Circle Enables Banks to Settle Transactions with USDC Without Holding Stablecoins
Circle has launched CPN Managed Payments, a platform that enables banks and financial institutions to settle transactions using USDC without holding the stablecoin themselves.
The service is built on top of Circle's existing Circle Payments Network infrastructure and handles every step of the digital asset process for its partners, including minting and burning USDC, managing on-chain settlement, and overseeing compliance.
Circle Chief Product and Technology Officer Nikhil Chandhok said that the platform removes the complexity that has slowed institutional adoption of stablecoin-based payments, reducing foreign exchange costs and improving the speed of cross-border transactions.
The platform is aimed at institutions that face internal policies or compliance requirements preventing them from holding digital assets directly. By managing the stablecoin layer on their behalf, Circle allows those institutions to access blockchain-based settlement without taking on any direct digital asset exposure.