Stablecoin issuer Circle has awarded a grant to support the United Nations’ push to modernize its internal payment systems, aiming to make humanitarian aid transfers faster, cheaper and more transparent.
Key Takeaways:
- Circle is funding a UN initiative to modernize humanitarian payments using stablecoin-based infrastructure.
- The grant builds on earlier USDC aid programs, including payments to Ukrainians displaced by war in 2022.
- UN officials say blockchain payments could reduce costs, delays and inefficiencies tied to legacy financial systems.
The grant was announced Wednesday at the World Economic Forum in Davos, Switzerland. Circle did not disclose the size 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 how money moves across the UN’s global operations.
Circle Expands UN Stablecoin Aid Efforts
The initiative builds on earlier cooperation between Circle and the United Nations.
In 2022, Circle partnered with the UN Refugee Agency and DHoTS to facilitate USDC stablecoin payments to Ukrainians displaced by the war, marking one of the first large-scale uses of stablecoins in humanitarian aid distribution.
UN Development Programme administrator Alexander De Croo said digital payments could help stretch limited resources further at a time when humanitarian budgets are under strain.
“Stablecoin payments allow us to make every dollar work harder,” he said, pointing to inefficiencies tied to legacy banking infrastructure.
According to Circle, roughly $38 billion in humanitarian funding flows through outdated financial rails each year, often resulting in delays, high transaction fees and limited transparency.
Digital financial infrastructure, including blockchain-based payments, could help address those issues while improving accountability.
UN High Commissioner for Refugees Barham Salih said the use of new technology was about more than efficiency.
“This is about using technology to uphold dignity and choice for people forced to flee, while maximizing impact for every dollar entrusted to us,” he said.
The grant comes shortly after Circle launched the Circle Foundation in December, a philanthropic arm focused on financial inclusion and resilience.
Supporting public-sector use cases for stablecoins appears to be an early priority.
Stablecoins are playing an increasingly prominent role in global payments. The sector has grown into a $312.7 billion market, with tokens widely used for remittances, business 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 core 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 Premier David Burt outlined a model that would integrate digital assets into everyday payments, financial services and government operations.
The push reflects long-standing challenges faced by the island’s economy, including high transaction fees, limited banking access and slow settlement times caused by global bank de-risking.
By using dollar-denominated stablecoins and blockchain-based settlement, Bermuda aims to bypass traditional correspondent banking networks and reduce costs for businesses, particularly small and medium-sized firms.
The rollout will begin with a pilot using Circle’s USDC stablecoin and Coinbase’s Base infrastructure, focusing on government and commercial payments, tokenization tools for financial institutions and nationwide digital literacy programs.
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