A collaboration between Finastra and Circle has enabled USDC stablecoin to be integrated by banks into cross-border payment flows
Clients of stablecoin issuer Circle Internet Group (Circle) can now benefit from a collaboration with Finastra to enable USDC settlement to banks, resulting in faster stablecoin cross-border payments.
Global financial services software Finastra’s Global PAYplus (GPP) solution will be leveraged in the collaboration.
Leveraging modern banking technology
GPP is a modern solution that facilitates configurations for financial institutions.
The solution’s modular set up allows institutions to extend beyond immediate payments to other types of payments such as wires, mass payments and SWIFT.
It also provides support such as payment workflows and business rules to enable flexibility.
This solution is positioned as one of the most configurable on the market, and currently processes over US$5trn in cross-border transactions daily.
Finastra’s GPP customers will be connected to Circle technology to enable near-instant settlement in USDC.
This won’t be affected by payment instructions in fiat currency. Chris Walters, CEO of Finastra, says: “By connecting Finastra’s payment hub to Circle’s stablecoin infrastructure, we can help our clients access innovative settlement options.
“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.”
The collaboration will see increased speed and reduced cost for customers looking to make international payments.
Through the use of GPP, the collaboration offers banks more range in sending payments, easing the burden on traditional banking correspondent chains.
Jeremy Allaire, Co-founder, Chairman and CEO of Circle, says: “Finastra’s reach and expertise in powering the payments infrastructure for leading banks worldwide makes 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.”
The partnership aims to reduce settlement times while remaining FX compliant.
Cross-company efforts
Elsewhere, companies in the fintech space are innovating cross-border payments to reduce friction.
payabl. is combining its industry expertise with technological innovation to navigate the cross-border systems structure.
Worldpay has previously stated that it is investing more in technological innovation as a priority, including enhancing its global payments processing network.
ACI Worldwide has also stated it will be investing in tech advancements looking ahead, in preparation for further developments in the fintech space to increase efficiency in cross-border payments
How is stablecoin expanding globally?
The GENIUS Act is poised to bring regulatory clarity to the US stablecoin market, potentially encouraging major financial institutions to enter the space.
The act mandates full asset backing and monthly reserve disclosures for stablecoins, aiming to enhance transparency and stability in the burgeoning digital finance sector.
Global payments provider BVNK recently announced it partnered with Bitso Business to streamline international transfers using stablecoin for companies in Latin America and Europe.
The partnership leverages BVNK’s stablecoin-powered platform and Bitso’s local payment infrastructure, enabling faster, more efficient and accessible cross-border transactions for businesses in these regions.
The expansion of stablecoin across the globe is an ever-evolving process among companies in the fintech space.
Source: https://fintechmagazine.com/
