Banking Circle has announced it will add USDC stablecoins to its payment rails for payment acceptance, processing, and settlement, marking Banking Circle’s move into web3.
The company states that it has received demand to for other digital assets such as cryptocurrency, but has opted for stablecoins at this time due to their connection to fiat currencies.
Mishal Ruparel, head of virtual asset services at Banking Circle commented, “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.”
Ruparel continued, “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 […] 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.”
The company has argued that through connections into 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.