Banking Circle launches regulated fiat-to-stablecoin settlement after Luxembourg approval, enabling institutional flows across USDC, USDG, and EURI rails

Luxembourg-based correspondent bank Banking Circle has launched a regulated fiat-to-stablecoin and stablecoin-to-fiat settlement service after receiving a Crypto-Asset Service Provider (CASP) license from Luxembourg’s financial regulator, the CSSF, on 15 April 2026. The new service is integrated into Banking Circle’s core platform and initially supports USDC, USDG (a Paxos U.S. dollar stablecoin), and EURI, the bank’s own MiCA-compliant euro stablecoin first launched in August 2024. This allows institutional clients to move between traditional fiat bank accounts and these stablecoins with instant, 24/7 settlement and full regulatory traceability. The offering targets banks, payment companies, fintechs, and marketplaces that already use Banking Circle’s infrastructure to move and convert more than €1.5 trillion annually, providing them with a way to route cross-border payments over blockchain-based “stablecoin rails” while remaining inside a fully regulated banking environment. By combining the speed and continuous availability of stablecoin transactions with bank-level compliance, risk management, and transaction monitoring (including tools such as wallet and ecosystem screening used for EURI under the EU’s Markets in Crypto-Assets (MiCA) regime), the product is positioned as an answer to long-standing frictions and delays in traditional correspondent banking and global settlement. Strategically, the move places Banking Circle among a growing group of European and global institutions building regulated stablecoin settlement infrastructure under MiCA, with an emphasis on euro liquidity and compliant on/off-ramps for tokenized money. It also extends the bank’s prior work linking fiat accounts to USDC and other stablecoins, now under a formal CASP license that clarifies its regulatory status in the EU. For the broader market, the launch underscores how incumbent payments banks are using bank-issued and third-party stablecoins as a bridge between traditional rails and Web3-native payment networks, potentially influencing how cross-border treasury, merchant payments, and digital asset liquidity are managed by institutional players. "entities":["Banking Circle","Banking Circle S.A.","Commission de Surveillance du Secteur Financier (CSSF)","Crypto-Asset Service Provider (CASP) license","USDC","USDG","Paxos","EURI","Markets in Crypto-Assets Regulation (MiCA)","Circle","European Union"]}'}♀♀♀♀

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