USDC Issuer Circle Internet Group Launches Stablecoin Settlement Network, Excluding All Korean Companies

Circle Internet Group, the issuer of the dollar-based stablecoin USDC, has launched a system for carrying out global remittance and settlement entirely with stablecoins. But it has been reported that no South Korean company has joined the network yet.

As such, critics are raising concerns that due to the legal and institutional vacuum regarding stablecoins in Korea, domestic financial institutions and fintech companies are lagging behind.

Circle Internet Group launched the Circle Payments Network (CPN) last month. It is a network that enables real-time settlement without going through banks.

CPN uses stablecoins to process real-time fund settlements between financial institutions. When a bank or payment company requests a remittance, the receiving financial institution presents an exchange rate and fee, and the transaction is conducted accordingly. The remittance mediums are the stablecoins USDC and the euro-based EURC. Circle plans to add more usable stablecoins in the future.

Circle explained that CPN significantly reduces fees compared to existing international remittances and shorten the settlement time, which typically takes 2-5 business days, to real-time levels.

Moreover, it does not go through intermediary banks or the Society for Worldwide Interbank Financial Telecommunication (SWIFT). This means it can bypass the existing global payment and settlement network. Until now, being excluded from SWIFT, established in 1973, meant being expelled from the global trade and economic network.

The spread of CPN could be seen as an issue that could shake the very foundations of the financial order. Seo Byung-yoon, head of the DSRV Future Finance Research Institute, diagnosed, “As traditional financial institutions recognize the advantages of stablecoins, such as low fees, immediate settlement, and convenient cross-border transactions, we are entering a stage of popularization where real-life use cases are rapidly expanding.”

The problem lies with South Korea. 28 companies have joined CPN as partners, including Singapore’s PromoPay and the U.S.’s Alfredpay, the UK’s BVNK, and Israel’s remittance company Nilus. Uruguay’s dLocal, Nigeria’s Flutterwave, and South Africa’s OnAfrica have also made the list.

What’s more, global banks such as Deutsche Bank, Santander Bank, Société Générale, and Standard Chartered Bank are participating as network advisors.

However, South Korea, lacking a foundation related to stablecoins, is unable to even participate in CPN discussions. To avoid falling behind global trends, market observers are urging the establishment of stablecoin-related systems.