Digital Transactions Authoritative, insightful and timely information for payments professionals
This month’s cover story, as you’ll see if you turn to page 23, is all about stablecoins. If you’ve been paying the least attention to news about payments, you may have noticed this species of cryptocurrency has been getting plenty of attention lately.
That’s because the companies that run these transactions have been active—very active. And they’re ambitions extend to everyday payments. With what amounts to digital money.
For example, Circle Internet Group Inc. is working with Matera Inc., a developer of banking technology, in a move aimed at speeding adoption of stablecoins by individuals and companies, as the two firms announced last month.
In the collaboration, Matera will integrate its Digital Twin real-time ledger with Circle’s platform to support routine payments using Circle’s USDC coin, the companies say. The move is aimed at advancing stablecoins beyond their utility as a store of value.
The stated reason for this collaboration should interest everyone reading this column: It’s to establish stablecoins as a routine medium of exchange.
The link from Circle to the Digital Twin ledger will support instant transactions without the need for banks to build out “complex infrastructure,” the companies say in their announcement, adding that the integration embraces links to local payment networks in parts of the world, such as the PIX system in Brazil.
Now, Circle went public last month in a frenzied move that saw its shares soar on the New York Stock Exchange from an opening value of $69 to $103.75. By June 19, the stock was trading just shy of $200. Philadelphia-based Matera operates in both Brazil and the United States, while also maintaining an office in Canada.
PayPal Holdings Inc., that stalwart of fiat money, said it plans to enable its PayPal USD stablecoin on the Stellar network. Heard of Stellar? It’s a blockchain said to be suited for everyday payments. PayPal’s plan requires approval from the New York State Department of Financial Services, but the move would expand PYUSD beyond its current availability on the Ethereum and Solana blockchains and enhance its availability for cross-border payments, PayPal says.
“As we see cross-border payments being a key area where digital currencies can provide real-world value, working with Stellar will help advance the use of this technology and provide benefits for all users,” said May Zabaneh, vice president of the Blockchain, Cryptocurrency, and Digital Currency Group at PayPal, in a statement at the time of the announcement.
PayPal is no stranger to cryptocurrency. It first became involved in digital money in 2020, and introduced PYUSD in 2023.
Stablecoins are on the cusp of a major breakthrough. Get used to it.
Get ready for it.
—John Stewart, Editor john@digitaltransactions.net
