Circle-Finastra tie-up enables banks to make cross-border payments without correspondent banks

• Circle has agreed to link its payments infrastructure with the cross-border payments platform provided to banks by technology vendor Finastra

• The link will enable banks to settle payments in the USDC Stablecoin without requiring customers to instruct in USDC

• The arrangement gives banks the option to settle payments without going via their traditional correspondent banks

Payments technology vendor Finastra and Circle, issuer of the USDC Stablecoin, say they are working together to enable banks to use USDC to settle cross-border payments.

The aim is to connect Finastra’s Global PAYplus (GPP) payments application – currently processing over US$5 trillion in cross-border transactions every day - to Circle’s payments infrastructure.

The link will enable settlement in USDC even when payment instructions on both sides remain in fiat currency.

“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,” says 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.”

In other words, by enabling settlement in USDC, banks can bypass their usual correspondent banks.

“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,” adds 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.”