Circle, 'USDC Payment Network' Operation... Aiming At Swift And Innovating Global Remittance

Stablecoin USDC issuer Circle has officially launched the blockchain-based global payment system ‘Circle Payment Network, CPN’. Circle aims to significantly improve the efficiency of cross-border remittances and business financial payments by targeting the traditional global payment network SWIFT.

Circle pointed out that “the global remittance market is $190 trillion in size but still fragmented, slow, and costly.” In fact, in the traditional financial network, remittances can take several days, and there may also be inefficiencies where capital is locked and fees of up to 6% can occur.

On the other hand, CPN is built to be programmable and blockchain-based, allowing for real-time payments and transparent settlements. Circle defined this system as an “always-operating global real-time payment network.”

Circle announced it has increased the reliability and operational standards of CPN by collaborating with major global banks such as Santander Bank, Deutsche Bank, Societe Generale, and Standard Chartered. It is evaluated that it is possible to organically connect existing financial infrastructure with blockchain through this.

DeFi Platform Cryptex Finance co-founder Joe Stico evaluated, “CPN can eliminate the structural inefficiencies of SWIFT and be a historic turning point in linking the global financial network to blockchain.”

However, some experts pointed out limitations. Patrick Gerhardt, Bank Operations Officer at Telcoin, stated, “While it will have a significant effect on large financial transactions between companies under regulation, there is still a long way to go to replace small payments such as retail payments or coffee prices.”

Circle’s recent move is noted as a case showing how decentralized finance can create connections with the traditional financial system, along with the expansion of stablecoin’s real use.