FIS partners with Circle to offer bank stablecoin payments

Bank technology provider Fidelity National Information Services Inc. is partnering with Circle Internet Group Inc. to offer financial institutions the ability to conduct transactions using Circle’s stablecoin.  

The companies aim to help US banks offer their customers the option to make domestic and cross-border payments using Circle’s USDC, a cryptocurrency intended to track the value of a dollar one-for-one that’s backed by short-term US Treasuries and cash. FIS is integrating the token into its money movement hub, a service designed to help financial institutions connect with multiple payment networks. The service is expected to go live before the end of the year. Circle earlier this year launched a payments partner network to help scale USDC.

“This time its no longer a fringe thing, it’s becoming foundational to all parts of financial services,” Himal Makwana, global head of corporate strategy at Jacksonville, Florida-based FIS, said in an interview. Stablecoins are “much more mature and grounded in actually solving client-end problems.” 

The partnership provides Circle with a potential distribution channel of thousands of financial institutions that leveraging the company’s technology. FIS processes more than $10 trillion in transactions a year. Circle’s status as a publicly-traded company was a key feature, Makwana noted. 

“This is one example of a partnership we have in place that can enable us to drive growth and distribution of USDC,” Kash Razzaghi, chief business officer at New York-based Circle, said in an interview. “A lot of these companies view FIS as a strategic partner helping them navigate this new world of digital payments and stablecoin. That’s another added benefit is that FIS has a lot of credibility when it comes to their customers and what they recommend.” 

The integration follows landmark US stablecoin legislation that many crypto proponents expect to usher in a wave of adoption. Last month, FIS rival Fiserv Inc. announced plans to launch its own stablecoin, FIUSD. Fiserv also plans to work with Circle.