Circle to Launch Stablecoin-Powered Cross-Border Payments Network in May

Circle, the FinTech firm behind the USDC stablecoin, said Monday (April 21) that it plans to start rolling out a new cross-border payments network in May.

The Circle Payments Network (CPN) will connect financial institutions and enable real-time settlement of cross-border payments using USDC, EURC and other regulated stablecoins, the company said in a Monday press release.

CPN will enable connectivity to domestic real-time payment systems worldwide and is expected to power use cases like supplier payments, remittances, payroll, capital markets settlement, internal treasury operations and on-chain financial applications, according to the release.

“Since our founding, Circle’s vision has been to making moving money as simple and efficient as sending an email,” Circle Co-founder, Chairman and CEO Jeremy Allaire said in the release. “CPN is a significant step in making that vision a reality for businesses worldwide.”

PYMNTS reported earlier this month that Circle is following through on its delayed plans to go public, with a formal IPO by June.

“Circle said in a January 2024 press release that it confidentially filed paperwork for an IPO with the Securities and Exchange Commission (SEC). The company said that the number of shares to be offered and their price range had yet to be determined, and that the IPO was expected to happen once the SEC conducted a review,” PYMNTS wrote.

The IPO delay likely was caused by choppy markets. According to a Monday report by CCN, Circle’s SEC filing in January disclosed that its net income last year was $155.7 million, down from $267.5 million in profit the previous year.

Industry observers’ opinions about stablecoins — digital currency assets designed to hold a 1:1 value ratio to fiat currency — vary, especially when it comes to compliance and regulation by governments around the world. For example, a PYMNTS report noted that none of the proposed bills on Capitol Hill related to stablecoin oversight have passed.

According to an April 7 PYMNTS report, thanks to stablecoins, banks are paying closer attention to blockchain technology.

“Hundreds of billions of dollars move across blockchains while being stored in traditional financial institutions like banks or United States treasuries,” PYMNTS wrote.

In other Circle news, the stablecoin issuer announced a refund protocol that could bridge one of the biggest obstacles to stablecoin usage: reversible payments.

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