Stablecoins Reshape Global Payments as Traditional Banks Embrace Digital Settlement

Circle, the issuer of USD Coin (USDC), is deepening its integration into global payment systems through strategic partnerships with Mastercard and Finastra, marking a significant step in the expansion of stablecoin usage across traditional finance. The agreements aim to embed USDC as a settlement mechanism for cross-border transactions, enabling greater efficiency and reducing reliance on conventional correspondent banking networks. Mastercard announced that acquirers and merchants in Eastern Europe, the Middle East, and Africa (EEMEA) will now be able to settle transactions in USDC and Euro Coin (EURC), with Arab Financial Services and Eazy Financial Services as the first adopters in the region [1]. This development is a pivotal milestone, as it represents the first stablecoin settlement available through Mastercard in EEMEA, underscoring the growing recognition of stablecoins as viable tools for cross-border commerce [4].

Finastra, a London-based financial software provider, has also integrated USDC into its Global PAYplus platform, a system that processes over $5 trillion in cross-border transactions daily. The integration allows banks in 50 countries to settle international payments in USDC, even when the original payment instructions remain in fiat currencies. This innovation offers banks greater flexibility in managing liquidity and compliance while accelerating settlement times. According to Finastra CEO Chris Walters, the collaboration is designed to help financial institutions adopt blockchain-based payment models without the need to develop standalone infrastructure [3]. For its part, Circle’s CEO Jeremy Allaire highlighted Finastra’s global reach and expertise as critical to expanding the use of USDC in cross-border flows [3].

The partnerships reflect a broader trend of financial institutions and fintech firms embracing stablecoins as part of their digital transformation strategies. The expansion of USDC into EEMEA and global cross-border transactions is being supported by recent regulatory developments, including the U.S. Congress's passage of the GENIUS Act, which established the first federal framework for stablecoins. In July, Circle also partnered with OKX, one of the world’s largest crypto exchanges, to offer zero-fee USDC-to-U.S. dollar conversions, enhancing the stablecoin’s liquidity and appeal to traders [1]. In Asia, Circle has pursued collaborations with major banks and financial groups, including a joint venture with SBI Group, Ripple, and Startale to promote USDC adoption and develop a tokenized asset trading platform in Japan [1].

The strategic moves by Circle and its partners are not limited to North America and Europe. Japan has also seen increased activity in the stablecoin space. JPYC, a yen-pegged stablecoin, recently received Japan’s first funds transfer service provider license, signaling the country’s intent to reassert financial leadership in the Asia-Pacific. This development comes as Japan seeks to counter growing competition from China’s digital yuan and other integrated digital payment systems [7]. Monex Group, a major Japanese financial services company, is also considering issuing its own yen-pegged stablecoin, which would be backed by assets such as Japanese government bonds [6].

The global adoption of stablecoins is being driven by their ability to offer faster, cheaper, and more transparent cross-border payment solutions. According to the Stablecoin Industry Report: Q2 2025, the total market cap of stablecoins reached $166 billion by June 2025, with USD-based stablecoins dominating the landscape. In EEMEA, where the cost of sending $200 remittances remains above the UN’s Sustainable Development Goal (SDG) target, stablecoin-based settlements could reduce transaction costs while accelerating transfer times from days to near real-time [5]. This is particularly beneficial for small businesses, gig workers, and creators who often face delays and high fees in traditional international payment systems [5].

As stablecoins become more embedded in mainstream financial systems, institutions like Mastercard and Finastra are positioning themselves as key players in the transition from fiat to tokenized money. Mastercard’s Multi-Token Network, along with its Crypto Credential and Crypto Secure infrastructure, ensures that stablecoin transactions meet the highest standards of security and compliance [4]. By embedding stablecoin settlement into its global payment network, Mastercard is not only expanding its reach but also future-proofing its infrastructure in the evolving digital economy [5].

Source: [1] Circle pushes USDC payments new deals Mastercard Finastra (https://cointelegraph.com/news/circle-usdc-payments-new-deals-mastercard-finastra) [2] Circle and Finastra Form Cross-Border Stablecoin Pact Targeting Banks (https://www.pymnts.com/partnerships/2025/circle-and-finastra-form-cross-border-stablecoin-pact-targeting-banks) [3] Finastra and Circle Forge Strategic Collaboration to Bring Stablecoin Settlement (https://financialit.net/news/cryptocurrencies/finastra-and-circle-forge-strategic-collaboration-bring-stablecoin-settlement) [4] 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/) [5] Mastercard and Circle to Enable Stablecoin Settlement in More Regions Including Africa (https://www.ecofinagency.com/news-finances/2708-48201-mastercard-and-circle-to-enable-stablecoin-settlement-in-more-regions-including-africa) [6] Japan's Monex Group considers launching yen-pegged stablecoin (https://cointelegraph.com/news/japan-monex-group-considers-launching-yen-pegged-stablecoin) [7] How the JPYC Stablecoin Could Lead Japan's Digital Finance Comeback (https://thediplomat.com/2025/08/how-the-jpyc-stablecoin-could-lead-japans-digital-finance-comeback/)