Author: Will Awang, Web3 Xiaolu

In the article " Digital Dollars on the Internet Value - 2025 USDC Market Economy Report " released by Circle in early 2025 , the triple narrative of USDC was clarified: (1) the financial upgrade of the Internet; (2) the Internet network through the USDC; (3) the use of network effects to expand USDC application scenarios.

For Circle, which currently has a stablecoin share of 26%, it is obviously no longer satisfied with the first two narratives. The Circle Payments Network, which it just launched, is a globally compliant stablecoin issuer, and captures the value of USDC or stablecoins in the global network.

The US dollar and the Internet themselves have a strong network effect. In the real world and on the Internet, the US dollar is a currency with network effects. Blockchain technology has given USDC more powerful functions and new application potential than traditional US dollars, and is implemented based on traditional Internet networks.

Circle is building an open technology platform dominated by USDC. Based on the strong and extensive use of the US dollar today, it fully utilizes the scale, speed and cost advantages of the Internet to achieve similar network effects and practicality for financial services.

Circle Payments Network is a Circle that uses its strong compliance background to bring financial institutions (USDC services) together in a compliant, seamless and programmable framework to coordinate global payments for fiat, USDC and other payment stablecoins.

As a result, fiat currency no longer needs to be circulated through the old traditional SWIFT system, and the digital dollar that uses blockchain as the settlement layer will be its new path.

Essentially, Circle's payment network based on blockchain as the settlement layer is a funeral invitation to traditional payment channels such as SWIFT/VISA/Mastercard, allowing us to enter a huge era of change from mail to email, from carriage to tram, from transatlantic Atlantic cable telegraph to blockchain Internet value transmission.

( Web3 Payment 10,000-digit research report: The entire army of industry giants is expected to change the existing crypto market structure )

What is important is Circle's positioning for Circle Payments Network: a brand new protocol layer built on a comprehensive, open and Internet-based settlement system, with stablecoins at its core. This positioning can be compatible with each settlement layer public chain, rather than being trapped in the battle of public chain seizing financial infrastructure.

Dr. Xiao Feng from Hashkey provides the positioning of public chains based on the nature of finance: the new generation of financial infrastructure not only improves the existing system marginally, but also brings disruptive development from the aspects of transactions, clearing, settlement, etc., forming a new financial paradigm.

It is meaningful that Circle aims to build an open network based on blockchain, which already has the prototype of the VISA network. We may be able to find some answers to the subsequent evolution of VISA. This is in a sharp contrast with Ripple & RippleNet , Stripe & Bridge's relatively closed-loop network.

In October 2023, when I was sharing Web3 payment with Ant , I was thinking: Is it a better solution to put fiat currency assets on both ends and settle them through stablecoins? Obviously, a year and a half later, Circle gave clear answers, as well as distinct use cases.

Therefore, this article compiles Circle Payments Network Whitepaper to see its design principles, real-life use cases, potential future use cases and growth opportunities, and this governance model similar to VISA network organization.

1. Overview of the white paper

Stablecoins have long been considered to have the potential to become the basis for payments and capital flows above the Internet. However, it was not until recently that stablecoins, as digital cash (Digital Cash), were mainly used in the global digital asset market and in the decentralized finance (DeFi).

With the launch of Circle Payments Network (CPN), Circle is moving stablecoins a step forward, giving it the potential to upgrade its global payment system – just as the previous era of Internet innovation changed media, commerce, software, communications, and other industries. These huge changes have greatly improved the customer experience, reduced costs, increased speed and driven economic growth for individuals and businesses around the world.

To achieve this potential, Circle Payments Network (CPN) serves as an infrastructure to overcome many of the barriers to limiting the adoption of stablecoins in mainstream payments so far. These barriers include barriers to entry, vague compliance requirements, technical complexity, and concerns about secure storage of digital cash.

Circle Payments Network (CPN) brings financial institutions into a compliant, seamless and programmable framework to coordinate global payments for fiat, USDC and other payment stablecoins.

Business and individual customers of these financial institutions can enjoy faster and less costly payment services than traditional payment systems, which are often limited by fragmented networks or closed systems. Crucially, Circle Payments Network (CPN) makes infrastructure to lay the foundation for this entire ecosystem, eliminating many of the technical complexity and operational barriers that have so far hindered mainstream stablecoins adoption, including the need for businesses to self-customize stablecoins. Circle Payments Network (CPN) also opens the door to breakthroughs in programmable currencies, unlocking new uses for currencies in global value exchanges.

