The incorporation of USDC stablecoins for the conversion of fiat currencies is fundamental and generates confidence for banks and payment providers such as the WEB3 marketplace.
The European-based technology company is changing the course of the virtual asset market with an innovative new service for banks and payments companies. By adding USDC stablecoins to its payment rails to accept, process and settle payments, Banking Circle is offering an easy-to-implement solution that eliminates the need for significant financial or IT investment for companies looking to enter the web3 market. This is a key step in the democratization of global finance.
As Mishal Ruparel, Banking Circle’s director of virtual asset services, explained, digital assets will likely be the “leveler” of the global economy in the coming years, with the potential to eliminate the friction inherent in conventional currencies, “So it is critical that banks and payment providers have the ability to process certain types of cryptocurrencies in the same way they do fiat currencies”. With an already established reputation as a payments innovator, it is a natural step for Banking Circle to add stablecoins.
“We already have client demand for paying out in cryptocurrency, which they want to do in a way that is trustworthy and lower risk. We will, therefore, provide the facility to convert fiat to stablecoins in USDC, giving financial institutions the ability to send funds in stablecoin easily and with full regulatory compliance”.
USDC is the world’s second largest stablecoin by market capitalization, behind only Tether (USDT). The USDC stablecoin was launched in 2018 as a joint project between cryptocurrency exchange Coinbase and Circle, a U.S.-based blockchain payments firm founded by Jeremy Allaire and Sean Neville in October 2013.
The same announcement comments that Banking Circle’s choice of asset-backed stablecoins for its entry into the web3 market reflects their stability against fiat currencies, offering banks and payment providers the ability to facilitate payments outside of traditional banking rails. The reconciliation, speed and cost advantages are significant. With connections to crypto liquidity providers such as Coinbase, Banking Circle will act as a bridge between fiat bank accounts and stablecoins, which offer faster settlement than fiat transactions without any of the correspondent bank and network fees.
“Banking Circle is committed to offering suitable and future-proof payment solutions”, added Mishal Ruparel. “This latest addition to our payment rails is an important step as we grow our super-correspondent banking network, giving banks and payments companies the ability to move out of the traditional correspondent banking model and expand their offerings”.