencies across networks including Ethereum, Polygon and Solana. Polygon, Cross River Bank and Engage Nepal developed the channel following the deadly Bhotekoshi river floods. Polygon’s Open Money Stack and Coinme support the technical process. The system collects digital assets, bridges them, and converts them into USDC before the banking stage begins.
Engage Nepal receives the contributions through a publicly disclosed wallet and conducts an audit. Cross River Bank then converts the assets into dollars and sends the funds through SWIFT.
This structure keeps cryptocurrency outside Nepal’s financial system. Nepali banks receive conventional currency rather than digital assets, allowing the donations to enter through the existing banking network.
The project began after crypto companies and communities abroad sought a legal way to support people affected by the Bhotekoshi floods. Cross River Bank executive Pravesh Rijal and Polygon Foundation founder Sandeep Nailwal discussed the proposal on August 27. They focused on converting crypto in the United States before sending money to Nepal.
After Polygon, Cross River Bank, and Engage Nepal agreed on the structure, they approached Nepal’s government through Finance Minister Wagle. The government then gave its no-objection to the arrangement.
Cross River Bank assigned a 25-member team to complete the legal and technical work. According to Rijal, the team launched NepalRelief.org within 24 hours. Could the same off-ramp structure provide a route for crypto-funded humanitarian aid in other countries that restrict digital currencies?
Other blockchain organizations have also announced assistance following the floods. Ripple said on August 29 that it would provide USD 300,000 for the emergency response. World Central Kitchen and Mercy Corps are using those funds for food, drinking water, and emergency sanitation supplies in affected communities.
The Solana Foundation and NFT marketplace Mallow raised another USD 166,946 in USDC. They generated the funds by auctioning nine advertising slots on Solana’s official X account. Solana said it would route the proceeds to Nepal’s government relief fund through Engage Nepal. Blockchain for Impact has also pledged USD 100,000 for Nepal.
The arrangement differs from previous crypto relief drives that faced legal barriers inside Nepal. This time, organizers keep the digital assets abroad and transfer only regulated fiat currency into the country.
Nepal still prohibits cryptocurrency use and trading. The government has nevertheless allowed this overseas conversion structure while keeping digital assets outside Nepal’s domestic financial system.