Circle forms payments network with $61 billion USDC backing

Circle has launched the Circle Payments Network (CPN), a consortium leveraging stablecoins like USDC (CRYPTO:USDC) and EURC (CRYPTO:EURC) to streamline cross-border transactions.

The network, which includes over 20 initial partners such as World Remit, Yellow Card, and Fireblocks, aims to address inefficiencies in global money movement.

According to Circle’s announcement, CPN will focus on remittances, invoice payments, treasury services, and payroll processing.

“Existing cross-border payments can be slow and expensive,” the company stated, adding that CPN aims to introduce “programmable, secure, and always available” solutions.

USDC, Circle’s flagship stablecoin, currently holds a market capitalisation of approximately $61 billion.

Major financial institutions like Standard Chartered and Deutsche Bank will serve as advisors, with additional partners expected to join.

The network’s structure emphasises collaboration, allowing participants to utilise stablecoins for near-instant settlement and reduced operational friction.

“CPN is designed to bring efficiencies to the payments system,” Circle noted in its announcement.

Industry observers highlight the potential for stablecoins to simplify compliance and lower costs in international transactions.

While traditional systems often involve multiple intermediaries, CPN’s blockchain-based approach could enable direct settlements between institutions.

Circle’s move aligns with broader trends in financial technology, as regulators increasingly scrutinise cross-border payment mechanisms.

The company did not specify regulatory approvals for CPN but emphasised adherence to existing compliance frameworks.

The network’s launch follows growing demand for faster, cost-effective payment solutions, particularly in emerging markets.

Analysts suggest CPN could compete with established players like SWIFT by offering programmable features and 24/7 availability.

“This is a logical step for Circle, given USDC’s role in crypto markets. The challenge will be scaling adoption among traditional financial institutions,” said one fintech analyst.

As CPN rolls out, stakeholders will monitor its impact on transaction speeds and fees.

The initiative represents one of the largest stablecoin-driven payment networks to date, with implications for both crypto and traditional finance sectors.

Circle has not disclosed specific transaction volume targets but emphasised CPN’s focus on interoperability and security.

The project’s success may hinge on regulatory clarity and institutional participation in the coming months.

At the time of reporting, the USDC (USDC) price was $0.9999.