Circle, the company behind the USDC stablecoin, has launched the Circle Payments Network (CPN), a new cross-border payment system designed to compete with Ripple’s XRP-based RippleNet. This move aims to transform how international payments are made by offering faster, cheaper, and more transparent transactions.
What Is Circle Payments Network?
CPN connects banks, neo-banks, payment providers, and digital wallets to enable real-time settlement of cross-border payments. It uses regulated stablecoins like USDC and EURC to speed up transactions and reduce costs.
Traditional cross-border payments often take more than one business day and can cost over 6% in fees. CPN settles payments instantly on blockchain networks such as Ethereum, cutting both time and expense.
How Does CPN Compare to RippleNet?
| Feature | Circle Payments Network (CPN) | RippleNet (XRP-based) |
| Stablecoin Used | USDC ($61 billion market cap) | RLUSD (smaller market cap) |
| Blockchain Platform | Ethereum and other blockchains | XRP Ledger (XRPL) |
| Partnerships | 500+ including Santander, Deutsche Bank | Thousands |
| Regulatory Status | Strong compliance, no SEC lawsuits | Won multi-year SEC lawsuit |
| APIs & Customization | Highly customizable with advanced APIs | Less customizable |
| 24h Market Volume | $9.8 billion USDC volume | $55 million RLUSD volume |
| Geographic Focus | Early adoption in Latin America | Global presence |
Circle leverages USDC’s large market cap and strong compliance to offer a more flexible and transparent alternative to RippleNet.
Early Adoption and Use Cases
Latin America is the first major region to adopt CPN. Partners like Alfred Pay enable payouts in Brazil and Mexico, while RedotPay facilitates USDC inflows into Brazil. Platforms such as Conduit and Tazapay support payments into Mexico and Asia.
CPN supports various payments: supplier invoices, remittances, payroll, capital markets settlements, treasury operations, and on-chain financial applications.
Regulatory and Market Context
Circle maintains a robust compliance framework, including licensing, anti-money laundering (AML), and cybersecurity measures. Unlike Ripple, Circle has avoided SEC lawsuits, providing regulatory clarity.
The launch of CPN aligns with Circle’s plans to go public in the U.S., signaling its ambition to become a major player in global payments.
Key Takeaways
- Circle Payments Network uses USDC to offer faster, cheaper cross-border payments.
- It competes with RippleNet by providing better APIs and regulatory compliance.
- Latin America is the first region to adopt CPN at scale.
- The network supports multiple payment types with real-time settlement.
FAQs
Q: What stablecoins does CPN use?
- A: USDC, EURC, and other regulated stablecoins.
Q: How is CPN different from RippleNet?
- A: CPN offers better customization, uses USDC with a larger market cap, and focuses on regulatory compliance.
Q: Where is CPN gaining traction?
- A: Latin America, especially Brazil and Mexico.
Q: Is Circle compliant with regulators?
- A: Yes, Circle has strong compliance and no SEC lawsuits.
Q: What payments does CPN support?
- A: Supplier payments, remittances, payroll, capital markets, treasury, and on-chain financial apps.
