TL;DR
- Circle launched a cross-border payments network using USDC, offering real-time settlements and lower costs for global transfers.
- The project connects Latin America and Asia, with plans to expand to Nigeria and the European Union in the coming months.
- Alfred Latam and Tazapay will be the network’s first partners, enabling instant transactions without banking intermediaries.
Circle announced the launch of a cross-border payments network that uses stablecoins as the basis for real-time settlements. Named the Circle Payments Network (CPN), this service integrates USDC as its operating currency and connects financial institutions and digital service providers to enable faster and cheaper international transfers.
The project begins operations between Latin America and Asia, two regions with high activity in remittances and digital commerce. The company confirmed plans to extend this coverage to markets like Nigeria and the European Union over the next few months. With this expansion, Circle aims to meet growing demand for more efficient alternatives to traditional networks, which typically involve high fees and lengthy processing times.
To launch the service, Circle secured agreements with Alfred Latam and Tazapay, who will serve as the network’s initial partners. These alliances will allow business users and local payment platforms to access immediate transactions in stablecoins, bypassing banking intermediaries and cutting operational costs on international transfers.
Circle Puts Pressure on Visa and Mastercard
The system operates under a regulatory compliance framework backed by CDS membership standards, aiming to offer legal and financial security to connected operators. This structure positions Circle to work with institutional sectors that require guarantees of transparency and oversight in digital transactions.
Jeremy Allaire, CEO of Circle, stated that the initiative addresses the need for faster, more agile solutions for moving money across borders. According to several industry analysts, this launch poses a direct challenge to the current leaders in international payment processing, including Visa and Mastercard. The ability of stablecoins to resolve delays and eliminate excessive fees gives networks like this a competitive edge over traditional methods.
USDC currently has a market capitalization of $60.52 billion and a daily trading volume exceeding $12 billion. Its price stability, combined with growing use on payment and remittance platforms, confirms its value as a vehicle for global transfers.
