Crypto for Flood Relief: Sandeep Nailwal Launches Stablecoin Campaign for Nepal

Crypto for Flood Relief is emerging as a new way for people around the world to support disaster-hit communities, with Polygon Labs co-founder Sandeep Nailwal launching a stablecoin-based donation campaign for flood victims in Nepal.

The initiative, launched on September 4, allows international donors to contribute cryptocurrency through NepalRelief.org. Instead of sending crypto directly into Nepal, the system converts the digital assets into conventional currency before the funds reach the Government of Nepal’s Prime Minister Disaster Relief Fund.

The campaign brings together Polygon Labs, Cross River Bank, Coinme and Engage Nepal to create a regulated pathway for crypto donations to reach Nepal’s official relief fund.

Sandeep Nailwal Launches Nepal Relief Campaign

Sandeep Nailwal, co-founder of Polygon Labs, announced the campaign as a response to the devastating flooding in Nepal.

The campaign is designed to allow people outside Nepal to contribute digitally while ensuring that the eventual donation reaches the country’s official disaster-relief system in local currency.

Nailwal said stablecoins are particularly useful during emergencies because they can move money quickly across borders without the price volatility associated with cryptocurrencies such as Bitcoin and Ethereum.

How the Stablecoin Donation System Works

The campaign does not simply send cryptocurrency to a Nepalese government wallet.

Instead, donations are collected through NepalRelief.org and processed through a multi-step system. Polygon’s Open Money Stack provides infrastructure for routing, bridging and converting digital assets, while Coinme and Cross River Bank support the conversion into traditional financial assets.

The crypto is converted into dollars through the US financial system before being transferred through conventional banking channels to Nepal.

This structure is particularly important because cryptocurrency transactions remain prohibited in Nepal. According to the Kathmandu Post, no cryptocurrency enters Nepal through the arrangement; the conversion takes place in the United States before the funds are sent to Nepal through regulated banking channels.

Cross River Bank Provides the Banking Bridge

New Jersey-based Cross River Bank is playing a central role in the initiative by providing the regulated financial infrastructure connecting crypto donations with traditional banking.

The bank’s involvement allows the campaign to operate without requiring Nepalese banks to directly handle cryptocurrency.

After the digital assets are converted into dollars in the United States, the money can be transferred to Nepal through the established banking system and ultimately reach the government’s relief fund.

This effectively creates an international “off-ramp” for crypto donations, allowing digital assets to become usable local currency for humanitarian assistance.

More Than $170,000 Raised

The campaign gained traction within its first few days.

According to NepalRelief.org figures reported on September 6, the campaign had collected approximately $173,202, equivalent to around NPR 26.23 million, by Sunday morning Nepal time.

The amount highlights the potential of digital assets to mobilize international donations quickly following a major disaster.

Blockchain for Impact also committed an initial $100,000 to the campaign, while other cryptocurrency-industry organizations have announced separate contributions toward Nepal’s relief efforts.

Why Stablecoins Are Being Used

Stablecoins are cryptocurrencies designed to maintain a relatively stable value by being linked to an asset such as the US dollar.

For disaster relief, that stability can be particularly important. Traditional cryptocurrencies can experience major price movements between the time a donation is made and the time it is converted into local currency.

Using dollar-backed stablecoins can reduce that volatility and make the value of the donation more predictable during the transfer process.

Nailwal has argued that this makes stablecoins especially suitable when emergency funds need to move quickly.

Nepal’s Crypto Restrictions Create a Unique Challenge

One of the most unusual aspects of the campaign is that it is facilitating crypto donations for a country where cryptocurrency transactions are prohibited.

The organizers therefore developed a structure in which cryptocurrency remains outside Nepal.

Cross River Bank converts the digital assets into dollars within the US-regulated financial system. The proceeds are then sent to Nepal using conventional banking channels, including SWIFT transfers.

The arrangement was reportedly developed in consultation with Nepalese authorities, with the government providing a no-objection for the relief mechanism.

Polygon’s Open Money Stack Powers the Infrastructure

Polygon’s Open Money Stack is another important component of the campaign.

The technology helps handle the movement of digital assets across networks and facilitates their conversion into USDC, a dollar-pegged stablecoin.

The system allows donors to contribute from different blockchain networks while creating a standardized path toward traditional currency settlement.

This demonstrates one of the broader applications blockchain companies are pursuing beyond cryptocurrency trading: using blockchain infrastructure for international payments and humanitarian transfers.

Engage Nepal Helps Manage the Donations

Engage Nepal, a US-based nonprofit led by former US Ambassador to Nepal Scott DeLisi, is involved in the collection and accounting side of the campaign.

