Circle Launches CPN Targeting Cross-border Transactions

Stablecoin issuer Circle has announced a payments network for financial institutions offering real-time and cost-effective payments.

Stablecoin issuer Circle has announced a payments network for financial institutions offering real-time and cost-effective payments, an offering that will attempt to snag market share for Ripple (XRP) Payments in the cross-border transactions segment.

According to the announcement on X, the Circle Payments Network will provide round-the-clock, low-cost, and near-instant settlement for financial institutions. The network will also support invoice payments, remittances, treasury services, and contractor payouts.

CPN will rely on Circle's stablecoins USDC and EURC to facilitate seamless and efficient cross-border payments, circumventing traditional bottlenecks.

"By orchestrating stablecoin payments, Circle Payments Network enables payment providers to unlock new markets and new business models faster than ever before," said Circle CTO Nikhil Chandhok.

In the first phase, CPN has secured partnerships with 20 design partners, including Flutterwave, CoinMENA, Coins.ph, WorldRemit, and Yellow Card.

Furthermore, financial institutions will be able to easily integrate with CPN through a single technology stack, while offering flexible payment terms and efficient working capital management.

"We are not just building stablecoins, we are building a modern infrastructure for global payments," added Chandhok.

The recent passage of the STABLE Act will provide the necessary regulatory direction for stablecoin issuers like Circle as they seek to expand the scope of their offerings.

CPN will compete with Ripple Payments, which is currently enjoying a first-mover advantage in the ecosystem with its On-Demand Liquidity (ODL) offering.

Running on the XRP Ledger, Ripple Payments allows banks to process international transactions at a lower cost and with faster settlement times compared to traditional cross-border payment rails.

However, CPN is poised to be a direct competitor to Ripple Payments given its initial partnerships with major payment providers and the potential for rapid integration.

Both Ripple and XRP are mulling over the prospects of an IPO in 2024 as the company continues to accrue large outsized gains.

The integration of SWIFT, which is used by over 11,000 financial institutions in 212 countries, would be a significant milestone for expanding the reach of Ripple’s ODL service.

The potential partnership between SWIFT and Ripple has been a recurring topic of discussion throughout the year, hinting at a possible collaboration.

However, an official announcement from either company is still pending.

Despite the rumors and speculations, the integration of SWIFT with Ripple’s ODL service could have significant implications for the future of cross-border payments.

It would enable faster, cheaper, and more efficient movement of money across borders, ultimately benefiting businesses and consumers worldwide.

As the company continues to accrue large outsized gains, Ripple is planning to apply for an IPO in 2024, sources close to the matter have revealed.

The move comes as the blockchain company seeks to expand its operations and capitalize on the growing interest in cryptocurrency and Web3 technologies.

According to the sources, Ripple has already begun internal discussions about the IPO and could file for an initial public offering as early as the second half of 2024.

The company's founders and early investors would likely sell a portion of their shares in the IPO, which could value Ripple at several billion dollars.

"We are exploring a public listing in the second half of 2024," a spokesperson for Ripple said in a statement to Bloomberg.

"We are still in the early stages of planning and have not yet made any final decisions."

The news comes after a turbulent period for Ripple, which faced a protracted legal battle with the US Securities and Exchange Commission (SEC).

The SEC alleged that Ripple sold unregistered securities in the form of its XRP token to raise $1.3 billion.

However, a judge ruled in favor of Ripple on both counts, paving the way for the company to expand its operations.

"This is a significant moment for Ripple and the broader cryptocurrency industry," said an investment banker who is advising Ripple on the IPO.

"There is a lot of demand for new tech IPOs, and Ripple fits the bill perfectly."

The investment banker added that Ripple's IPO could be one of the largest tech IPOs in recent years.

"It could be a $10 billion to $15 billion IPO," he said.

"That would make it bigger than the IPOs of Airbnb, Uber, and Zoom."

An IPO would provide Ripple with access to a deep pool of capital that it could use to invest in new technologies, expand into new markets, and make acquisitions.

It would also increase the liquidity of Ripple's stock and make it more accessible to individual investors.

"We are committed to providing our investors with the opportunity to participate in Ripple's success story," said a spokesperson for Ripple.

"An IPO would be a natural next step in our evolution."

Several crypto companies have gone public in recent years, including Coinbase