USDStablecoin payments push accelerates with new products, funding talks, forecasts
Circle launches managed USDC payments service for institutions
TL;DR
- Circle launched CPN Managed Payments to let banks, fintechs, and payment firms use stablecoin rails without holding USDC.
- Circle said USDC has supported more than $70 trillion in cumulative onchain settlement, including nearly $12 trillion in Q4 2025.
- Polygon Labs is reportedly seeking up to $100 million for a payments unit as Chainalysis projects stablecoin volume could reach $1.5 quadrillion annually by 2035.
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Circle has launched CPN Managed Payments, a new service that lets payment service providers, fintechs, and banks use stablecoin-based payment infrastructure while interacting only in fiat, as the company expands its institutional payments push and broader industry activity points to a growing race to build stablecoin payment rails.
Circle said the platform “abstracts digital asset complexity, enabling partners to interact solely in fiat while Circle manages the entire digital asset lifecycle.” Under the service, Circle handles minting and burning, settlement and compliance, allowing clients to use blockchain-based payment rails without holding USDC directly.
Nikhil Chandhok, Circle’s Chief Product and Technology Officer, said, “With CPN Managed Payments, we’re simplifying how institutions adopt and scale stablecoin payments.” Circle tied the launch to its broader effort to expand its distribution network among financial institutions seeking more efficient cross-border settlements and lower foreign exchange expenses. The company’s USDC token was described as the world’s second-largest stablecoin behind Tether’s USDT.
Chloé Mayenobe, deputy CEO of Singapore-based cross-border payments fintech Thunes, said, “Expanding our partnership with Circle and working with them on Managed Payments allows us to seamlessly bridge traditional banks, mobile wallets, and digital assets.” Her statement positioned the product as a link between conventional financial channels and digital asset infrastructure.
Circle also said USDC has supported more than $70 trillion in cumulative onchain settlement. Nearly $12 trillion of that amount came in Q4 2025, giving the company a large existing settlement base as it pushes deeper into institution-facing payment services.
Polygon expands beyond blockchain infrastructure
Polygon Labs is reportedly in early-stage talks with investors to raise up to $100 million for the launch and expansion of a dedicated stablecoin payments business. Specific investors and exact valuation details were not disclosed.
The planned unit is aimed at increasing the volume of stablecoin transactions settled directly on Polygon’s Layer-2 network through its own crypto payment infrastructure. That marks a shift beyond Polygon’s traditional role as a core blockchain developer and into the more heavily scrutinized payments business.
The groundwork for that push was laid in January 2026, when Polygon Labs entered into strategic agreements with Coinme, described as a cryptocurrency exchange and ATM provider, and Sequence, described as a Web3 development platform. Combined with the proposed raise, those partnerships position Polygon to move from a blockchain provider toward a full-stack payments processor and into more direct competition with traditional fintech firms such as Stripe.
Polygon also activated the “Giugliano” hardfork on mainnet earlier this month.
Chainalysis projects sharp rise in stablecoin payment activity
Chainalysis said stablecoins are moving from niche settlement tools toward a central role in global payments, with annual stablecoin transaction volume projected to reach as high as $1.5 quadrillion by 2035. The firm said baseline growth alone would take adjusted stablecoin volume to $719 trillion by that year, with macro catalysts and merchant adoption pushing the ceiling much higher.
The firm said stablecoins processed roughly $28 trillion in “real economic activity” in 2025. That figure excluded trading noise and focused on payments, remittances and settlement, according to Chainalysis.
Chainalysis said two main catalysts could drive the next phase of growth. The first is generational: between 2028 and 2048, as much as $100 trillion is expected to move from older cohorts to Millennials and Gen Z, groups the firm described as more comfortable holding and transacting in digital assets.
The second catalyst is distribution. Chainalysis said deeper integration into merchant checkout systems and backend payment infrastructure could make stablecoin use effectively invisible to end users, turning crypto-based payments into something that feels like a standard transaction rather than a separate choice. The firm also said AI-driven commerce may play a role in that shift.
Chainalysis said those changes could push stablecoin payment volumes to parity with Visa and Mastercard sometime between 2031 and 2039, or sooner if adoption accelerates.
Evidence of that broader transition was also reflected in corporate activity cited alongside the forecast. Stripe’s acquisition of Bridge and Mastercard’s acquisition of BVNK were presented as signs that stablecoins are becoming part of core payments infrastructure rather than remaining an edge-case product.
Standard Chartered said stablecoin usage is rising faster than expected as new use cases emerge. The bank also said stablecoins could drive up to $1 trillion in demand for U.S. Treasuries, linking payment growth to broader capital flows.
A White House study published this week found limited evidence that stablecoin yields would materially harm bank lending, pushing back on concerns about deposit flight as the regulatory framework evolves. Trump’s crypto advisor also said stablecoins could channel deposits into the U.S. banking system, not away from it, depending on how issuance and reserves are structured.
FAQ
What is CPN Managed Payments?
A Circle service that lets institutions use stablecoin rails while interacting only in fiat.
What does Circle manage for clients?
Minting and burning, settlement, and compliance.
What is Polygon Labs trying to raise?
Up to $100 million for a dedicated stablecoin payments business.
What did Chainalysis project for 2035?
Stablecoin transaction volume could reach as high as $1.5 quadrillion annually.
This article has been refined and enhanced by ChatGPT.
