Banking Circle has added USDC stablecoins to its payment rails, in a move that will enable conversion from virtual assets to fiat currencies.

The payments bank said the new service, available to banks and payments businesses, will ‘shift the dial’ in the virtual assets market as organisations look to embrace web3.

By adding USDC stablecoins to its payment rails for payment acceptance, processing and settlement, Banking Circle said it would cut out the need for significant IT or financial investment for businesses aiming to enter the web3 market.

Banking Circle has chosen USDC, an asset backed stablecoin pegged to the US dollar.
The company said the decision reflects the need for stability against fiat currencies, giving banks and payments providers the ability to facilitate payments outside traditional banking rails.

With connections into crypto liquidity providers such as Coinbase, Banking Circle is aiming to 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.

“Digital assets are likely to be the ‘leveller’ for the global economy in years to come with potential to remove the friction that is inherent in conventional currencies”, explained Mishal Ruparel, head of virtual asset services, at Banking Circle.

“It’s critical, therefore, that banks and payments providers have the ability to process certain types of cryptocurrencies in the same way they do fiat currencies. With an already established reputation as an innovator in payments, it’s a natural next 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.”

Share Story: