Circle, the company behind USDC, has announced new partnerships with Mastercard and Finastra aimed at integrating USDC into the traditional banking infrastructure.
Partnership with Mastercard
Circle and Mastercard announced a partnership that will allow acquirers and merchants in Europe, the Middle East, and Africa to settle transactions in USDC and Euro Coin (EURC). This is the first instance of stablecoin settlement being available on Mastercard’s regional network. Mastercard noted that the implementation of this service will help merchants make faster and more efficient payments without the need for intermediaries, which has been common practice in the past.
Integration with Finastra
Financial software company Finastra has also added support for USDC in its Global PAYplus platform. This platform is widely used among banks and handles over $5 trillion in cross-border transactions daily. The integration allows banks in over 50 countries to settle payments in USDC even if the payment instructions are written in legacy fiat currencies such as the dollar or euro. This solution enables banks to offer faster and more cost-effective international payments without needing to change their infrastructure.
Global Enhancement of USDC
Circle's activities with Mastercard and Finastra are part of a broader strategy to increase the use of USDC globally. This collaboration comes after the passage of the GENIUS Act in the U.S., which provides a federal legal framework for stablecoins. Additionally, Circle teamed up with the crypto exchange OKX to offer zero-fee USDC conversions into U.S. dollars, boosting USDC liquidity in Asia and Europe. South Korean banks are also negotiating with Circle regarding potential partnerships in the stablecoin sector.
Thus, Circle's new partnerships with Mastercard and Finastra represent a significant step in the development of stablecoins and their integration into the traditional financial system, potentially opening new opportunities for international settlements.
