Circle Launches Cross-Border Payment Network Supported by Stablecoins

Circle Internet Group Inc., the provider of the world's second-largest stablecoin, plans to launch a payment network that facilitates cross-border transactions using stablecoins. This information comes from Bloomberg, citing sources who preferred to remain anonymous as they discussed undisclosed plans.

The proposed network is designed to connect financial institutions and technology companies. This includes payment service providers, digital wallet companies, and banking app providers. The goal is to allow real-time settlement of cross-border payments.

The launch of Circle's payment network was first reported by Coindesk. Circle's plans highlight an increasing trend among traditional financial companies and cryptocurrency-focused firms to leverage stablecoins for faster and more cost-effective money transfers.

Currently, cross-border payments typically rely on a correspondent banking system. This system often leads to delays in settlement and additional costs due to intermediary involvement. Circle's new network aims to address these issues by leveraging the advantages of stablecoins.