European payments bank Banking Circle is adopting USD Coin (USDC) on its platform as a payment acceptance, processing and settlement method, according to a press release.
“Digital assets are likely to be the ‘leveler’ for the global economy in years to come with potential to remove the friction that is inherent in conventional currencies,” said Banking Circle Head of Virtual Asset Services Mishal Ruparel in the release.
Ruparel added in the release that it’s important for providers to be able to process “certain types of cryptocurrencies” similar to the way fiat is processed.
Clients have been asking for payouts in cryptocurrency, Ruparel said in the release, which Banking Circle will do by converting fiat to stablecoins in USDC, “giving financial institutions the ability to send funds in stablecoin easily and with full regulatory compliance.”
Banking Circle will act as a bridge between fiat bank accounts and stablecoins. The move aligns with Banking Circle’s Web3 plans and offers banks and other providers the ability to facilitate payments outside traditional bank rails, according to the release.
“This latest addition to our payment rails is an important step as we grow our super-correspondent banking network, giving banks and payments businesses the ability to step outside the traditional correspondent banking model and extend their offerings,” Ruparel said in the release.
In May, Banking Circle adopted Gresham Technologies’ cash reconciliation tool to improve its control mechanisms while simultaneously allowing it to innovate and scale.
Read more: Banking Circle Adopts Gresham Cash Reconciliation Tool
“This particular module was exactly suited to meet the challenges we’re facing today,” Banking Circle Head of Operations Morten Juhl Lilleøre said at the time.
In February, Banking Circle welcomed to its ecosystem Biller, an artificial intelligence (AI)-driven buy now, pay later (BNPL) firm for business invoices.
See more: B2B BNPL Firm Biller Joins Banking Circle
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