Proof of Concept for USDC Settlement in Colombia
Circle and ACI Worldwide have announced a proof of concept for USDC settlement in Colombia, aimed at demonstrating how financial institutions can utilize dollar-based stablecoins within their existing banking and payment operations. According to the companies’ announcement on October 27, the project will combine Circle’s USDC infrastructure with ACI Connetic, a cloud-based platform that handles transactions across various payment systems.
Project Overview
Colombia will serve as the initial market benefiting from ACI’s existing role in the country’s Bre-B instant payments network. The collaboration is still in an exploratory phase, with neither company announcing an active USDC settlement connection to Bre-B, identifying participating banks, or providing a launch date for commercial transactions.
The planned implementation will explore how banks can incorporate stablecoin settlement into the processes they already use for payments, treasury management, and transaction monitoring. ACI Connetic brings together conventional payment methods, card transactions, and digital assets through a single platform.
Integration with Existing Systems
Instead of requiring financial institutions to replace their current systems, the companies intend to demonstrate how USDC settlement can coexist with established payment systems. Banks will be able to assess the technology within familiar operational structures while considering their governance and settlement requirements.
Financial institutions are increasingly looking at how stablecoins can fit into the payment systems they already use. A new proof of concept in Colombia will explore how USDC settlement can work alongside existing payment infrastructure.
“The conversation around stablecoins is moving from opportunity to practical application,”
said Craig Ramsey, ACI Worldwide’s global head of account-to-account payments. He described the collaboration as an opportunity to explore stablecoin settlement through infrastructure that banks already trust.
Market Interest and Infrastructure
Kash Razzaghi, Circle’s Chief Commercial Officer, noted that financial institutions across Latin America are increasingly interested in incorporating stablecoins into existing payment environments. He described the project as a way to explore USDC settlement while maintaining connections to traditional financial infrastructure.
Colombia was chosen because ACI developed the central infrastructure supporting Bre-B, the country’s interoperable instant payments ecosystem. The network enables account-to-account transfers between participating financial institutions using infrastructure established with Banco de la República, Colombia’s central bank.
Transaction Volume and Future Prospects
ACI’s responsibilities include the address catalog, round-the-clock clearing and settlement engine, and interoperability services connecting participating providers. Its existing technical involvement provides the company with experience in the country’s domestic payment arrangements. In March, ACI reported that Bre-B had processed over 500 million transactions in the first five months, demonstrating significant usage of the underlying national system.
The new collaboration has not reported any USDC transaction volume, settlement value, or customer activity. This distinction is important as the companies evaluate an additional settlement method without announcing that existing Bre-B transactions have moved to a blockchain.
Future Developments
Circle’s interest in Colombia follows its ongoing work with banks and payment providers seeking access to digital dollar settlement. In a recent expansion assessment, crypto.news reported on Circle’s plans to enter approximately 40 emerging and developing markets. CEO Jeremy Allaire identified Latin America among the regions where the company sees demand, although Circle has not disclosed individual launch plans or licensing arrangements for these markets.
Colombia already has other stablecoin-related financial products. MoneyGram introduced a Visa card in September that allows eligible customers to hold dollar-linked balances, use them through Visa, and access local cash payouts. The MoneyGram offering pertains to consumer payments, while the Circle-ACI project focuses on how financial institutions can organize settlement within existing banking systems.
Meanwhile, Circle’s bank-led USDC services with Standard Chartered have provided eligible institutions access to digital dollar storage and transfers through established financial channels. ACI Connetic supports multiple payment networks and digital asset providers, allowing financial institutions to evaluate various settlement methods through a single orchestration system.
Conclusion
The announcement does not identify which banks will participate in Colombia, whether USDC transactions will involve domestic or cross-border transfers, or how conversion between USDC and Colombian pesos will work. It does not specify whether settlement will occur directly on a public blockchain or through an intermediary arrangement, nor does it indicate expected transaction fees or processing times.
In comparison, an October study of stablecoin transfers documented differences in transaction costs and payout completion across countries and providers. Its reported findings pertained to existing services and cannot ascertain the economics of the proposed Colombian implementation.
Circle and ACI stated that the initiative will help institutions evaluate settlement arrangements that combine conventional payment networks with digital assets. Neither company announced a commercial implementation plan, committed transaction volumes, or named financial institutions participating in the proof of concept.
