Stablecoin issuer Circle has provided a grant to support the United Nations’ efforts to modernize its internal payment systems, with the aim of making humanitarian aid transfers faster, cheaper and more transparent.
Key points to remember:
- Circle is funding a United Nations initiative to modernize humanitarian payments using stablecoin-based infrastructure.
- The grant builds on previous USDC aid programs, including payments to war-displaced Ukrainians in 2022.
- UN officials say blockchain payments could reduce costs, delays and inefficiencies associated with existing financial systems.
The grant was announced Wednesday at the World Economic Forum in Davos, Switzerland. Circle did not disclose the amount or structure of the grant.
The Circle Foundation said the funding would support the UN’s Digital Hub of Treasury Solutions (DHoTS), a program focused on improving the way money flows across the UN’s global operations.
Circle Expands Stablecoin Aid Efforts at UN
The initiative builds on previous cooperation between Circle and the United Nations.
In 2022, Circle partnered with the United Nations Refugee Agency and DHoTS to facilitate USDC stablecoin payments to war-displaced Ukrainians, marking one of the first large-scale uses of stablecoins in humanitarian aid distribution.
United Nations Development Program Administrator Alexander De Croo said digital payments could help further optimize limited resources at a time when humanitarian budgets are under strain.
“Stable payments allow us to make every dollar work harder,” he said, pointing to inefficiencies related to existing banking infrastructure.
According to Circle, approximately $38 billion in humanitarian funding passes through outdated financial channels each year, often leading to delays, high transaction fees and limited transparency.
Digital financial infrastructure, including blockchain-based payments, could help address these issues while improving accountability.
UN High Commissioner for Refugees Barham Salih said the use of new technologies was about more than efficiency.
“It’s about using technology to preserve the dignity and choice of people forced to flee, while maximizing the impact of every dollar entrusted to us,” he said.
This grant comes shortly after Circle launched the Circle Foundation in December, a philanthropic arm focused on financial inclusion and resilience.
Supporting stablecoin use cases in the public sector appears to be a top priority.
Stablecoins are playing an increasingly important role in global payments. The sector has grown into a $312.7 billion market, with tokens widely used for remittances, trade settlements and savings in regions facing currency instability.
Bermuda Unveils Plan for Fully On-Chain Economy with Coinbase and Circle
As reported, Bermuda has announced plans to place blockchain infrastructure at the heart of its financial system, partnering with Coinbase and Circle to develop what officials describe as a fully on-chain economy.
The initiative was unveiled at the World Economic Forum in Davos, where Prime Minister David Burt presented a model that would integrate digital assets into everyday payments, financial services and government operations.
The move reflects long-standing challenges facing the island’s economy, including high transaction fees, limited access to banking services and slow settlement times caused by reduced banking risks globally.
Using dollar-denominated stablecoins and blockchain-based settlement, Bermuda aims to bypass traditional banking correspondent networks and reduce costs for businesses, particularly small and medium-sized businesses.
The rollout will begin with a pilot using Circle’s USDC stablecoin and Coinbase’s core infrastructure, focused on government and commercial payments, tokenization tools for financial institutions, and national digital literacy programs.
The article Circle Issues Grant to Fund UN Initiative to Streamline Humanitarian Aid Payments appeared first on Cryptonews.
