Barclays partners with payment fintech, Circle
(8 April 2016 – United Kingdom) Barclays has announced a partnership with a digital currency firm, social payments app Circle, following its recent launch in the United Kingdom (UK).
The fintech firm, which runs partly on bitcoin's blockchain network, was granted an “e-money” license by the the UK industry watchdog, the Financial Conduct Authority. The Boston-based start-up, which has raised US$76 million (A$100 million) in venture capital and counts Goldman Sachs among its backers, said the license would allow it to hold users' money and to facilitate domestic and international payments.
Currently, the payment service is offered in the UK and the US, where it launched at the end of 2015, and is now allowing cross-currency transfers of pounds and dollars. The firm says that it plans to launch in Europe later this year and allows money transfers in Euro at that time.
However, if a customer wants to send money to a country where Circle isn’t available, it is transferred into bitcoin, then transferred and settled within minutes via the blockchain network that validates bitcoin transactions. The bitcoin is then transferred back into the currency of that particular country.
Barclays Corporate Bank will provide the account that Circle needs to store sterling for users, and the infrastructure to allow transfers from any UK bank account in and out of Circle.
"We support the exploration of positive uses of blockchain that can benefit consumers and society," the bank said in a statement.
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