Finastra has partnered with Circle to improve cross-border payments with stablecoin settlement.
Following this announcement, Finastra will integrate USDC into its Global PAYplus (GPP) platform, enabling banks to contribute with developments in international money movement and use stablecoins for settlement in payment flows.
Stablecoins for settlement
The collaboration leverages Finastra’s payment hub solutions and Circle’s stablecoin infrastructure to offer fast and cost-effective international transfers. The two companies aim to offer financial institutions the tools necessary to improve cross-border transfers without building their own standalone payment processing framework. This will enable them to access innovative settlement options in a regulated and convenient way.
Circle chose Finastra for its reach and experience in supporting the payments infrastructure for leading banks worldwide to adopt USDC settlement in cross-border flows. By joining forces, the two companies share the same goal to enable financial institutions to test and launch new payment models that unify blockchain technology with the trust of the already existing banking system.
USDC is a regulated and fully reserved stablecoin created to maintain a stable value that offers near-instant settlement. Finastra will connect its customers, processing USD 5 trillion in international transactions daily, to Circle’s infrastructure, allowing for settlement in USDC in situations where payment institutions on both sides remain in fiat currency. This way, banks can reduce their reliance on traditional correspondent banking chains, accelerating their settlement time and maintaining compliance with FX processes.
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The collaboration comes as Circle partners with Mastercard to transform digital settlement for acquirers in EMEA, allowing institutions in the region to settle transactions using stablecoins. With this move, merchants across Eastern Europe, the Middle East, and Africa can leverage USD-pegged stablecoins across Mastercard’s global payments network, taking advantage of its scale and reach. The Arab Financial Services and Eazy Financial Services will benefit from this expanded effort.
