TLDR
- Circle is launching a new global payments and remittance network called Circle Payments Network (CPN)
- The network uses regulated stablecoins like USDC and EURC for cross-border transactions
- Major banks including Santander, Deutsche Bank, Société Générale, and Standard Chartered are advising on CPN’s design
- CPN aims to provide real-time, low-cost settlement of international transactions
- Digital infrastructure firm Fireblocks is supporting the network’s technology
Circle Internet Group, the company behind the $60 billion USDC stablecoin, has launched a new global payments infrastructure called Circle Payments Network (CPN). The announcement came on Tuesday from the company’s headquarters on the 87th floor of One World Trade Center in New York City.
CPN is designed to enable cross-border payments through regulated stablecoins such as USDC and EURC. The network connects banks, neo-banks, payment providers, virtual asset services, and digital wallets to offer real-time, low-cost settlement of international transactions.
Jeremy Allaire, Co-Founder, Chairman, and CEO of Circle, presented the new product at the launch event. “Since our founding, Circle’s vision has been to make moving money as simple and efficient as sending an email,” said Allaire. “CPN is a step in making that vision a reality for businesses worldwide.”
Banking Partnerships
Several major financial institutions are involved in shaping the new payment network. Banco Santander, Deutsche Bank, Société Générale, and Standard Chartered are advising Circle on CPN’s design and implementation.
Michael Spiegel, Global Head of Transaction Banking at Standard Chartered Bank, expressed support for the initiative. “Standard Chartered is continuously looking for opportunities to make cross-border payments more efficient, secure, and compliant to various regulatory requirements, globally,” said Spiegel. “Circle’s compliance-first approach to building products like CPN is a game changer.”
The event targeted banks, fintechs, payment service providers, remittance providers, and USDC strategic partners. These stakeholders will likely form the initial user base for the network.
Digital infrastructure company Fireblocks is providing technical support for the network. Fireblocks has previously noted billions in value being moved by payment service providers doing cross-border transactions using stablecoins like USDC and USDT.
Addressing Market Inefficiencies
The new payment network aims to solve long-standing problems in cross-border transactions. According to Circle, despite recent improvements, international payments can still take longer than one business day to settle and cost more than 6%, based on World Bank data.
These inefficiencies particularly impact emerging markets and limit their global competitiveness. CPN intends to reduce both the time and cost factors through blockchain-based stablecoin technology.
Circle points out that 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 transformed international calling.
The network is expected to support various use cases including payroll, supplier payments, capital markets settlement, and treasury operations. This versatility positions CPN as a potential competitor to traditional payment networks.
Industry observers familiar with Circle’s plans suggest ambitious goals for the company. “Circle is launching a payments network that is initially targeting remittances but is ultimately aiming to rival Mastercard and Visa,” said one person familiar with the plans.
The announcement comes at a time when new regulations around the world are creating more defined frameworks for stablecoin operations. Circle has shared the stablecoin market with larger rival Tether but seems positioned to leverage its regulatory compliance as a competitive advantage.
This launch represents a strategic move for Circle, which has successfully pivoted several times during its years in the crypto space. The new payment network marks a return to the company’s roots as a payments company while building on its stablecoin infrastructure.
Circle has been in the news recently after announcing plans to go public in the U.S., only to postpone its IPO due to uncertain market conditions. The company has not provided further updates on its public offering timeline.
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