This white paper elaborates on the design principles of Circle Payments Network (CPN), outlines initial and recent use cases, and proposes potential future use cases and growth opportunities. This article aims to help financial institutions, payment companies, application developers, innovators, and other stakeholders understand their role in building and leveraging the Circle Payments Network (CPN) – and how the network enables them to innovate and pass on the benefits of stablecoins to customers.

2. Introduction

2.1 The shortcomings of the global financial payment system

The current global economy is more closely linked than ever before, but unlike other economic fields, the infrastructure that supports capital flow still mainly depends on the framework before the Internet era.

Previously, it was impossible to provide a "monetary protocol Money Protocol" that can transfer value through the Internet in a completely native digital form.

The United States Automatic Clearing House (ACH) and other similar protocols have now become a core component of the fragmented global payment landscape, which emerged globally in the early 1970s. Although recent developments, such as the single euro payment zone in the euro zone (SEPA), and national real-time payment systems such as Brazil's PIX and India's Unified Payment Interface (UPI), have increased the speed of domestic transactions, they still lack a standard of global interoperability and global scale, and have not leveraged the openness and scalability of building programmable currencies based on open blockchain networks.

Businesses and individuals around the world are paying a high price for relying on this traditional payment infrastructure. According to the McKinsey report (Global Payments in 2024), the global payments industry has revenues exceeding $2.4 trillion per year. Most of this “revenue” is generated in the form of fees charged to the sender and the receiver , reflecting the operational complexity and intermediation of traditional infrastructure – in fact a tax on businesses and households around the world.

The current reality is that international wire transfers can cost up to $50 per transaction, and intermediaries on this path usually charge additional fees. According to the World Bank, the global average cost of sending $200 was 6.65% in the second quarter of 2024. In addition, foreign exchange exchange further exacerbates these challenges, introducing expensive foreign exchange fees and price fluctuations.

The fragmented settlement process in the agency banking system continues to impose significant economic costs on businesses and society. For importers and buyers, payments require several days to be settled, which may weaken their cash flow profile and increase the complexity of liquidity planning. For exporters and sellers, the unpredictable multi-day settlement window means they have to rely more on expensive short-term working capital borrowings to maintain short-term operations. Receivers who rely on cross-border remittances for food, shelter and other basic living needs may face the risk of significant income erosion due to the intervention of traditional intermediate institutions, while also enduring payment delays, and in some cases, they may also face the inherent risk of handling cash in a crime-prone environment.

( Digital USD on the Internet Value - 2025 USDC Market Economy Report )

2.2 Change has arrived

Change should have come long ago. Although the Internet has revolutionized almost every aspect of global business over the past few decades, the way capital flows still relies on fragmented traditional networks that lack transparency, inefficiency and lack of innovation. Although some countries have successfully implemented national real-time payment systems, these solutions cannot be expanded globally and have limited access to developers.

Half a century since the emergence of early payment information and settlement systems such as ACH, global communication technology has developed to be able to instantly connect people around the world. Today, billions of people can watch movies on their phones while riding the subway, get all human knowledge instantly at almost zero cost, and be able to buy and sell almost everything from around the world.

It is time to adopt a new global capital flow method - a method that can operate 24/7, seamlessly connected, and aims to eliminate the inefficiency of traditional payment systems while relying on and integrating the solid foundation of the traditional financial system.

( Digital USD on the Internet Value - 2025 USDC Market Economy Report )

2.3 Internet-based currency settlement layer—Circle Payments Network

With the launch of Circle Payments Network (CPN), this vision is becoming a reality. Circle Payments Network (CPN) is a new protocol layer built on a comprehensive, open and Internet-based settlement system, with its core based on USDC, EURC and other future regulated payment stablecoins. By connecting open platforms with a global scale and reducing intermediate links, CPNs can enable capital flows in ways that traditional closed networks cannot.

Importantly, CPN does not transfer funds directly; instead, it acts as a market for financial institutions and acts as a coordination agreement to coordinate global capital flows and seamless exchange of information.

CPN marks the first time that regulated settlement assets (in the form of stablecoins) are combined with a coordination and governance layer designed for financial institutions. This integration connects traditional payment systems with assets such as USDC and EURC, while establishing a trusted counterparty framework to achieve a more efficient global settlement method with fewer intermediate links.

By introducing a new “Clearing Layer” of digital dollars based on compliance, all-weather, CPN has laid the foundation for cross-border settlement on the Internet.

(https://x.com/circle/status/1914411337683480654)

2.4 Benefits of Circle Payments Network

A. Internet financial payment services

CPN will benefit billions of people and tens of millions of businesses, which will be able to access funds and other financial services just like other transformative global Internet services. Payers can choose to initiate payments in fiat or stablecoins, while payers (whether business or individual) can choose to retain stablecoins or exchange them for local currency when they receive payments. CPN will make nearly instant, borderless payments a universal reality.

