TLDR
- Circle is launching its new Circle Payments Network (CPN) for global cross-border payments using stablecoins like USDC and EURC
- The network aims to connect banks, payment providers, and digital wallets for real-time, low-cost international transactions
- Major banks including Santander, Deutsche Bank, Société Générale, and Standard Chartered are advising on CPN’s design
- Circle CEO Jeremy Allaire unveiled the product from the company’s One World Trade Center headquarters in New York
- The initiative targets inefficiencies in cross-border payments, which currently can take over a day and cost more than 6%
Circle, the company behind the $60 billion USDC stablecoin, has launched a new global payments infrastructure called Circle Payments Network (CPN).
The announcement was made on Tuesday from the company’s headquarters on the 87th floor of One World Trade Center in New York City.
The new network uses regulated stablecoins such as USDC and EURC to facilitate cross-border payments. It aims to connect various financial entities including banks, neo-banks, payment providers, virtual asset services, and digital wallets.
CPN is designed to offer real-time, low-cost, and transparent settlement of international transactions. Circle CEO Jeremy Allaire presented the new product to an audience of banks, fintechs, payment service providers, remittance providers, and USDC strategic partners.
Tackling Cross-Border Payment Inefficiencies
According to Circle, the new network addresses long-standing problems in international money transfers. The company cited World Bank data showing that cross-border payments can take longer than one business day to settle and cost more than 6%.
These inefficiencies have a greater impact on emerging markets. They limit global competitiveness for businesses in these regions.
“Since our founding, Circle’s vision has been to make moving money as simple and efficient as sending an email,” said Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle. “CPN is a major step in making that vision a reality for businesses worldwide.”
Banking Sector Support
Several major financial institutions are providing guidance on CPN’s development. These include Banco Santander, Deutsche Bank, Société Générale, and Standard Chartered.
Michael Spiegel, Global Head of Transaction Banking at Standard Chartered Bank, commented on the initiative. “Standard Chartered is continuously looking for opportunities to make cross-border payments more efficient, secure, and compliant to various regulatory requirements, globally,” he said.
“Circle’s compliance-first approach to building products like CPN is a game changer,” Spiegel added.
Expanding Use Cases
The network is supported by digital infrastructure firms like Fireblocks. It is expected to enable multiple use cases beyond simple transfers.
These include payroll processing, supplier payments, capital markets settlement, and treasury operations. The technology could become a viable alternative to traditional payment networks.
One source familiar with Circle’s plans said the company is “launching a payments network that is initially targeting remittances but is ultimately aiming to rival Mastercard and Visa.”
The timing of the launch coincides with new regulations around the world that are opening up the stablecoin space. Circle shares this market with larger competitor Tether.
Stablecoins have reached an adoption level where they could disrupt global money transfers. Venture capital firm Andreessen Horowitz recently compared this potential disruption to how WhatsApp changed international calling.
Fireblocks, a crypto custody technology specialist, has pointed to billions already being moved by payment service providers. These providers use stablecoins like USDC and USDT for cross-border payments.
Circle was recently in the news after announcing plans to go public in the U.S. The company later postponed its IPO due to uncertain market conditions.
The CPN launch represents Circle’s return to its roots as a payments company. The firm has successfully pivoted several times during its years in the crypto space.
