FIS, the US fintech giant processing over $2 trillion in transactions annually across more than 100 countries, announced that its subsidiary, Wordplay, will be the first global merchant acquirer that allows its clients to settle payments directly through USDC, the stablecoin that pegs 1:1 to the US dollar.
CryptoCom, the Singapore-based cryptocurrency exchange, will act as a pilot customer for transactions settled in USDC with Wordplay.
The newly announced partnership has garnered support from Circle, the company that issues USDC, as Jeremy Allaire, co-founder, and CEO of Circle, said that integrating USDC with Wordplay is a great step for the stablecoin industry as a whole and that the partnership is “a glimpse into a future where value is exchanged frictionlessly.”
According to the release issued by FIS, companies will no longer be restricted by a fiat-only ecosystem in payments. Instead, clients can directly receive, hold, and transfer stablecoins for settling transactions.
Also, Worldpay will operate as a middle man, enabling both crypto firms and traditional businesses to build a “fit-for-purpose” settlement and treasury strategy. The partnership is expected to continually drive digital currency adoption in a variety of businesses.
As stated by Nabil Manji, SVP, Head of Crypto and Web3 at Worldpay from FIS, stablecoins, with the feature of price stability in contrast to the wild volatility typically associated with other cryptocurrencies, will further incentivize corporate innovation in payments and benefit the consumer ecosystem. Manji considers USDC as a stablecoin that is particularly popular among traditional merchants.
As an experienced firm in Card-to-Crypto processing, Worldpay provides services for 4 of the top 5 cryptocurrency exchanges and was recently honored as the Crypto Payment Service Provider of the Year by City AM, the release stated.
The regulatory pressure derived from the US Congressman who recently proposed a bill to require a high degree of transparency regarding the reserve status of stablecoins has not impeded the rapid adoption of stablecoins from the financial industry.
Circle continued to expand its partnerships with crypto-friendly institutions from the traditional financial sector.
Last month, Circle tapped BNY Mellon, one of the oldest banks in America, to be its reserve custodian, responsible for guarding its backing reserve for its issued stablecoins, now worth around $50 Billion. As of February 2022, Circle, valued at $9 Billion, aimed to go public by December this year.