In a significant move towards increasing interoperability in the cryptocurrency space, seven leading blockchain companies have announced the formation of the Blockchain Payments Consortium (BPC). The partnership aims to standardize cross-chain stablecoin transfers, streamline blockchain-based payments, and address the surge in remittance volumes beyond traditional payment giants. As the industry matures, these efforts are likely to accelerate adoption and facilitate more seamless integration between the blockchain ecosystem and traditional finance.
- Seven prominent cryptocurrency companies have launched a blockchain payments consortium to develop cross-chain transfer standards.
- Stablecoin transfers have reached more than $3.7 trillion in recent months, surpassing the combined total of Visa and Mastercard transfers in 2024.
- BPC aims to facilitate faster, lower-cost cross-border transactions in collaboration with regulators.
- Industry leaders see this partnership as an important step towards maturing the crypto market and increasing interoperability.
Seven leading crypto companies have announced a collaboration to create the Blockchain Payments Consortium (BPC), a strategic initiative to establish common standards for cross-chain stablecoin transfers. The initiative comes amid a year of rapid growth in crypto transfers, with recent data showing stablecoin transaction value has exceeded $3.7 trillion in the past 30 days and is on track to surpass traditional payment networks such as Visa and Mastercard by 2024.
Participating organizations Fireblocks, Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs, and Monad Foundation aim to develop a comprehensive framework that combines blockchain technology with data requirements typical of traditional payments. The move is seen as an important step to address fragmentation in transitioning between traditional and blockchain-based financial systems and improve the overall user experience.
BPC’s vision is to enable faster and more affordable cross-border payments and remittances and foster deeper integration between the blockchain ecosystem and the traditional financial sector. It also aims to establish a compliant, interoperable framework that can serve financial institutions, corporations, and other organizations that want to operate seamlessly across borders.
According to the consortium’s manifesto, the initiative aims to act as a bridge between the blockchain community, regulators and traditional financial institutions, fostering cross-jurisdictional cooperation and consistent compliance. The goal is to reduce friction, foster widespread adoption, and unlock the full potential of blockchain rails in the global payments landscape.
Framework hopes to drive adoption
Stellar Development Foundation Chief Business Officer, Raja Chakravorti, described the partnership as “an important step towards maturing the industry” and emphasized the importance of standardization amid rapid growth. Fireblocks echoed this sentiment, highlighting that the lack of a common language for blockchain payments is leading to fragmentation and missed opportunities. Ran Goldy, Senior Vice President of Payments at Fireblocks, emphasized that although industry adoption is increasing, continued collaboration is essential to realize the full potential of crypto-based payments.
The joint efforts of these companies mark an important milestone towards the maturity of the cryptocurrency market and demonstrate a move towards increased interoperability and reduced fragmentation. As regulatory clarity improves and blockchain adoption accelerates, initiatives like BPC could play a pivotal role in shaping the future of digital payments.