USDC Stablecoin Settlement Launches in Latin American Banks
Financial institutions can now use USDC to reduce the 3% to 7% foreign exchange spreads common in cross-border treasury transactions.
Updated on Oct. 27, 2026 in Financial Services
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ACI Worldwide and Circle have launched a partnership to integrate USDC stablecoin settlement directly into Latin American banking systems. Financial institutions in the region can now use the ACI Connetic platform to facilitate cross-border transactions.
Why it matters
Traditional correspondent banking in Latin America faces foreign exchange spreads of 3% to 7% and multi-day clearing delays, driving demand for faster, lower-cost dollar-denominated settlement options. This integration bypasses legacy networks by leveraging cloud-native blockchain architecture.
Traditional cross-border payments in Latin America incur foreign exchange spreads of 3% to 7%. The current pilot program focuses on the Bre-B instant payments network in Colombia.
The players
ACI Worldwide
A global provider of real-time electronic payment and banking software solutions.
Circle
A financial technology company that issues the USDC stablecoin and manages its associated reserves.
The details
The ACI Connetic platform functions as a bridge, allowing financial institutions to trigger USDC settlement through their existing treasury and compliance interfaces. By utilizing a public blockchain as the settlement layer, the system maintains 1:1 reserve backing with U.S. Treasury bills and overnight cash repos. The integration incorporates ISO 20022 messaging standards and automated anti-money laundering screening to ensure regulatory compliance.
Timeline
October 27, 2026: The partnership between ACI Worldwide and Circle was announced.
Market Landscape
This integration aligns with the broader financial industry shift toward adopting ISO 20022 messaging standards to improve cross-border payment interoperability. It follows a trend of using cloud-native platforms to reduce the friction associated with traditional multi-day clearing cycles.
Financial operators should monitor how this cloud-native settlement layer impacts liquidity costs compared to legacy correspondent banking. Organizations operating in Colombia, Mexico, Brazil, Peru, and Chile should evaluate the potential for reduced FX spreads in their treasury operations.
The takeaway
The move signals a shift toward utilizing stablecoins to mitigate local currency volatility and capital control issues in emerging markets. Treasury managers should track the expansion of this pilot into Mexico and Brazil as a potential benchmark for lower-cost, high-speed cross-border settlement.
Further reading
For more on evolving payment infrastructure, visit our Financial Services section.
Source note: This article includes information reported by BTC Wires.
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Should traditional banks integrate regulated stablecoins to facilitate faster cross-border payments?
