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Finastra, a London-based developer of payments software for banks, said Wednesday it will work with Circle Internet Group Inc. to let banks include stablecoin settlement in their cross-border payments processing. In related news, the cross-border payments technology provider Tazapay announced it has closed on a Series B round with funding from investors including Circle.
The Finastra link with Circle will work with Circle’s USDC coin, which is pegged to the U.S. dollar in a venture that represents the processor’s first effort to link banks to Circle’s payments technology, the companies say. In theory, the connection will enable much faster transfers at less cost than is the case with conventional cross-border payments.
Finastra says it will start by linking its larger clients—those processing at least $5 trillion per day in cross-border volume—to the Circle platform, and the parties say settlement will occur in USDC even when payment instructions indicate fiat currency. This move should speed settlement without compromising foreign-exchange or compliance mandates, they say.
Blockchain companies have been seeking ways to reassure banks and corporate entities regarding the safety and soundness of stablecoin commerce. As part of Wednesday’s announcement, Circle chairman and chief executive Jeremy Allaire noted the new venture with will allow banks worldwide to “test and launch innovative payment models that combine blockchain technology with the scale and trust of the existing banking system.”
The collaboration with Finastra comes two weeks after Circle’s announcement of Arc, a payments platform aimed at major money flows and part of the existing Circle Payments Network. Arc is expected to hasten foreign exchange transactions while offering what Circle said will be “sub-second instant finality” in settlement.
Finastra claims more than 8,000 clients, including 45 out of the 50 largest banks. New York City-based Circle issues both the USDC and EURC stablecoins and offers technology aimed at allowing companies to adopt blockchain technology and stablecoin issuance.
Circle’s investment arm, Circle Ventures, is among a group of companies investing in Tazapay, a Singapore-based cross-border payments platform, it was disclosed Wednesday. The company handles both card payments and stablecoins. The investment total for the round was not disclosed. Tazapay says it processes more than $10 billion annually across 70 global markets.
Licensed in Singapore, Canada, and the European Union, Tazapay’s service covers 70 markets and processes more than $10 billion in payment volume annually, according to the company’s Wednesday announcement. Other investors in the round include Peak XV Partners, Ripple (US), Norinchukin Capital, and GMO Venture Partners.
