Circle (CRCL), the company behind the $70 billion USDC token, is rolling out a new stablecoin-powered foreign exchange engine that aims to modernize how institutions trade currencies by settling transactions on-chain, around-the-clock with reduced counterparty risk.
The service, dubbed StableFX, has gone live on testnet through Arc, Circle’s own layer-1 blockchain built to support programmable settlement and real-world economic activity, the company said in a Thursday blog post.
Foreign exchange is one of the largest financial markets in the world, with over $9 trillion traded daily according to a BIS report. Still, much of it the flows rely on outdated systems that require pre-funded accounts and settle trades on a delay. Stablecoins could process $1 trillion in annual payment volumes by 2030, with cross-border transfers and onchain FX flagged as major areas of disruption, a recent report from trading firm Keyrock and crypto exchange Bitso predicted.
Circle’s StableFX aims to remove that friction by settling transactions entirely onchain and reducing settlement risk.
The platform lets verified institutional users trade stablecoin-denominated currency pairs using real-time settlement and Request-for-Quote (RFQ) pricing across multiple liquidity providers.
Circle is also rolling out a companion program called Circle Partner Stablecoins to support non-dollar stablecoins on Arc. Initial participants include regional stablecoin issuers such as Avenia (BRLA), Juno (MXNB) and Stablecorp (QCAD), expanding the range of currency pairs available on StableFX.
Read more: Circle Q3 Profit Triples, Beating Estimates, on USDC Growth
