Finastra, a leading financial service software provider, has entered into a strategic partnership with Circle, a global financial technology firm and renowned stablecoin issuer. Circle confirmed the development in a blog post on Wednesday, adding that the partnership would facilitate the integration of USDC ($1.00) settlement into cross-border payment flows. 

Finastra intends to utilize its payment hub solutions like Global PAYplus (GPP) as the initial solution to link financial institutions with Circle’s payment infrastructure via this partnership.This as revealed, will also facilitate quick and cost-effective international transfers.

USDC is a stablecoin that’s regulated and fully reserved, designed to maintain stable value and offer transparency for quick settlements. Finastra will connect its GPP customers to Circle’s infrastructure. This integration allows for settlements in USDC, even while payment instructions are exchanged in fiat currency on both sides. This also allows banks the freedom to reduce reliance on traditional correspondent banking chains, thus accelerating settlement time while maintaining compliance and FX processes.

Finastra CEO comments on the partnership

Chris Walters, the Chief Executive Officer of Finastra has shared his insight on the partnership. Chris noted that the partnership revolves around availing banks with the tools needed to innovate in cross-border payment without the need to build an independent payment processing infrastructure. He also emphasized that integrating Finastra’s payment hub with Circle’s stablecoin infrastructure can provide clients with innovative settlement options. 

Jeremy Allaire, the Co-founder, Chairman and Chief Executive Officer of Circle has also reacted to the development. Allaire emphasized that Finastra’s extensive reach and expertise in enhancing the payment infrastructure for top banks around the globe positions it as an ideal partner to facilitate the expansion of USDC settlement in cross-border transactions. The exec added that both parties are collaborating to empower financial institutions in testing and implementing innovative payment models. These models aim to integrate blockchain technology with the reliability and scalability of the current banking system.

Finastra, supported by Vista Equity Partners, emerge as a top financial services software provider relied upon by over 8,000 customers. With expertise in lending, payments, universal banking, treasury and capital markets, the firm provides robust, scalable solutions that are essential for driving success and meeting critical business needs.

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