USDC Stablecoin Cross Border Payments Projects Gathering Pace
(2 August 2022 – United States) Banking Circle recently announced it is adding USD Coins (USDC) to its payment network, making it the latest cross-border payment enterprise to launch projects around the USD-backed stablecoin.
Issued by global fintech Circle, USDC is currently the second largest stablecoin in circulation, with a market cap of US$55 billion, behind Tether (US$66 billion). Similar to other USD stablecoins, its value is pegged to the US dollar, but its level of regulation, transparency and lower risk nature of its fiat-currency holdings have made it an increasingly appealing option for cross-border payments projects.
Cross-border payments companies are seeking to tap into the benefits USDC offers, one of which is instant settlement. Through their USDC adoption, Checkout.com and Worldpay want to enable merchants to settle payments instantly on a 24/7 basis, as opposed to waiting for funds to process through legacy systems often batched overnight or not available outside of business hours.
East & Partners and PCM’s upcoming “Opportunities and Upsides in the Digital Payments Revolution” report delivers the world’s first guide to developing future strategies for corporate, B2B and consumer payments based on direct interviews with 900 C-suite professionals across nine key markets in Europe, North America, the Middle East and Asia. The analysis captures detailed insights into:
- Compliance challenges faced by those accepting digital currencies
- The current user experience when using digital currencies and how to improve it
- Key areas for early adoption of blockchain/digital currencies and risk factors
- Current bank offerings in digital currencies/blockchain and where these need to improve
- Where regulators should focus their efforts going forward in digital currencies
“Banking Circle will give financial institution clients the ability to convert fiat to USDC so that they can facilitate faster, cheaper payments for individuals and businesses” commented FXC Intelligence Senior Copywriter Joe Baker.
“As cross-border payments players continue to bet on USDC, we’ll see how the coin’s position in the digital payments landscape evolves moving forward. And longer term, we’ll be watching how USDC’s position evolves as Central Bank Digital Currencies (CBDCs) come online.”