USDC collaborates with licensed payment institutions: Can stablecoin cross-border payments truly break geographical barriers?

【ChainNews】Circle and Lianlian International’s collaboration this time mainly focuses on two core points—how to make stablecoin payments faster and more transparent, and whether it can truly connect traditional payments with on-chain settlement.

From the content of the memorandum of understanding, both parties have a clear approach. On one hand, they seek opportunities in emerging markets like Asia, where the demand for efficient, low-cost cross-border payments is most urgent; on the other hand, through the Circle Payments Network and the L1 chain Arc, they explore seamless integration between traditional financial systems and blockchain settlement.

In simple terms, this is leveraging the liquidity advantage of USDC, combined with licensed institutions’ compliance DNA, to unlock markets troubled by the inefficiencies of traditional payment networks. Scenarios like Asian merchants, cross-border e-commerce, and supply chain financing have long been troubled by high foreign exchange fees and slow clearing times. If stablecoin solutions can truly be implemented, there is significant room for improvement.

However, reality also needs to be clear—while the involvement of licensed institutions indeed adds a compliance shield, for stablecoins to truly shake up the existing payment system, they still face hurdles like user habits, regulatory attitudes, and liquidity depth. This collaboration is worth following, but we shouldn’t be overly optimistic.