Circle Tackles Foreign Exchange With StableFX

Circle has revealed its plans to tackle the foreign exchange market with StableFX.

StableFX is defined as a an institutional-grade engine for onchain FX, which combines Cirrcle Partner Stablecoins to enroll international issuers for various fiat currency stablecoins. The main aim is to unify onchain liquidity for these different stablecoins and have it run on Arc, their new layer 1 blockchain. The partners Circle wants to onboard are:

The first anticipated Circle Partner Stablecoins participants include Avenia (BRLA), Beyond Digital Asset Custody Services (KRW1), Coins.ph (PHPC), Forte (AUDF), Juno (MXNB), JYPC (JYPC), Stablecorp (QCAD), and the ZAR Universal Network (ZARU), with initial collaborations underway. Together with StableFX and Arc, these stablecoins enable onchain FX trading and real-time settlement across supported currencies.

After payments and tokenisation of real world assets, the next opportunity lies within providing alternative solutions for trading and settling in sovereign currencies, such as CLS (Continuous Linked Settlement), which is currently limited to only 18 currencies. The global FX market has different fee structures for participants in retail and wholesale agreements.