Finastra and Circle Forge Strategic Collaboration to Bring Stablecoin Settlement to Cross-Border Payments
Rhea-AI Summary
Circle (NYSE:CRCL) and Finastra announced a strategic collaboration to integrate USDC stablecoin settlement into cross-border payment flows. The partnership will connect Finastra's Global PAYplus (GPP) platform - which processes over $5 trillion in daily cross-border transactions - to Circle's payment infrastructure.
The integration enables banks to utilize USDC for settlement while maintaining fiat currency payment instructions, reducing dependence on traditional correspondent banking chains. This collaboration aims to provide financial institutions with faster settlement times while maintaining compliance and FX processes, without requiring standalone payment infrastructure development.
Positive
- Integration with Finastra's platform processing $5 trillion in daily cross-border transactions expands USDC's market reach
- Partnership enables faster settlement times for cross-border payments
- Banks can maintain existing fiat currency processes while leveraging stablecoin benefits
- Reduces reliance on traditional correspondent banking chains
Negative
- Implementation and adoption by banks may face regulatory uncertainties
- Integration complexity could pose initial operational challenges
News Market Reaction
On the day this news was published, CRCL declined 1.28%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
USDC settlement will integrate into Finastra's Global PAYplus (GPP) platform, enabling banks worldwide to innovate in cross-border money movement
USDC is a regulated, fully-reserved stablecoin, designed to maintain a stable value that provides transparency for near-instant settlement. Finastra will connect its GPP customers - processing over
"This collaboration is about giving banks the tools they need to innovate in cross-border payments without having to build a standalone payment processing infrastructure," said Chris Walters, CEO of Finastra. "By connecting Finastra's payment hub to Circle's stablecoin infrastructure, we can help our clients access innovative settlement options."
"Finastra's reach and expertise in powering the payments infrastructure for leading banks worldwide makes them a natural choice to further expand USDC settlement in cross-border flows," said Jeremy Allaire, Co-founder, Chairman and CEO of Circle. "Together, we're enabling financial institutions to test and launch innovative payment models that combine blockchain technology with the scale and trust of the existing banking system."
About Finastra
Finastra is a global leader in financial services software, trusted by 8,000+ customers - including 45 of the world's top 50 banks - in over 130 countries. With expertise in Lending, Payments, Universal Banking, and Treasury & Capital Markets, we deliver reliable, scalable, mission-critical solutions such as Loan IQ, LaserPro, Trade Innovation, Essence, Global PAYplus, Payments To Go, and Financial Messaging. Backed by Vista Equity Partners, we co-innovate with customers to build modern technology that helps financial institutions grow with confidence. Visit www.finastra.com or follow Finastra on LinkedIn.
About Circle Internet Group, Inc.
Circle (NYSE: CRCL) is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce, and financial applications worldwide. Circle is building the world's largest, most-widely used, stablecoin network, and issues, through its regulated affiliates, USDC and EURC stablecoins. Circle provides a comprehensive suite of financial and technology services that empower enterprises and developers to integrate stablecoins and blockchains into their products, services and business operations. For more information visit www.circle.com.
Notes:
USDC is issued by regulated affiliates of Circle. A list of Circle's regulatory authorizations can be found at www.circle.com/en/legal/licenses.
Logo - https://mma.prnewswire.com/media/1916021/5479667/FINASTRA_Logo.jpg
View original content to download multimedia:https://www.prnewswire.com/news-releases/finastra-and-circle-forge-strategic-collaboration-to-bring-stablecoin-settlement-to-cross-border-payments-302540007.html
SOURCE Finastra
FAQ
What is the partnership between Circle and Finastra about?
How much in daily transactions does Finastra's GPP platform process?
What are the benefits of Circle's USDC integration with Finastra?
How will banks use USDC in Finastra's payment system?
What is USDC's role in this partnership?
