Finastra, a global financial software provider, is plugging Circle’s USDC stablecoin into its payments hub, giving banks a new way to settle cross-border transfers in near real time.

The integration will run through Global PAYplus (GPP), the first Finastra solution to connect banks to Circle’s payment infrastructure.

Finastra says GPP customers process more than US$5 trillion in cross-border transactions daily.

Banks will be able to settle in USDC even when payment instructions on both sides remain in fiat currency.

The option is intended to reduce reliance on correspondent banking chains, accelerate settlement, maintain existing compliance and FX processes, and lower the cost of international transfers.

USDC is a regulated, fully reserved stablecoin designed for transparent, near-instant settlement.

“This collaboration is about giving banks the tools they need to innovate in cross-border payments without having to build a standalone payment processing infrastructure.

By connecting Finastra’s payment hub to Circle’s stablecoin infrastructure, we can help our clients access innovative settlement options.”

said Chris Walters, CEO of Finastra.

“Finastra’s reach and expertise in powering the payments infrastructure for leading banks worldwide makes them a natural choice to further expand USDC settlement in cross-border flows.

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.”

said Jeremy Allaire, Co-founder, Chairman and CEO of Circle.

Circle had recently announced a partnership with Mastercard on a pilot in Europe, the Middle East, and Africa to explore USDC settlement for cross-border payments.

Featured image: Edited by Fintech News Singapore, based on image by stockboy via Freepik