The role of stablecoins in cross-border payments: a conversation with Circle

With increasing demand for faster, more transparent, and cost-effective global transactions, stablecoins are emerging as a game-changer. 

In this interview, Nikhil Chandhok, Chief Product & Technology Officer at Circle, explores how Circle is shaping the future of cross-border payments through its newly launched Circle Payments Network, and what this means for the broader financial ecosystem.

Circle recently launched the Circle Payments Network, designed to facilitate the use of stablecoins in cross-border payments. Can you tell us more about the network’s vision, goals, and how it works?

Circle Payments Network (CPN) represents the next phase in Circle’s mission to make money move at the speed and efficiency of the internet. We have built a compliance-first, interoperable network that enables financial institutions to access and settle cross-border payments using trusted, fully reserved stablecoins like USDC and EURC and eventually other payment stablecoins.

CPN is not a money transmitter —it’s a coordination protocol that connects banks, PSPs, VASPs, and other financial institutions. It provides a unified compliance standard and framework for institutions and orchestrates payments, exchanges compliance information, and embeds stablecoin-based transfers into their workflows securely and at scale.

CPN allows institutions to convert fiat to USDC or EURC, transfer those assets globally in real time, and convert them back to fiat at the destination—delivering dramatic efficiency gains for global commerce.

How do stablecoins like USDC have the potential to disrupt traditional FX markets? What are the key use cases and benefits?

Stablecoins, particularly those that are fully reserved and transparently regulated, are a natural fit for cross-border payments and FX use cases. They offer near-instant settlement, 24/7 operability, near-zero cost, and native interoperability with digital wallets, blockchain infrastructure, and traditional financial systems.

The potential disruption lies in the ability of stablecoins to act as a universal digital settlement layer, removing unnecessary intermediaries and delays that plague traditional FX rails. With USDC, businesses can hold and move value across borders in an asset designed to maintain a stable value, avoiding intraday volatility and opaque FX spreads.

Key use cases include:

·        Supplier payments and invoicing in global trade;

·        Treasury and cash management for multinational companies;

·        Remittances and gig economy payrolls;

·        Capital markets settlement;

·        Onchain financial services across DeFi and Web3 ecosystems.

Who are the current participants in the Circle Payments Network, and what advantages does the network offer to stakeholders, both financial institutions and end-users? How can others get involved?

CPN already includes a diverse and global group of participants — ranging from banks and PSPs to neobanks and infrastructure providers. Early participants are operating on the CPN mainnet today, including Alfred Pay, Conduit, RedotPay, and Tazapay, with more in the pipeline. A number of globally systemically important banks (GSIBs) are advising on the network’s design so that it aligns with the operational, compliance, and risk expectations of leading banks.

For stakeholders, CPN provides:

·        A single technical and compliance integration to connect to a growing network;

·        A built-in mechanism for sharing AML/CFT and sanctions compliance data;

·        Seamless real-time payments using USDC and EURC;

·        Programmability via APIs and smart contracts.

Financial institutions can express interest and begin the onboarding process by visiting circle.com/cpn.

With growing competition in the stablecoin space, what differentiates Circle and USDC from other players in the market?

What sets Circle and USDC apart is our regulatory-first approach, integration with the global banking system, and a proven record of transparency and trust.

·        Transparency: Circle publishes detailed monthly reserve attestations and is committed to full disclosure on its reserve assets;

·      Compliance at Core: From MiCA in the EU, to Japan, Singapore, Canada, the UAE, and the US. Circle actively works with global regulators and policymakers to comply with forward-looking standards. Circle has built an extensive network of tier-one banks, market makers, and on/off-ramps that let institutions move between fiat and USDC with minimal friction—eliminating pre-funding costs and unlocking new corridors.

·     Enterprise-Grade Technology: USDC is integrated across hundreds of platforms and institutions and has processed over USD 30 trillion in all-time onchain volume as of June 29, 2025.       

CPN is the next step, turning these advantages into a fully interoperable payments network for the future of global money movement.

How are regulatory developments in the US and Europe, such as MiCA or pending US stablecoin legislation, shaping the future of the stablecoin ecosystem? What is Circle’s approach to compliance and transparency?

Regulatory clarity is critical for the mainstream adoption of stablecoins. The EU’s MiCA framework, which Circle was the first major global issuer to comply with, and the US Senate’s passage of the GENIUS Act, represent major milestones in global financial policy.

These frameworks bring legal certainty and allow trusted actors to build infrastructure at scale. They also provide a foundation for cross-border regulatory convergence, something that Circle strongly advocates for.

Circle’s approach has always been grounded in:

·        Transparency, including public reporting on reserve management;

·        Regulatory engagement, working directly with lawmakers and other stakeholders to support risk-based, technology-neutral regulation.

We view compliance not as a constraint, but as a competitive advantage, and we’re committed to helping shape a stablecoin ecosystem that is safe, open, and inclusive.

 

About author

Nikhil is responsible for accelerating product, technology, and AI agendas, developing accessible and easy-to-use products for new and existing customers. He has experience developing tech-forward products and software that advanced mobile devices, streaming video, AI, and Augmented Reality at companies, including Meta, Google, YouTube, and Microsoft.

 

 

About Circle Payments Network

 

Circle Technology Services, LLC (CTS) is the operator of Circle Payments Network (CPN) and offers products and services to financial institutions that participate in CPN to facilitate their CPN access and integration. CPN connects participating financial institutions around the world, with CTS serving as the technology service provider to participating financial institutions. While CTS does not hold funds or manage accounts on behalf of customers, we enable the global ecosystem of participating financial institutions to connect directly with each other, communicate securely, and settle directly with each other. CTS is not a party to transactions between participating financial institutions facilitated by CPN who use CPN to execute transactions at their own risk. Use of CPN is subject to the CPN Rules and the CPN Participation Agreement between CTS and a participating financial institution.