Circle And Paxos Unveil Plans For Next-Gen Verification Of Crypto Transactions

Circle (CRCL) and Paxos, are leading a new initiative aimed at enhancing the verification of crypto holdings. According to a Bloomberg report, the firms have partnered with Bluprynt, a fintech startup founded by Chris Brummer, to pilot a new approach that leverages cryptography and blockchain technology. 

Enhanced Transparency In Stablecoin Market?

The pilot program is said to utilize Bluprynt’s technology to trace each token back to its verified issuer, thereby enhancing transparency in the stablecoin market in line with the recent legislations that aim to provide a new regulatory framework for dollar-pegged cryptocurrencies. 

Brummer emphasized that this technology provides “provenance upfront,” which not only simplifies the verification process but also offers essential transparency for regulators and investors alike. 

He noted that such advancements could significantly mitigate risks associated with counterfeit tokens and impersonation attacks, which have become increasingly prevalent in the digital asset space.

Per the report, the introduction of this verification technology could be advantageous for auditors, regulators, and investors, as it addresses the distinct security risks identified by firms like Chainalysis, which highlighted impersonation and fake stablecoins as common threats in a recent report.

Mastercard And Circle Launch First Stablecoin Settlement

In a related development, Mastercard has announced an expansion of its partnership with Circle to enable the settlement of USDC and EURC transactions for acquirers in the Eastern Europe, Middle East, and Africa (EEMEA) regions. 

This initiative marks a milestone, as it is the first time the acquiring ecosystem in these regions will be able to settle transactions using dollar-pegged cryptocurrencies. 

In its press release, Mastercard disclosed that acquiring institutions will be able to receive settlements in fully-reserved stablecoins issued by regulated Circle affiliates.

Dimitrios Dosis, president of Mastercard for the EEMEA region, highlighted the strategic importance of this move by stating that the company aims to integrate stablecoins into the mainstream financial landscape. 

Kash Razzaghi, Chief Business Officer at Circle, echoed these sentiments, asserting that expanding USDC settlement across Mastercard’s extensive network represents a pivotal shift toward borderless, real-time commerce. 

Additionally, Mastercard is actively exploring broader use cases for regulated stablecoins in areas such as remittances, business-to-business (B2B) transactions, and payouts to gig workers and creators through platforms like Mastercard Move and the Multi-Token Network (MTN). 

As of this writing, Circle’s recently debuted stock, traded under the ticker symbol CRCL, is selling for $127 per share. For the first three weeks, the firm’s shares traded up, reaching a record high of $298. Since then, the firm’s valuation has dropped by nearly 58%.

Featured image from DALL-E, chart from TradingView.com