Secure Cross-Border Transaction Technologies

The architecture of cross-border payments is shifting — and it’s no longer just about speed. It’s about programmability, transparency, and compliance by design. Circle newly launched Payments Network (CPN) is not a minor enhancement to legacy systems — it’s a fundamentally different model. One where regulated stablecoins (USDC, EURC) act as digital cash, settlement is near-instant, and participants are governed by enforceable standards. How does CPN stand apart? • Value transfer, not just message exchange • Settlement finality in seconds, not days • No reliance on correspondent banking chains • Full transparency with on-chain audit trails • Compliance-embedded — KYC, AML, cybersecurity built into the network design It’s a network where every transaction is verifiable, programmable, and borderless — opening new possibilities for real-time treasury, trade, and payments innovation. As someone deeply engaged with ISO 20022, structured data, and the future of regulated payments infrastructure — this evolution is both timely and necessary. The question isn’t whether these networks will coexist. It’s whether traditional rails will keep pace with programmable money. Biju Nicolas Pinto Sam Boboev #payments #financialservices #swift #stablecoins #cbdc #treasury #iso20022 #blockchain

Project Nexus: Enabling instant #crossborder #payments leveraging the growing Instant Payment Systems across the World Cross-border payments are often slow, offering a frustrating user experience and imposing significant costs on individuals and businesses. In contrast, in over 60 countries today domestic payments reach their destination in seconds at near zero cost to the sender or recipient. This is thanks to the growing availability of #instantpaymentsystems (IPS). Cross-border payments could be significantly improved by linking up domestic IPS in multiple countries. In April 2021, Singapore 🇸🇬 and Thailand 🇹🇭 connected their IPS, allowing customers of participating financial institutions to send payments across the border using just the recipient’s phone number. This was followed in February 2023 by an IPS link between Singapore 🇸🇬 and India 🇮🇳 . Several initiatives in the Southeast Asian region and globally aim to do the same, through #bilateral links. However, connecting countries one-to-one soon becomes complex, since every IPS has different technical standards, business processes and #regulatory requirements. Each new #bilateral initiative requires a complex technical integration and multi-party legal negotiation. Nexus addresses these challenges by making it easier to interlink multiple instant payment systems on a #distributednetwork through a standardised and multilateral approach. Each IPS would need to invest time and resources to be able to connect to and communicate with Nexus, but this would be a one-time effort rather than being repeated every time they connect to a new country. The Nexus proof of concept demonstrates that connecting #IPS multilaterally is #technically feasible and could have significant potential benefits for individuals and businesses across the world. The project had to tackle a number of challenges. There are wide differences between the design of different IPS and their #proxy schemes, and it is not realistic to expect the industry to move to a single standardised design. Instead, it is important to find ways to accommodate those differences, both through tools that support technical interoperability, such as the #ISO20022 standard for message formats and APIs, as well as through methods to promote business interoperability, such as a cross-border scheme that gives IPS a clear #rulebook for their interactions with other IPS. One of the most challenging frictions in (instant) cross-border payments is sanctions screening. There is often a conflict (real or perceived) between the requirement to screen payers and payees using high-quality verified data, and the restrictions that data protection rules place on sharing these data. Nexus proposes a number of methods to improve this data sharing, so reducing the amount of manual processing. Read on to learn more about #ProjectNexus and what the next phase will entail Bank for International Settlements – BIS

Stop treating crypto as a separate strategy. The leading enterprise CFOs and treasury leaders are integrating blockchain as core financial infrastructure Traditional remittance costs average 6.5% per transaction, while Stablecoin transfers cost under 1% - representing 85% cost reduction for multinational operations. Settlement time comparisons prove even more compelling: → Traditional cross-border payments: 3-5 business days → Stablecoin settlements: 10-30 seconds Major institutions have already implemented this infrastructure: → JPMorgan processes billions monthly through JPM Coin, with transactions on their Onyx platform reducing settlement times by over 90% → PayPal launched PYUSD, now integrated into 430 million active accounts globally → Visa collaborates with Circle to use USDC for blockchain settlement, processing $3 billion in stablecoin payments in 2024 For treasury management, the advantages compound: → 24/7 liquidity across borders without banking hours or holidays → Elimination of pre-funding requirements in destination currencies → Direct settlement between parties without correspondent bank fees → Reduction in currency conversion costs Blockchain adoption for financial infrastructure continues accelerating. Stablecoin market cap reached $200B in 2024, with projections of $1.1T by 2035 according to Megatech Insights (17.8% CAGR) Implement this infrastructure through regulated partners like Circle (USDC), Paxos (supporting PYUSD), or JPMorgan's Onyx platform. Start with specific use cases in treasury operations or cross-border payments where ROI proves immediate and measurable The companies gaining competitive advantages now will maintain multi-year leads over those still deliberating

#blockchain | #cbdcs | #payments : The Practicalities of #crossborderpayments in a Faster Payments World. Changes in the World of Cross-Border Payments : (1) • Distributed Ledger Technologies (DLT) is a type of technology that enables the secure and transparent sharing of data across a distributed network. It is used to facilitate cross-border payments by providing a secure and transparent platform for the transfer of funds. There are several DLT projects being explored that can help reduce the cost and time associated with international payments, as well as reduce the risk of fraud and money laundering. Additionally, DLT can help to improve the accuracy and speed of payments, as well as provide greater transparency and traceability. Project Cedar Phase II x Ubin+ (Cedar x Ubin+)8 was a research project exploring potential improvements for multi-currency wholesale cross-border payments. The project examined whether wholesale central bank digital currencies (CBDC) developed using DLT could improve the efficiency and transparency of cross-border payments involving one or more vehicle currencies. This collaboration brought together Project Cedar of the Federal Reserve Bank of New York’s New York Innovation Center (NYIC), and Ubin+ of the Monetary Authority of Singapore (MAS). (2) • Application Programming Interfaces ( #apis ) are a set of tools and protocols that allow applications to communicate with each other. They are used to facilitate the transfer of data between applications, allowing them to exchange information and perform tasks. API's can be used to facilitate the transfer of funds cross-border allowing for the secure transfer of data between banking systems. APIs are equipped to facilitate faster and more efficient cross-border payments as they reduce manual intervention and support a timelier data exchange across the payment chain. Payment service providers, financial institutions, and other entities in the payments ecosystem use application programming interfaces (APIs) to enhance efficiency, facilitate automation and extend payment functionality. For cross-border payments, API harmonization has the potential to improve transaction times and reduce costs (e.g., those associated with industry-wide standards). (3) • Central Bank Digital Currencies (CBDCs) are digital versions of a country’s fiat currency, issued and regulated by the country’s central bank. CBDCs can be used for cross-border payments, allowing for faster, cheaper, and more secure payments than traditional methods. As of June 2023, the Atlantic Council was monitoring CBDC initiatives in 130 countries and currency unions. This represents 98 percent of the global GDP. In July of 2023, a BIS survey showed 93 percent of Central Banks working on Digital Currencies