Circle partners with Finastra to expand USDC’s role in cross border payments

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Circle and financial software giant Finastra announced Wednesday a partnership to integrate USDC stablecoin settlement into the backbone of global banking infrastructure, a move aimed at modernizing cross-border payments long plagued by high costs and delays.

The collaboration will connect Finastra’s Global PAYplus (GPP) platform, which processes more than $5 trillion in daily cross-border transactions, to Circle’s payment infrastructure.

Banks using GPP will gain the ability to settle transactions in USDC, a fully reserved and regulated stablecoin pegged to the U.S. dollar, even when underlying instructions are denominated in traditional fiat currencies.

Digital settlement models

By offering a blockchain-based settlement layer within the existing payments ecosystem, the initiative seeks to reduce reliance on correspondent banking chains, which can take several days and add layers of fees.

Instead, banks will be able to clear and settle transactions more quickly while still following compliance and foreign exchange processes.

Finastra CEO Chris Walters said the partnership is designed to give banks an off-the-shelf option to test digital settlement.

According to Walters:

“By connecting Finastra’s payment hub to Circle’s stablecoin infrastructure, we can help our clients access innovative settlement options without the burden of building their own systems.”

For Circle, whose USDC supply has grown into the tens of billions in circulation, the deal represents another step in embedding stablecoins directly into traditional finance.

Circle co-founder and CEO Jeremy Allaire said Finastra’s global network of clients makes the partnership a powerful channel to expand USDC adoption.