The Circle Payments Network has been designed to enable international payments to be processed more quickly, cost-effectively, and with greater transparency, with settlements being facilitated through the USDC stablecoin.
The mainnet of the Circle Payments Network has been launched, introducing a cross-border payment solution powered by the USDC stablecoin.
It was announced by USDC issuer Circle in an X post that the first transactions on the network have already been processed.
It was stated by the company that the cross-border payments market, valued at $190 trillion, is currently fragmented, opaque, slow, and reliant on manual processes. It was further emphasized that settlement is delayed by several days, capital remains idle, and visibility is severely restricted.
It was also highlighted by Circle that cross-border transactions remain costly, with reference made to a World Bank report indicating fees can reach up to 6%.
It was stated by Circle that the Circle Payment Network (CPN) introduces blockchain-level speed and security to cross-border transactions, emphasizing that it is not only faster but also programmable, transparent, continuously operational—and significantly more cost-effective.
It was stated by Circle that collaboration is underway with institutions such as Banco Santander, Deutsche Bank, Société Générale, and Standard Chartered Bank to ensure the Circle Payment Network (CPN) is developed in accordance with rigorous standards of trust and operational reliability.
Global Settlements Enter Real-Time Era with Blockchain-Powered Network
The launch of the Circle Payments Network was described as a significant advancement for real-time global finance by Joe Sticco, co-founder of Cryptex Finance, in an email shared with The Defiant. It was noted by Sticco that although stablecoins such as USDC might not instantly substitute platforms like Venmo or Zelle for daily use by U.S. consumers, their influence is expected to be substantial within institutional and cross-border payment sectors.
It was highlighted by Sticco that the Circle Payments Network eliminates inefficiencies commonly found in traditional banking systems and operates continuously without interruption—an advantage not shared by the existing SWIFT infrastructure. According to him, the launch of CPN represents a significant advancement toward achieving true interoperability between blockchain-based financial infrastructure and the global financial ecosystem.
The significance was clearly conveyed by Patrick Gerhart, president of Banking Operations at Telcoin, a DeFi platform catering to mobile phone users. He explained that the network is expected to enable regulated institutions and financial firms to conduct payments more effectively through the use of stablecoins and certain elements of public blockchains. These transactions, he noted, would be facilitated in a compliant fashion that aligns with prevailing legal and regulatory requirements.
It was noted by Patrick Gerhart that the network does not currently assist consumers with everyday purchases such as buying a cup of coffee. He explained that within the United States, while stablecoins may eventually be used for domestic transactions involving goods and services, widespread adoption could take time. This delay is attributed to the efficiency of the existing payment systems, which are already based on the U.S. dollar. However, Gerhart emphasized that stablecoins offer particular value to individuals in countries where access to U.S. dollars is limited.
The system is expected to be utilized directly by U.S. residents initially through remittance workers sending funds to their home countries.
Yield-Bearing Stablecoins Surge Amid Ongoing Regulatory Uncertainty
With a market capitalization of $60.5 billion, USDC is not structured to provide yield to its holders. Similarly, Tether’s USDT, which leads the market with a capitalization of $152 billion, is also not designed to offer returns on held stablecoins.
According to a recent report released by the blockchain investment firm Spartan Group, rapid growth is being observed in the market segment of yield-generating stablecoins.
The market capitalization of yield-bearing stablecoins has been expanded from under $1.5 billion at the beginning of 2024 to approximately $11 billion at present.
It was stated by Gerhart that yield-bearing stablecoins might offer significant advantages to a wide range of users; however, differing opinions on their implementation could result in limitations on their accessibility within the United States.
In the United States, yield-bearing stablecoins have been placed in a precarious position, with banks reportedly making aggressive efforts to have them banned under the forthcoming stablecoin regulatory legislation expected from Congress. Concerns have been raised by banks that these stablecoins might lure consumers away from traditional bank accounts, which typically provide minimal interest returns.
