Backpack, a regulated centralized cryptocurrency exchange launched in 2023, has recently introduced a game-changing fiat withdrawal feature, allowing users to seamlessly convert USDC into USD and wire it directly to their bank accounts—complete with zero platform fees and fast processing times. This update marks a major milestone in bridging the gap between digital assets and traditional finance.
Backed by Solana ecosystem expertise and led by former FTX engineers, Backpack has quickly gained traction thanks to its compliance focus, robust funding, and generous user incentives like recurring airdrops. With operations now spanning multiple jurisdictions—including Dubai’s regulated VASP framework and 12 U.S. states—Backpack is positioning itself as a trustworthy gateway for crypto traders seeking security and real-world utility.
In this comprehensive guide, we’ll explore Backpack’s background, its new fiat outflow functionality, step-by-step withdrawal instructions, trading fee structure, security measures, and how to participate in its ongoing rewards program—all while highlighting key benefits for global users.
The Rise of Backpack: From FTX Fallout to Regulatory Compliance
Founder Armani Ferrante’s Web3 Journey
Backpack was founded by Armani Ferrante, a UC Berkeley alumnus and former Apple iOS developer who transitioned into blockchain development after being inspired by Ethereum. His journey took a pivotal turn when he briefly joined Alameda Research in early 2018, where he interacted with key figures from FTX. However, he left after just three months to focus on decentralized technologies.
By 2020, as FTX began investing in Solana, Armani shifted his focus to building infrastructure for the growing ecosystem. He founded Coral, a developer platform tailored for Web3 engineers, which later became the foundation for Backpack Wallet and its innovative xNFT technology.
Despite losing nearly 90% of its operational capital following the FTX collapse just six weeks after securing a $20 million investment from FTX Ventures, Jump Crypto, and Multicoin Capital, the team refused to shut down. Instead, they pivoted creatively—launching the Mad Lads NFT collection in April 2023.
The NFT drop, priced at 6.9 SOL (approx. $150), required purchases via Backpack Wallet only. This strategic move not only raised millions in funding but also generated massive visibility for the brand, laying the groundwork for the official launch of Backpack Exchange in October 2023.
👉 Discover how leading exchanges handle fiat on/off ramps securely.
Backpack Exchange: A Regulated CEX with Real-World Utility
Unlike common misconceptions, Backpack is not a decentralized or on-chain exchange—it operates as a centralized exchange (CEX) similar to Binance or Bybit. What sets it apart are its strong compliance credentials and user-centric features.
Key Highlights
- ✅ Licensed under Dubai’s Virtual Asset Regulatory Authority (VARA) as a VASP
- ✅ Legally operating in 12 U.S. states
- ✅ Raised $17 million in Series A funding (Feb 2024), achieving a $120 million valuation
- ✅ Distributed over $50 million in airdrop rewards across four campaigns (as of April 2024)
The platform supports 47 spot trading pairs and 34 perpetual contract markets, including major assets like BTC, ETH, USDT, JUP, TRUMP, WIF-PERP, and ARB-PERP. While initially focused on Solana-based tokens, Backpack now offers diverse exposure across mainstream and meme coins.
Its transparent team includes former FTX legal counsel Can Sun and Claire Zhang—professionals committed to learning from past industry failures and delivering a safer, more accountable trading environment.
Backpack’s New Fiat Withdrawal Feature: Instant USD Wire Transfers
One of the most anticipated updates in 2025 is the launch of fiat withdrawal support, enabling users to cash out their crypto holdings directly to bank accounts without third-party intermediaries.
This feature allows seamless conversion of USDC stablecoins into USD, with funds transferred via SWIFT wire transfer—offering speed, transparency, and full regulatory compliance.
Why This Matters
For traders in regions like Taiwan, where banking integration has historically been challenging, this development simplifies liquidity management and reduces reliance on unregulated peer-to-peer channels.
Key Benefits
- 💸 Zero platform fees – No charge for initiating the withdrawal
- ⚡ Fast settlement – Typically arrives within 2–3 hours, often same-day
- 🌍 No forex loss – Direct USD conversion without unfavorable exchange rates
- 🔐 Compliant process – Users must select remittance purpose code “268” (Sale of Overseas Virtual Assets) during bank reporting
Supported Banks
Currently supports institutions such as LINE Bank Taiwan Limited, provided users have an active USD foreign currency account.
