Banks Get New Digital Backbone as USDC Reshapes Global Payments

Circle and Finastra are expanding the integration of

, a regulated, fully-reserved stablecoin, into traditional banking systems to streamline cross-border payments. The collaboration between Finastra and will connect Finastra’s Global PAYplus (GPP) platform—processing over $5 trillion in cross-border transactions daily—to Circle’s payment infrastructure. This integration allows banks to settle transactions in USDC, even when the original payment instructions remain in fiat currency, reducing reliance on traditional correspondent banking chains while maintaining compliance and foreign exchange (FX) processes [2]. The move aims to accelerate settlement times and reduce costs in international transfers, aligning with the growing adoption of digital assets in the global financial ecosystem.

Simultaneously,

has expanded its partnership with Circle to enable USDC and EURC settlement for acquirers in the Eastern Europe, Middle East, and Africa (EEMEA) region. This marks the first time that the acquiring ecosystem in EEMEA can settle transactions in stablecoins, enhancing Mastercard’s role in bridging blockchain-native crypto assets with traditional financial infrastructure. Arab Financial Services and Eazy Financial Services are among the first to leverage this development [1]. Mastercard’s strategy focuses on scaling stablecoins within everyday financial activities by investing in infrastructure and governance that support the evolution of fiat to tokenized and programmable money. This initiative builds on prior collaborations, including crypto card solutions such as Bybit and S1LKPAY, which already use USDC for transaction settlements [1].

The integration of USDC into traditional payment systems reflects the increasing demand for real-time, cost-effective, and scalable solutions in global commerce. Finastra CEO Chris Walters emphasized that this collaboration provides banks with the tools to innovate in cross-border payments without needing to build standalone payment infrastructures [2]. Similarly, Mastercard President for EEMEA, Dimitrios Dosis, highlighted the strategic importance of leveraging stablecoins to create a more efficient and trusted digital trade environment [1]. Both partners underscore the need for trust and compliance in digital finance, particularly as stablecoins become more embedded in global payment flows.

Circle, as a leader in the stablecoin market, continues to expand its infrastructure partnerships to facilitate broader adoption. The company’s CEO, Jeremy Allaire, noted that Finastra’s extensive reach among leading banks globally makes it an ideal partner to advance USDC’s use in cross-border flows [2]. In parallel, Mastercard is also expanding its stablecoin portfolio to include assets such as Paxos’ USDG, Fiserv’s FIUSD, and PayPal’s PYUSD, reinforcing its commitment to integrating a diverse range of digital assets into its global payment network [1]. These efforts align with broader industry trends, including the recent passage of the GENIUS Act in the U.S., which provides a regulatory framework for stablecoin issuance and usage, further legitimizing their role in financial ecosystems.

The adoption of USDC is also gaining momentum in various markets, including emerging economies and blockchain networks. For instance, XDC Network—a Layer-1 blockchain optimized for global trade finance—has announced plans to integrate USDC and the Cross-Chain Token Protocol (CCTP) V2 to enhance cross-chain liquidity and institutional access [4]. This move underscores the growing recognition of USDC as a foundational tool for tokenized assets and trade settlements. As more institutions and platforms adopt stablecoins, the demand for their underlying reserves—such as U.S. Treasury bills—is expected to rise, potentially reshaping the broader financial landscape [3]. Both Circle and Mastercard are positioning themselves at the forefront of this transformation by ensuring their stablecoin infrastructure meets the highest standards of security, compliance, and utility.

Source:

[1] Mastercard expands partnership with Circle to transform digital settlement for merchants and acquirers in region (https://www.mastercard.com/news/eemea/en/newsroom/press-releases/en/2025-1/august/mastercard-expands-partnership-with-circle-to-transform-digital-settlement-for-merchants-and-acquirers-in-region/)

[2] Finastra and Circle Forge Strategic Collaboration to Bring Stablecoin Settlement to Cross-Border Payments (https://www.circle.com/pressroom/finastra-and-circle-forge-strategic-collaboration-to-bring-stablecoin-settlement-to-cross-border-payments)

[3] Stablecoins are set to reshape the multitrillion-dollar US Treasury market (https://finance.yahoo.com/news/stablecoins-are-set-to-reshape-the-multitrillion-dollar-us-treasury-market-100041163.html)

[4] USDC & CCTP V2 are coming soon to XDC Network (https://www.circle.com/blog/usdc-cctp-v2-are-coming-soon-to-xdc-network-what-you-need-to-know)