A new partnership between FIS and Circle aims to provide financial institutions with the ability to transact in USDC.
Financial institutions in the US will be able to access blockchain-based payments via USD following a new partnership between FIS and Circle.
Announced on July 28, FIS’s recently launched Money Movement Hub will integrate with Circle to allow banks and other financial institutions to connect to multiple payment networks.
In addition, FIS plans to layer its real-time payments and enhanced fraud detection solutions on top of Circle’s blockchain-native infrastructure, providing an on-ramp for customers seeking to adopt digital assets.
“By providing our clients with direct access to USDC functionality within a regulated and compliant framework, they in turn will be able to offer their customers greater choice in payment methods than ever before,” said Jim Johnson, Co-President, Banking Solutions at FIS.
“We are helping them to embrace the latest technology to reduce the complexity and costs associated with making payments, enabling funds to flow with greater speed, accuracy and security throughout the money lifecycle.”
The GENIUS effect
Earlier this month, the floodgates for stablecoins swung open in the US with the passage of the GENIUS Act, the first comprehensive US federal law regulating payment stablecoins.
Signed into law on July 18, one of the Act’s strongest backers was US President Donald Trump, who used his political influence to fast-track the legislation through Congress.
Many traditional institutions see stablecoins as ideal for cross-border payments due to their blockchain-based speed and security, combined with a strict 1:1 backing by liquid assets like the US dollar.
In the run-up to the Act’s enactment, major banks, including Bank of America, publicly expressed intent to embrace stablecoins. Now, with clearer protections and compliance rules, these institutions are moving quickly to add digital assets into their existing operations.
Battle of the issuers
The race is on for stablecoin issuers to win over mainstream clients, and Circle finds itself well-positioned to capitalise on the surge in demand.
On June 17, OpenPayd announced a partnership with Circle to introduce a new infrastructure layer which seamlessly combines fiat and digital currencies.
OpenPayd, which processes more than $150.48bn (€130bn) in annual payment volume, will enable clients to convert between traditional currencies and USDC. The company has also been backed by payments giant Visa since December 2020.
“With the GENIUS Act now enacted as U.S. law, stablecoins are converging with mainstream finance and institutions are increasingly seeking faster, more transparent and economically efficient ways to move money,” said Kash Razzaghi, Chief Business Officer at Circle.
“Payment stablecoins represent a significant opportunity for US financial institutions to modernise and stay competitive.
“That’s why we’re partnering with FIS – by combining FIS’ ubiquitous banking and payments technology ecosystem with Circle’s blockchain-native infrastructure and USDC, we’re unlocking settlement at internet scale.”
** Could be worth tying in Callum’s PayPal story which is also going live today. Their new product offering will allow merchants in the US to accept crypto payments from consumers which will then become convertible to fiat currencies.