Step-by-Step Withdrawal Guide
Follow these simple steps to withdraw USDC as USD via wire transfer:
- Log in to your Backpack account → Go to “Withdraw” → Select “Fiat”
- Enter the amount in USDC you wish to convert
- Choose or add a beneficiary bank (e.g., LINE Bank)
Provide required details:
- SWIFT/BIC code
- Bank name
- Account number
- Review all information carefully and click “Continue”
- Confirm transaction; funds typically arrive within hours
💡 Tip: Ensure your bank account is set up for USD receipts. For LINE Bank users, refer to official resources to enable foreign currency transactions.
👉 Learn how top traders manage cross-border crypto-to-fiat conversions efficiently.
Participate in Backpack Points Program: Earn Rewards for Activity
Launched on March 21, 2025, the Backpack Points Program rewards active users with积分 (points) that may later be redeemable for a potential native token.
How It Works
- Points distributed every Friday at 02:00 UTC based on activity from the previous week (cut-off: Thursday 00:00 UTC)
- Dynamic scoring system—formula undisclosed but favors consistent engagement
- Designed to incentivize growth-driving behaviors: trading, lending, staking
Tiered Ranking System
Users are ranked across six levels based on total points:
Bronze → Silver → Gold → Platinum → Diamond → Challenger
Higher tiers reflect greater platform involvement and could unlock future benefits.
Participation Steps
- Sign up at Backpack Exchange
- Complete KYC verification
- Use any service: spot trading, futures, deposits, etc.
No minimum threshold—every action counts toward your weekly score.
How to Register on Backpack: Quick & Secure Account Setup
Creating an account takes less than five minutes:
- Visit the official Backpack website
- Enter email and password → Verify via confirmation link
Proceed to KYC:
- Select individual account type
- Fill in personal details (name, address)
- Upload government ID (passport or national ID card)
- Wait for approval (typically within 12–24 hours)
Once verified, you can begin trading immediately.
🔒 Pro Tip: Enable two-factor authentication (2FA) right after registration to protect against phishing attacks. Always access the site through bookmarked URLs—not search engine results.
Understanding Backpack’s Fee Structure
Trading Fees
Default rates are competitive:
- Maker: 0.085%
- Taker: 0.095%
Fees decrease as 30-day trading volume increases:
| Level | 30-Day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|---|
| 1 | $0 | 0.0850% | 0.095% |
| 4 | >$10M | 0.0650% | 0.080% |
| 6 | >$50M | 0.0400% | 0.070% |
| VIP 4 | >$800M | 0.0000% | 0.040% |
High-volume traders enjoy near-zero maker fees at the top tier.
Deposit & Withdrawal Fees
- Deposits: Free for all cryptocurrencies
- Withdrawals: Low flat fees (e.g., $1 for USDC/USDT, 0.01 SOL)
Check official updates regularly for changes.
Is Backpack Safe? Addressing Security Concerns
Backpack is not a scam—it is a licensed and transparent exchange. However, phishing sites mimicking its interface do exist.
To stay safe:
- Only use the official domain
- Bookmark the site after first login
- Always enable Google Authenticator-based 2FA
- Never share login credentials
Every withdrawal requires secondary authentication, adding an extra layer of protection.
Frequently Asked Questions (FAQ)
Q: What is Backpack Exchange?
A: Backpack is a regulated centralized crypto exchange based on Solana infrastructure, offering spot, futures, and wallet services with compliance in Dubai and parts of the U.S.
Q: How do I deposit funds?
A: Currently supports USDC and USDT deposits via the Solana network only.
Q: Does Backpack have a mobile app?
A: Yes—downloadable from the official website for both iOS and Android devices.
Q: Can I withdraw fiat directly?
A: Yes! As of 2025, users can convert USDC to USD and wire it to supported banks like LINE Bank with no platform fee.
Q: How fast are fiat withdrawals processed?
A: Typically completed within 2–3 hours, depending on bank processing times.
Q: Where can I get customer support?
A: Reach out via email ([email protected]), Telegram (@BackpackExchangeSupportChinese), or Discord (discord.com/invite/backpack).
👉 See how leading platforms streamline secure fiat withdrawals today.