The Circle Payments Network enables faster, more cost-effective, and transparent international payments by settling transactions through the USDC stablecoin.
Circle launched the mainnet of its Payments Network, introducing a cross-border payment solution powered by the USDC stablecoin.
USDC issuer Circle announced in an X post that the network has already processed its first transactions.
The company stated that the $190 trillion cross-border payments market remains fragmented, opaque, and slow, relying heavily on manual processes. It emphasized that settlements take several days, capital stays idle, and visibility remains severely limited.
Circle also highlighted that cross-border transactions remain costly, citing a World Bank report showing fees can reach as high as 6%.
Circle stated that the Circle Payment Network (CPN) brings blockchain-level speed and security to cross-border transactions, emphasizing its superior speed, programmability, transparency, 24/7 availability, and cost-effectiveness.
Circle stated that it is collaborating with institutions such as Banco Santander, Deutsche Bank, Société Générale, and Standard Chartered Bank to develop the Circle Payment Network (CPN) in line with strict standards for trust and operational reliability.
Global Settlements Enter Real-Time Era with Blockchain-Powered Network
Joe Sticco, co-founder of Cryptex Finance, described the launch of the Circle Payments Network as a major advancement for real-time global finance in an email shared with . He noted that stablecoins like USDC may not immediately replace platforms such as Venmo or Zelle for everyday use by U.S. consumers, but they are poised to significantly impact institutional and cross-border payment sectors.
Sticco highlighted that the Circle Payments Network eliminates inefficiencies common in traditional banking systems and operates continuously without interruption—an advantage the existing SWIFT infrastructure does not offer. 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.
Patrick Gerhart, president of Banking Operations at Telcoin, clearly conveyed the significance of the network. He explained that it would enable regulated institutions and financial firms to conduct payments more effectively using stablecoins and elements of public blockchains. He noted that these transactions would follow a compliant approach aligned with current legal and regulatory requirements.
Patrick Gerhart noted that the network currently does not support everyday consumer purchases like buying a cup of coffee. He explained that stablecoins could eventually support domestic transactions in the U.S., but widespread adoption may take time because existing dollar-based payment systems remain highly efficient. However, Gerhart emphasized that stablecoins hold significant value for people in countries with limited access to U.S. dollars.
U.S. residents are expected to begin using the system by sending remittances to their home countries.
Yield-Bearing Stablecoins Surge Amid Ongoing Regulatory Uncertainty
USDC, with a market capitalization of $60.5 billion, does not provide yield to its holders. Likewise, Tether’s USDT, which leads the market with a capitalization of $152 billion, also offers no returns on held stablecoins.
A recent report from the blockchain investment firm Spartan Group observed rapid growth in the yield-generating stablecoin market segment.
Yield-bearing stablecoins have grown in market capitalization from under $1.5 billion at the start of 2024 to approximately $11 billion today.
Gerhart stated that yield-bearing stablecoins could offer significant advantages to a wide range of users; however, differing opinions on their implementation might limit their accessibility within the United States.
In the United States, banks have reportedly pushed aggressively to ban yield-bearing stablecoins under the upcoming stablecoin legislation from Congress. They argue that these stablecoins could draw consumers away from traditional bank accounts, which usually offer minimal interest.
