Circle, the issuer of USDC, which ranks second in the global stablecoin market share, is expanding its cooperation with domestic banks and IT companies.
According to the financial industry on the 12th, Circle plans to meet with Shinhan Financial Group and Kakao Pay officials this month to discuss cooperation on stablecoins. This is expected to coincide with the visit of Circle's CEO, Heeth Tarbert. Previously, Circle had signed a comprehensive business agreement (MOU) with Hana Bank. An official in the cryptocurrency industry said, "Major companies, including the top four financial groups, are exploring the possibility of business cooperation with Circle," and added that "several are at the MOU stage".
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The market believes that cooperation between Circle and domestic financial institutions could be pursued in various forms, including issuing won stablecoins and joining the Circle Payment Network (CPN). Companies like Kakao and Naver, which have payment platforms, are expected to provide cross-border payment services using stablecoins in conjunction with CPN.
CPN supports real-time overseas remittance, payment, and settlement based on USDC and other Circle-issued stablecoins. For example, when an individual or company from Country A wants to send money to Country B, the CPN-registered financial institution in Country A (OFI) converts the amount to a stablecoin and sends it to the receiving financial institution in Country B (BFI). The financial institution in Country B can either deliver the stablecoin directly to the final recipient or convert it to local currency. Through this method, cross-border payment and settlement times, which typically took 2-5 business days via the SWIFT network, can be reduced to near real-time. Domestic financial institutions are essential for expanding the CPN system. A financial industry official said, "Circle appears to be expanding its political network with an eye on regulating stablecoin-related overseas remittances".
- Reporters Shin Jung-seop, Kim Jung-woo
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