Circle Challenges Ripple with USDC Network for Cross-Border Payments

  • Circle launches its USDC-based Payments Network, directly competing with Ripple‘s XRP-based RippleNet in the cross-border payments market.
  • Both companies target the $913 billion global remittance market, promising lower fees and faster settlements than traditional banking systems.
  • Circle’s USDC has significantly larger trading volume at $9.8 billion compared to Ripple’s RLUSD at $55 million, though both claim extensive financial partnerships.

Circle has launched its Circle Payments Network utilizing USDC for cross-border transactions, positioning itself as a direct competitor to Ripple’s RippleNet which uses XRP for similar services. Both crypto giants are vying for dominance in global payment settlement rails, focusing on transferring USD value between banks using blockchain technology.

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Circle brings its $61 billion USDC stablecoin to the competition, while Ripple counters with its smaller but compliant RLUSD. According to market data, USDC’s 24-hour trading volume stands at approximately $9.8 billion, dwarfing RLUSD’s $55 million – a difference of 99.4%.

In its recent announcement, Circle echoed Ripple’s longstanding complaints about traditional cross-border payments, noting they typically "take longer than one business day to settle and cost more than 6%." Both companies emphasize how their crypto solutions can reduce fees, improve payment efficiency, and better serve emerging markets.

Battle for Banking Partnerships

Despite being the newer entrant, Circle has secured partnerships with major financial institutions including Santander, Deutsche Bank, Société Générale, and Standard Chartered. The company reports relationships with over 500 financial allies, while Ripple claims connections with thousands of partners.

Both companies emphasize regulatory compliance across global jurisdictions. Ripple highlights its victory against the Securities and Exchange Commission (SEC), while Circle notes it has avoided SEC litigation entirely. The competitors also promote their 24/7 operational capabilities, addressing limitations of traditional banking hours.

Targeting the $913 Billion Remittance Market

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Circle and Ripple both cite World Bank estimates that place the global remittance market at approximately $913 billion in 2024. Each company positions its technology as the solution to lower fees and improve efficiency in this massive market.

Circle’s Payments Network will utilize regulated stablecoins including USDC and EURC on established blockchains like Ethereum. The company advertises enhanced customization options through improved APIs and technical infrastructure compared to Ripple’s XRP-based solutions.

While Ripple has a longer history in the cross-border payments space, having worked with financial institutions for years, Circle is confident its technology can compete effectively despite its comparative youth in the market.

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