Ripple faces major challengers as Circle enters the payment arena

Circle unveiled the Circle Payment Network (CPN) decision on April 21, laying the foundation for the first face-to-face competition between the fully retained stable asset management railway and Ripple’s decade-long ripple payments (formerly on demand liquidity-ODL) products.

Circle enters the payment field

Circle announced in an article on X that CPN is “a simplified way for financial institutions to connect, carefully orchestrate the global monetary movement, powered by stable 24/7 real-time settlements such as USDC and Eurc.” The company promises programmability, ongoing availability and “Internet Speed” settlements for four initial verticals (Internet -Speed” settlements (Intern -Speed) (Intern -Speed) (Intern -Speed, Remittance, Ministry of Finance and Payroll) and says more than 20 institutions have joined the design partners.

Although Circle has long issued the second largest dollar Stablecoin, it has so far avoided having the payment rail itself. CPN changed points. According to the newly issued white paper, CPN is “a new protocol layer in a comprehensive, open and internet settlement system, as well as USDC, EURC, and ultimately the core of other regulated payment stability stocks.”

The governance stack places circles in the role of operators, standards curtains and compliance gatekeepers, requiring each participating entity (participating financial institution or PFI) to meet strict licensing and AML/CFT standards before accessing the network.

On a technical level, the network starts life from the chain orchestration layer, which constructs the transmission of signatures to the public blockchain, but it has been mapped into a smart contract protocol with optional “revoke” window and chain FX routing. In its final form, a stable swap is envisaged, where liquidity discovery and settlement guarantees occur entirely on-chain, while a confidentiality function allows counterparties to mark transactions as private and selectively expose them to regulators or auditors.

For banks, payment processors and virtual asset service providers, commercial draws are clear. CPN levied three fees – payment fees, FX spreads and variable network fees – and promised to reinvest a portion of revenue in infrastructure upgrades and developer grants, seeding a market for value-added modules, from custody analysis to fraud analysis. Circle believes that the model “will align incentives across network members, end users, builders and service providers to encourage network growth and sustainability.”

Circles and corrugations

The overlap with the ripple is direct and visible. Among the first wave of partners, Alfred, Bvnk, Coinmena, Coinsph, Dlocal, Fomo Pay, Onafriq, WorldRemit, YellowCard and others are all payment corridors for corrugated payments.

Panos Mekras, co-founder of Anodos Finance, told his followers: “Well, that’s big. Circle just launched its direct Ripple competitor… The game has begun.” Community member Xoom responded to the view that “competition leads to more growth and innovation.”

Ian Lee, co-founder of the group Dao, proposed a clearer strategy: “This follows what Ripple and XRP should have done, but uses StableCoins. There are better opportunities to be adopted because it is more compatible with the business model of existing financial institutions.”

Community member Xoom (@MR_Xoom) commented: “It’s huge. The circle just announced CPN, a competitor to Ripple Payments (aka ODL). It’s fun to see the game. Competition brings more growth and innovation.”

At press time, XRP was trading at $2.09.

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