Cross-border payments may soon move faster as banks gain
access to stablecoin settlement through a new deal between Finastra and Circle.
The collaboration will connect USDC, Circle’s dollar-pegged digital token, to
Finastra’s Global PAYplus platform.
Finastra Opens Its Network to USDC
Finastra said the integration will allow banks using its
payments hub to settle transactions in USDC even when instructions on both
sides remain in fiat currency. GPP currently processes more than $5 trillion
daily in cross-border payments.
The move offers institutions a way to bypass some of the
delays and costs tied to correspondent banking chains while maintaining
compliance and foreign exchange processes.
“This collaboration is about giving banks the tools
they need to innovate in cross-border payments without having to build a
standalone payment processing infrastructure,” commented Chris Walters,
CEO of Finastra. “By connecting Finastra’s payment hub to Circle‘s
stablecoin infrastructure, we can help our clients access innovative settlement
options.”
USDC is a fully reserved stablecoin regulated to maintain
its peg to the dollar. By embedding it into GPP, Finastra aims to give banks
the option to test blockchain-enabled settlement within traditional banking
rails.
Read more: Binance Now Accepts Circle’s Yield-Bearing USYC Token for Institutional Collateral
The deal highlights how stablecoins are being positioned not
as a replacement but as a complement to established financial systems, with
potential to reshape how institutions handle large-scale international
payments.
Jeremy Allaire, Co-founder, Chairman and CEO of Circle, said
the tie-up builds on both firms’ strengths: “Finastra’s reach and expertise in powering the
payments infrastructure for leading banks worldwide make them a natural choice
to further expand USDC settlement in cross-border flows. Together, we’re
enabling financial institutions to test and launch innovative payment models
that combine blockchain technology with the scale and trust of the existing
banking system.”
Seeking a Banking Charter
Circle recently filed an application with the Office of the
Comptroller of the Currency seeking approval to establish a national trust bank in the United States to manage its USDC stablecoin reserves. The
move marked a step toward placing the company’s stablecoin operations under
federal oversight.
If approved, the proposed First National Digital Currency
Bank would function as a federally regulated trust institution. Its primary
role would be to oversee and safeguard the USDC Reserve on behalf of Circle’s
U.S. issuer, ensuring compliance with regulatory standards and reinforcing
confidence in the stablecoin’s backing.
The application also signals an effort to strengthen the
infrastructure behind the issuance and circulation of USDC. A successful
approval is also expected to bring additional regulatory clarity while embedding the
stablecoin more firmly within the U.S. financial system.
This article was written by Jared Kirui at www.financemagnates.com.