dLocal (NASDAQ: DLO) a cross-border payment platform connecting global merchants to emerging markets, has integrated with Circle Payments Network (CPN), operated by Circle Technology Services, LLC, an affiliate of Circle Internet Group, Inc. (NYSE: CRCL), to enable seamless payouts across emerging markets. Supported by Circle’s payment stablecoins, USDC and EURC, CPN connects FIs to allow for real-time settlement of cross-border payments.
With dLocal’s infrastructure integrated, CPN participants are now able to disburse funds in various local currencies across emerging markets.
Despite fintech breakthroughs, cross-border payments are still costly and slow, burdening businesses in emerging markets.
The World Bank reports a “6.4% average cost to send $200, over twice the UN’s 3% target.”
dLocal’s CPN integration enhances fund flows and enables remittances and disbursements in emerging markets. dLocal’s expertise and extensive regional payment capabilities “provide CPN participants with reduced costs and a reliable user experience for recipients across emerging markets.”
Kash Razzaghi, Chief Business Officer at Circle said that a key driver in the development of Circle Payments Network was “creating a new layer for payments to reach emerging markets in a fast and cost-effective way,”
Razzaghi added that dLocal’s payout offerings throughout emerging markets are vital to “delivering on this promise and creating a more open, digital financial system.”
John O’Brien, Chief Revenue Officer at dLocal said “that this alliance marks a milestone in connecting global stablecoin liquidity with local payment ecosystems.”
O-Brien also mentioned that by leveraging dLocal’s extensive presence across emerging markets, it enables FIs and fintechs “to operate more efficiently, reduce costs, and deliver a better experience for businesses sending funds in these high-growth economies.”
As noted in the update, dLocal enables domestic payments in emerging markets, connecting enterprise merchants with emerging market consumers across APAC, the Middle East, other regions.
Via the “One dLocal” concept (one direct API, one platform, and one contract), global companies can “accept payments, send payouts, and settle funds globally—without the need to manage separate processors or set up local entities.”
As covered, Circle Technology Services, LLC (CTS) is the operator of Circle Payments Network (CPN) and offers “products and services to financial institutions that participate in CPN to facilitate their CPN access and integration.”
CPN connects participating FIs with CTS serving “as the technology service provider to participating financial institutions.”
While CTS does not hold funds or manage accounts on behalf of customers, they do enable the ecosystem of participating FIs to connect “with each other, communicate securely, and settle directly with each other.”
CTS is not a party to transactions between participating FIs facilitated by CPN who use CPN to execute transactions “at their own risk.” Use of CPN is subject to the CPN Rules and the CPN Participation Agreement “between CTS and a participating financial institution.”