Finastra’s $5 trillion GPP platform is being connected to Circle for faster, compliant USDC cross-border settlements.
A partnership to integrate USDC stablecoin settlement into the backbone of global banking infrastructure was announced by Circle and financial software giant Finastra on Wednesday, a move aimed at modernizing cross-border payments long plagued by high costs and delays.
The collaboration will connect Finastra’s Global PAYplus (GPP) platform, which processes more than $5 trillion in daily cross-border transactions, to Circle’s payment infrastructure.
Banks using GPP will gain the ability to settle transactions in USDC, a fully reserved and regulated stablecoin pegged to the U.S. dollar, even when underlying instructions are denominated in traditional fiat currencies.
Digital Settlement Models Emerge in Finance
By offering a blockchain-based settlement layer within the existing payments ecosystem, the initiative seeks to reduce reliance on correspondent banking chains, which can take several days and add layers of fees.
Instead, transactions will be able to be cleared and settled more quickly by banks while still following compliance and foreign exchange processes.
Finastra CEO Chris Walters said the partnership is designed to give banks an off-the-shelf option to test digital settlement.
“By connecting Finastra’s payment hub to Circle’s stablecoin infrastructure, we can help our clients access innovative settlement options without the burden of building their own systems.”
According to Walters:
For Circle, whose USDC supply has grown into the tens of billions in circulation, the deal represents another step in embedding stablecoins directly into traditional finance.
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Circle co-founder and CEO Jeremy Allaire said the partnership is a powerful channel to expand USDC adoption, given Finastra’s global network of clients.
“Together, we’re enabling financial institutions to test and launch innovative payment models that combine blockchain technology with the scale and trust of the existing banking system.”
Allaire added:
The announcement comes as regulators in the U.S., Europe, and Asia step up scrutiny of stablecoins, while their potential role in payment innovation is being acknowledged.
The ability to use a regulated stablecoin for settlement inside widely used platforms could provide banks with a safe way to experiment with blockchain-based payments without disrupting existing compliance frameworks.
The Evolving Landscape of Cross-Border Payments
The cross-border payments market, estimated by McKinsey at more than $150 trillion annually, has faced mounting pressure to improve speed and transparency.
Initiatives like SWIFT gpi and central bank digital currency pilots have emerged to address inefficiencies, but a complementary solution is increasingly seen in stablecoins.
By building settlement directly into Finastra’s platform, which is used by banks in over 100 countries, USDC is being positioned by Circle as an institutional-grade tool rather than just a crypto-sector payment token.
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The model could allow banks to clear transactions around the clock and bypass some of the costlier intermediaries that dominate current payment corridors.
Collaborations like Finastra’s with Circle could gradually shift market infrastructure away from slow, multi-bank settlement processes toward faster hybrid systems that blend fiat rails with blockchain.
