Circle Launches Blockchain Network to Challenge SWIFT

Coin WorldMonday, Apr 21, 2025 6:33 pm ET
2min read

Circle Internet Financial, a prominent issuer of stablecoins, has introduced the Circle Payments Network (CPN), a blockchain-based platform designed to connect global

. The CPN leverages regulated stablecoins, with a focus on USDC and EURC, to facilitate real-time settlements and streamline cross-border payments and remittances. This initiative aims to outpace traditional systems like SWIFT by offering a more efficient and cost-effective solution.

The CPN is supported by a consortium of leading global banks, including BNY,

, , Société Générale, and Standard Chartered Bank. These partnerships are crucial for the successful launch and operation of the network. Additionally, the CPN has already secured several working partners in global financial markets, such as BCB Group, BVNK, CoinMENA, Coins.ph, Conduit, dLocal, dtcpay, Flutterwave, RedotPay, TazaPay, Transfero Group, Triple-A, Trubit, Unlimit, Yellow Card, Zepz, and Zodia Markets.

Jeremy Allaire, CEO of Circle, emphasized the company's vision to make moving money as simple and efficient as sending an email. The CPN represents a significant step towards achieving this goal, providing businesses worldwide with a seamless and efficient payment solution. Nikhil Chandhok, Chief Product and Technology Officer at Circle, highlighted that the CPN serves as a foundational layer for the always-on economy, enabling trusted institutions to move value across borders instantly. The network's programmable infrastructure allows for the embedding of value transfer into modern financial applications, a feat previously unattainable.

The CPN aims to challenge legacy systems like SWIFT by offering a more cost-efficient solution that supports blockchain technology, currently Ethereum (ETH) and Avalanche (AVAX). This strategic move is expected to enhance USDC's market dominance, potentially catching up with Tether USDT. The launch of the CPN is part of Circle's broader strategy to consolidate its position in the stablecoin market, where it has been a key player alongside rivals like Tether. The network's ability to support a wide array of financial operations, including invoice payments, remittances, treasury services, and payouts, positions it as a comprehensive solution that can rival traditional finance giants.

Circle's decision to launch the CPN comes at a time when new and emerging regulations around the globe are opening up opportunities in the stablecoin sector. The firm, which has successfully navigated the crypto space over the years, is now looking to return to its roots as a payments company. The CPN is initially targeting remittances but has the ultimate goal of rivaling major payment networks like Mastercard and Visa. The launch event, held at Circle's headquarters, featured Circle CEO Jeremy Allaire sharing his vision for the stablecoin giant's next move within the payments space. The event was aimed at banks, fintechs, payment service providers, remittance providers, and USDC strategic partners. Allaire's vision underscores Circle's commitment to leveraging stablecoins to disrupt global money transfers, much like how WhatsApp revolutionized international calls.

The CPN's launch is a significant step for Circle, which has been in the news recently for its plans to go public in the U.S. However, the firm postponed its IPO due to uncertain market conditions. Despite this setback, Circle remains focused on its mission to innovate in the payments space and solidify its position as a leader in the stablecoin sector. The CPN represents a strategic move that aligns with Circle's long-term goals and its commitment to leveraging technology to transform the financial landscape.