Fintech leader FIS (Fidelity National Information Services) has teamed up with Circle to integrate USDC payment capabilities into its recently launched Money Movement Hub. This move will enable U.S. financial institutions to offer secure, real-time domestic and cross-border transactions in the world’s largest regulated stablecoin.
The partnership launched following the recently signed United States Stablecoin Act, also known as the GENIUS Act, which allows digital assets to be integrated with traditional finance in the United States. By partnering with Circle, FIS is reiterating its commitment to support digital currencies and introduce innovative solutions to clients across the financial space.
FIS Partnership Will Strengthen Cross-Border USDC Payment
The novel partnership between the FIS and stablecoin issuer Circle will enhance cross-border payments in USDC, as well as allow customers of financial institutions to make domestic payments. USDC will be issued through Circle’s regulated affiliates to maintain compliance.
Co-president of Banking Solutions at FIS, Jim Johnson, said the new partnership with Circle demonstrates the Fintech firm’s dedication to unlocking innovative technologies to help ease money movement around the globe. “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,” he said.
Chief Business Officer at Circle, Kash Razzaghi, said stablecoins are now converging with mainstream finance, thanks to the GENIUS Act. He added that financial institutions seek faster, more transparent, and economically efficient ways to move money, and stablecoins can provide that. “Payment stablecoins represent a significant opportunity for U.S. financial institutions to modernize and stay competitive. That’s why we are partnering with FIS.”
The Partnership Unlocks Settlement at a Larger Scale
The partnership will unlock settlement at a different level, following the launch of the Money Movement Hub. It’s the first FIS solution to integrate with Circle to make USDC payments available to all financial institutions in the United States. The Money Movement Hub connects several payment networks and embeds payment types.
To prevent fraud and other illicit crimes, FIS will add enhanced fraud detection systems to Circle’s blockchain infrastructure. It will provide a safer and scalable path for cryptocurrency transactions. FIS ranks second in the 2023 IDC Global Fintech Vendor Rankings and is also one of the Fortune 500 companies.
Benefits of the USDC Payment Partnership
FIS caters to over 13,000 institutions. Collaborating with Circle gives the USDC stablecoin issuer a boost in reach without traditional bank integrations. It dramatically expands USDC’s availability across retail banks and fintech firms, lowering adoption barriers.
Also, expansion into mainstream finance validates USDC as a compliant-friendly stablecoin beyond crypto-native use cases. It will bolster transaction volumes and liquidity, all of which strengthens the stablecoin as it enters mainstream finance.
As for FIS, adding a blockchain settlement layer alongside real-time payments and wire transfers modernizes the platform. Aggregating these features turns FIS into a unified platform that will give institutional clients a competitive edge as they navigate cross-border transactions. It eliminates the hurdle of building blockchain expertise in-house.
Are Stablecoins the New Global Currency?
Dollar-pegged coins now power a growing share of the global money payment movement. For instance, PayPal has its own stablecoin in PYUSD, which facilitates payment. Stripe and Shopify are embedding stablecoins in checkouts to ease transactions, benefitting those in areas with limited access to traditional banking infrastructure. Western Union has even indicated interest in exploring stablecoin use in digital wallets and plans to build on/off ramps.
Therefore, stablecoins are gradually becoming the new global settlement layer. In no time, they will compete with fiat payments because of their ease and stability, but won’t completely eradicate paper currency. However, banks must validate Circle’s regulated affiliates for custody purposes to avoid exchange or wallet failures.
Additionally, they must ensure cross-border payments are fully under regulatory compliance. It’s easy to commit fraud and illicit cyber crimes during cross-border transactions. That’s why robust KYC and AML detection mechanisms must be in place to prevent fraudulent activities.
