Stablecoins Redefine Global Payments as Banks Embrace Tokenized Settlement

USDC is expanding its role in the global banking and payments ecosystem as Circle, the issuer of the second-largest stablecoin by market capitalization, partners with financial infrastructure firms to integrate the token into cross-border transactions. In a major development, Finastra, a London-based financial technology provider, has announced a collaboration with Circle to allow banks to settle cross-border transfers using USDC. The integration will start with Finastra’s Global PAYplus platform, which processes over $5 trillion in daily cross-border payment flows, enabling faster and more cost-effective transactions compared to traditional correspondent banking networks [2].

The partnership allows banks to settle transactions in USDC while the payment instructions remain in fiat currencies, reducing reliance on traditional intermediaries and streamlining international transfers [3]. This move reflects the growing interest among financial institutions in stablecoins as a viable alternative to conventional settlement methods, particularly in markets where high fees and slow processing times are common [3]. According to the firms, the integration gives banks the flexibility to innovate without building separate infrastructure, leveraging the combined strength of Finastra’s payment network and Circle’s blockchain-based settlement system [2].

Simultaneously, Mastercard has deepened its partnership with Circle to support stablecoin settlements in the Eastern Europe, Middle East, and Africa (EEMEA) region. This initiative enables acquirers and merchants in the region to settle transactions in USDC and EURC for the first time, with Arab Financial Services and Eazy Financial Services as the initial adopters [1]. The move is part of Mastercard’s broader strategy to integrate stablecoins into the mainstream financial system, emphasizing trust, security, and scalability [1].

Mastercard’s efforts are complemented by Circle’s broader push to expand USDC’s utility across global payment ecosystems. Recent partnerships with other crypto platforms and financial institutions, including OKX and SBI Group, have reinforced USDC’s presence in key markets such as Asia, the Middle East, and Europe [4]. Circle’s fiscal Q2 2025 results indicate that USDC in circulation has grown to $65.2 billion, up 90% year-over-year, reflecting increasing adoption and confidence in the stablecoin [2].

The growing adoption of USDC in cross-border transactions is also supported by developments in regulatory clarity, such as the recent passage of the GENIUS Act in the United States, which established a federal framework for stablecoins [4]. This legislative progress has encouraged more institutions to explore the use of stablecoins for settlement and payment purposes. In addition to Finastra and Mastercard, Tazapay—a cross-border payments firm—has secured funding from Ripple and Circle Ventures to further bridge fiat and stablecoin systems, with plans to expand its licensing across the U.S., UAE, and other regions [5].

Together, these initiatives underscore the shift toward tokenized and programmable money, driven by the need for faster, more transparent, and cost-effective global payment solutions. As Circle continues to develop its own blockchain infrastructure, such as Arc, the company is positioning USDC not only as a stablecoin but as a foundational component of a new era of digital finance [2].

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 Bring USDC Settlement to $5T Daily Cross (https://finance.yahoo.com/news/finastra-circle-bring-usdc-settlement-170925072.html)

[3] Finastra Taps Circle to Bring USDC Settlement to $5T (https://www.coindesk.com/business/2025/08/27/finastra-taps-circle-to-bring-usdc-settlement-to-usd5t-global-cross-border-payments)

[4] Circle Pushes USDC Deeper into Global Payments with (https://cointelegraph.com/news/circle-usdc-payments-new-deals-mastercard-finastra)

[5] Ripple, Circle Back Tazapay to Expand Cross-Border (https://crypto.news/ripple-circle-tazapay-cross-border-payments-2025/)