Report: Circle To Unveil New Payments and Remittance Network
Circle, the FinTech firm behind the $60 billion USDC stablecoin, is reportedly launching a new payments and cross-border remittance network.
According to a report Monday (April 21) by CoinDesk, invitations were sent to industry stakeholders for a launch event April 22 at Circle’s headquarters in New York featuring a presentation by CEO Jeremy Allaire.
The company didn’t immediately respond to a request by PYMNTS for confirmation.
A source familiar with the initiative told CoinDesk the platform is “initially targeting remittances but is ultimately aiming to rival Mastercard and Visa.”
PYMNTS reported earlier this month that Circle is following through on its delayed plans to go public, with a formal IPO by June.
“Circle said in a January 2024 press release that it confidentially filed paperwork for an IPO with the Securities and Exchange Commission (SEC). The company said that the number of shares to be offered and their price range had yet to be determined, and that the IPO was expected to happen once the SEC conducted a review,” PYMNTS wrote.
The IPO delay likely was caused by choppy markets. According to a Monday report by CCN, Circle’s SEC filing in January disclosed that its net income last year was $155.7 million, down from $267.5 million in profit the previous year.
Industry observers’ opinions about stablecoins — digital currency assets designed to hold a 1:1 value ratio to fiat currency — vary, especially when it comes to compliance and regulation by governments around the world. For example, a PYMNTS report noted that none of the proposed bills on Capitol Hill related to stablecoin oversight have passed.
According to an April 7 PYMNTS report, thanks to stablecoins, banks are paying closer attention to blockchain technology.
“Hundreds of billions of dollars move across blockchains while being stored in traditional financial institutions like banks or United States treasuries,” PYMNTS wrote.
In other Circle news, the stablecoin issuer announced a refund protocol that could bridge one of the biggest obstacles to stablecoin usage: reversible payments.
For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.
The post Report: Circle To Unveil New Payments and Remittance Network appeared first on PYMNTS.com.