The organization helps connect the publicly visible crypto-donation infrastructure with the traditional financial system used to deliver the funds to Nepal.

This additional organizational layer is intended to provide accountability while ensuring that the campaign can operate within the relevant US and Nepalese financial frameworks.

Nailwal Has Previous Experience With Crypto Relief

The Nepal initiative is not Nailwal’s first major humanitarian effort involving cryptocurrency.

During India’s COVID-19 crisis, he was involved in the India COVID Crypto Relief Fund, which became one of the largest crypto-based humanitarian fundraising efforts of its time.

That experience appears relevant to the new Nepal campaign, particularly in using cryptocurrency infrastructure to move international donations toward people affected by a disaster.

The Nepal system, however, has been structured specifically around converting the donated assets into traditional currency before the money enters the country.

Crypto Industry Responds to Nepal Disaster

Nailwal’s campaign is part of a wider response from the global cryptocurrency industry.

Ripple announced a $300,000 contribution for humanitarian relief, while the Solana community also raised funds for the response. Blockchain for Impact committed $100,000 toward the Nepal campaign.

The involvement of several blockchain organizations indicates growing interest in using digital assets for international humanitarian assistance, particularly where conventional cross-border transfers may take longer.

Why the Campaign Matters

The Crypto for Flood Relief campaign illustrates how blockchain technology can potentially connect global donors with disaster-response systems even when cryptocurrency itself cannot legally enter the recipient country.

Rather than treating crypto as the final form of aid, the Nepal initiative uses it as the starting point for a cross-border financial transfer.

Donors contribute digitally, the assets are converted through a US-based financial system, and the resulting funds are transferred to Nepal as conventional currency.

That approach could become a useful model for other humanitarian campaigns where crypto regulations, banking restrictions or cross-border payment challenges make direct transfers difficult.

What Happens Next?

The campaign is expected to continue collecting donations for Nepal’s disaster response and reconstruction efforts.

Its progress will likely be closely watched by both the cryptocurrency industry and humanitarian organizations because it offers a real-world test of whether stablecoins can function as an efficient bridge between global digital donors and traditional relief infrastructure.

For Sandeep Nailwal and Polygon Labs, the initiative also highlights a broader vision of blockchain technology as financial infrastructure rather than simply a platform for digital-asset speculation.

Key Takeaway

The Crypto for Flood Relief campaign launched by Sandeep Nailwal provides a new channel for international support following Nepal’s devastating floods.

Through NepalRelief.org, donors can contribute stablecoins that are processed through Polygon’s infrastructure and converted into conventional currency before being transferred to Nepal’s Prime Minister Disaster Relief Fund. Cross River Bank provides an important regulated financial bridge, while Coinme, Polygon Labs and Engage Nepal support the wider system.

With more than $173,000 reportedly raised within the campaign’s first few days, the initiative is demonstrating how stablecoins could play a growing role in rapid international disaster relief.

FAQs

1. What is the Crypto for Flood Relief campaign?

It is a stablecoin-based fundraising campaign launched by Polygon co-founder Sandeep Nailwal to support flood relief in Nepal and contribute to the government’s Prime Minister Disaster Relief Fund.

2. Who launched the Nepal crypto relief campaign?

Sandeep Nailwal, co-founder of Polygon Labs, launched the campaign on September 4, 2026.

3. How can people donate?

International donors can contribute through NepalRelief.org using supported cryptocurrencies and stablecoins. The funds are then converted into conventional currency before reaching Nepal’s relief fund.

4. Does cryptocurrency enter Nepal?

No. The current arrangement converts the cryptocurrency into dollars through the US financial system before the funds are transferred to Nepal through conventional banking channels.

5. What role does Cross River Bank play?

Cross River Bank provides the regulated financial infrastructure needed to convert the crypto donations into dollars and facilitate their transfer toward Nepal.

6. What is Polygon’s Open Money Stack?

Polygon’s Open Money Stack provides infrastructure for routing, bridging and converting digital assets used in the campaign.

7. How much money has the campaign raised?

NepalRelief.org had reported approximately $173,202 in donations by September 6, according to reports citing the campaign’s figures.

8. Why are stablecoins being used?

Stablecoins are designed to maintain a relatively stable value, making them more predictable for emergency donations than highly volatile cryptocurrencies.

9. Is cryptocurrency legal in Nepal?

Cryptocurrency transactions are prohibited in Nepal. That is why the campaign converts the donated assets outside Nepal before transferring conventional currency into the country.

10. Where do the donations ultimately go?

The converted funds are intended to reach the Government of Nepal’s Prime Minister Disaster Relief Fund through regulated financial channels.