Circle and Finastra Partner to Integrate USDC Stablecoin Settlement into Global Banking Infrastructure
Circle, in collaboration with financial software giant Finastra, has announced a groundbreaking partnership aimed at modernizing cross-border payments. The integration of USDC stablecoin settlement into Finastra’s Global PAYplus (GPP) platform is set to revolutionize the way banks process daily cross-border transactions, totaling over $5 trillion.
The partnership will enable banks using GPP to settle transactions in USDC, a regulated stablecoin pegged to the U.S. dollar. This move will provide banks with a more efficient and cost-effective way to clear and settle transactions, reducing reliance on correspondent banking chains that are known for their high costs and delays.
By offering a blockchain-based settlement layer within the existing payments ecosystem, the collaboration seeks to streamline the cross-border payment process while ensuring compliance and foreign exchange processes are followed. This innovative approach will allow banks to test digital settlement options without the need to build their own systems.
Jeremy Allaire, co-founder and CEO of Circle, believes that the partnership with Finastra will open up new opportunities for USDC adoption. With USDC supply growing significantly, embedding stablecoins into traditional finance is a key focus for Circle. The partnership with Finastra’s global network of clients will serve as a powerful channel to expand the use of USDC in the banking sector.
Regulators in the U.S., Europe, and Asia are increasingly focusing on stablecoins and their role in payment innovation. By using a regulated stablecoin like USDC for settlement within widely used platforms, banks can experiment with blockchain-based payments in a safe and compliant manner.
The cross-border payments market, valued at over $150 trillion annually, has been under pressure to improve speed and transparency. Initiatives like SWIFT gpi and central bank digital currency pilots have emerged to address inefficiencies, but stablecoins are now being seen as a complementary solution.
By integrating USDC settlement directly into Finastra’s platform, Circle is positioning USDC as an institutional-grade tool for cross-border transactions. This model could enable banks to clear transactions round the clock and reduce reliance on costly intermediaries.
Collaborations like the one between Finastra and Circle are paving the way for a shift towards faster and more efficient payment systems that blend fiat rails with blockchain technology. As the landscape for cross-border flows continues to evolve, partnerships like these are driving innovation and reshaping the future of global payments.