According to Circle, the current cross -border payment system is “opaque and slow.”
Companies are already using this new network to send USDC from Latin America to Asia.
On May 21, 2025, Circle, the company behind the USDC Stablinin, announced the launch of the main network (Mainnet) of its Circle Payments Network (CPN).
This initiative It seeks to transform the panorama of cross -border payments, a market valued in 190 billion dollars, according to Circle, and remains “fragmented, opaque and slow.” The CPN network, based on technology Blockchainpromises speed up international transactions Through the use of regulated stablcoins such as USDC, offering paid banks and suppliers a global software.
A solution for a fragmented system?
Traditional systems, such as the swift network of correspondent banks, usually involve intermediaries, which delays liquidation processes up to several days and raises costs, which can exceed 6% of the transferred valueaccording to data from the World Bank relieved by the Circle team. In that context, and according to the company’s announcement behind USDC, cross -border payments, which involve money transfers between countries, face structural challenges.
The Circle Payments Network network aims to be an answer to those limitations. It works as a Blockchain -based coordination protocola technology that records transactions in a decentralized and transparent digital accounting book.
This protocol would allow financial institutions to exchange payment instructions safely and liquidate real -time transactions using USDC, a stablcoin backed 1: 1 for US dollars. Unlike traditional systems, which operate at limited bank schedules, CPN is designed to always be active, operating 24 hours a day, 7 days a week.
How does the CPN network work?
Financial institutions, payment services suppliers or digital asset platforms are connected to the network as “original financial institutions” (OFI) or “beneficiaries” (BFIS).
For example, a company in Mexico that wishes to pay a supplier in Germany can use CPN to convert Mexican weights to USDC through an OFI. The network identifies the best route for the transaction, connects with a BFI in Germany, which converts the USDC to euros for the supplier. This process would eliminate waiting days and associated costs To traditional intermediaries.
To execute these payments, the participating financial institutions “choose their preferred cryptocurrency networks”, while CPN coordinates the transactions between the chain of origin and destination by making the liquidation, using the transfer protocol between circle chains (CCTP version 2).
Initially, the RED supports a limited number of networks, with expansion plans according to the preferences of its members. However, and although the White paper of the CPN does not specify which networks are the ones that supports, since the CCTP protocol of Circle operates with Networks compatible with the Ethereum virtual machine (EVM) It can be estimated that all those same networks are those that institutions interested in CPN can use.
CPN CPN Use Cases
The CPN network is presented as an adequate option for a wide range of applications. From payments between companies (B2B), such as those made to suppliers, to cross -border remittances, through business treasury operations, recurrent payments and mass disbursements, such as payrolls, according to Circle.
Among the first participants in the Mainnet CPN are Alfred Pay, Tazapay, Conduit and Redotpay, companies that operate in regions such as Latin America and Asia. These platforms They are opening USDC -based payment corridorsfacilitating transactions in markets with high demand for rapid and transparent financial solutions.
For example, Redotpay allows cross -border payments from Brazil, while Conduit supports B2B flows from the United States and Europe to Mexico. Circle plans to expand the network throughout 2025, including regions such as Nigeria, the European Union, the United Kingdom, Colombia, India, United Arab Emirates, China, Turkey, Philippines, Vietnam and Argentina.
