Digital Transactions Authoritative, insightful and timely information for payments professionals
The stablecoin platform Circle Internet Group Inc. late Monday unveiled a payments network aimed at linking financial institutions and digital wallets for cross-border payments. The network, which will enable real-time settlement using what Circle calls regulated stablecoins, represents a major new thrust for the 11-year-old, New York City-based company into supporting global payments via a network of banks, payment service providers, and virtual-asset platforms.
The new venture, Circle Payments Network, will emerge “in a limited capacity” in May, says Circle, which is soliciting “licensed financial institutions interested in becoming network participants.”
Some observers see the move by Circle to serve as a global stablecoin-based payments network as ultimately competitive with card systems such as Visa or Mastercard. Others credit Circle with big ambitions but say its rivalry is really with other companies with a foundation in digital currency, such as Ripple Labs Inc., which supports the network for the company’s XRP token and recently introduced a stablecoin, RLUSD.
For its part, Circle said in a release the new network “marks the next chapter in Circle’s evolution, extending beyond trusted stablecoins and developer platforms to power a globally connected payments network.” The company lists some 28 “design partners” for the new venture, including processors like Nuvei Corp. and dLocal Ltd. “Circle Payments Network is a foundational layer for the always-on economy — enabling trusted institutions to move value across borders, instantly,” said Nikhil Chandhok, Circle’s chief product and technology officer, in a statement.
Circle did not respond to requests for comment from Digital Transactions News.
Such initiatives will benefit from a friendlier outlook in Washington on stablecoins, which are digital currencies pegged to a national currency such as the dollar. Observers point to stablecoin legislation now in progress in the House and Senate. Now, Circle Payments Network “marks the next chapter in Circle’s evolution, extending beyond trusted stablecoins and developer platforms to power a globally connected payments network,” notes Aaron McPherson, principal at AFM Consulting and a close observer of digital currencies.
Indeed, moves like the one by Circle into international payments based on stablecoins will not end soon, McPherson predicts. “I expect to see a lot more activity in this area,” he says.
Circle’s stablecoin, USDC, is the second largest by market capitalization, and is ranked seventh by Coinmarketcap among all digital currencies at $61 billion. Tether, the largest stablecoin, ranks second overall at $144.8 billion.