The launch of CPN makes it easier for people to imagine a future: international suppliers can receive cross-border payments almost instantly and at low cost through a modern, compliance-first platform that supports global supply chains; small merchants can achieve near-real-time payments without high fees eroding sales profits; global sellers can directly enter new markets; content creators can obtain small payments from consumers through the cost efficiency of stablecoins; remittance recipients can obtain a larger proportion of the amount of money they remittances, thereby increasing purchasing power where they need it most.

B. Reduce technical complexity

In addition to being an upgrade to many of today’s inter-agency payment networks (which are often burdened by traditional infrastructure, closed ecosystems, and slow or expensive settlements), CPN is also designed as a modern Orchestration Layer based on stablecoins and blockchains to achieve scale-up.

Although blockchain-based payments have gained some appeal, they are not completely frictionless or credible by themselves, especially in an inter-agency environment where features such as settlement assurance, reversibility, compliance, standardized protocols and strong security are basic requirements. CPN further reduces technical complexity and minimizes the operational and financial challenges that have so far prevented stablecoins from entering mainstream payments and commerce, paving the way for a more efficient, inclusive, innovative and transparent financial ecosystem.

C. Reduce costs and increase efficiency

From a cost and efficiency perspective, CPN is a powerful alternative to traditional cross-border payments. While buying stablecoins and converting them back to fiat currency will incur a fee, in many markets outside the United States, the cost of these “in and out currency acceptances” is declining and may be less than the cost of obtaining US dollars through banks.

Traditional U.S. dollar transfers can be both expensive and slow for both the sender and the receiver, making both parties more reliant on short-term working capital financing (as described above). By enabling near-instant settlements and reducing reliance on intermediaries, CPN can unlock significant cost efficiency.

In addition, as an open platform, CPN has the potential to promote a competitive market for inbound and outbound currency acceptance, foreign exchange and other services, thereby further reducing costs and improving access conditions.

D. Transparent, safe and scalable

CPN is a transparent, secure and scalable infrastructure designed to help financial institutions better serve their businesses and individual customers. It is crucial that CPN will be able to unlock these efficiencies without sacrificing compliance. Circle has established a strict governance framework for CPN, requiring participating financial institutions to comply with global anti-money laundering and Counter-Terrorism Financing (AML/CFT) standards and economic sanctions requirements.

E. Open infrastructure for innovation

Importantly, CPN does not transfer funds directly; instead, it acts as a market for financial institutions and acts as a coordinated agreement to coordinate global capital flows and seamless exchange of information. As a network operator, Circle defines the CPN protocol and provides application program interfaces (APIs), developer software development kits (SDKs), and public smart contracts to coordinate global capital flows.

The growth and success of CPN will not only be limited to the Circle ecosystem, but will also rely on participants outside of Circle to jointly unlock economic value. The network will provide a soil that allows banks, payment companies, currency acceptance service providers, application developers, and other regulated stablecoin issuers to innovate together to provide greater value and better experience to their own customers.

It is based on this open public blockchain infrastructure that CPN and regulated payment stablecoins provide builders with a strong foundation to launch on-chain applications that seamlessly transfer funds using these networks.

CPN provides innovators and builders with building blocks to develop new user experiences and support a wide range of payment use cases. Over time, builders will be able to create a vibrant ecosystem of modules and application services on top of CPN – building a third-party functional marketplace for CPN participants and end users to benefit and unlock a brand new and powerful distribution platform for fintech developers.

3. Circle Vision

Through Circle Payments Network (CPN), Circle is building a new platform and network ecosystem that will create value for every stakeholder in the global economy, helping to accelerate the benefits of this new Internet-based financial system to society:

enterprise:

Importers, exporters, merchants and large enterprises : CPN-enabled financial institutions can leverage significant costs and frictions, strengthen global supply chains, optimize fund management operations, and reduce reliance on expensive short-term working capital funds.

personal:

Remittance senders and recipients, content creators, and other individuals who often send or receive small payments : they will receive greater value, and financial institutions using CPN can provide these improved services faster, lower cost and easier.

Ecological builder:

Banks, payment companies and other providers : leverage CPN's platform services to develop innovative payment use cases, leverage stablecoins' programmability, SDKs (software development toolkits) and smart contracts to create a thriving ecosystem. Over time, this will be able to fully unlock the full potential of stablecoin payments for businesses and individuals. In addition, third-party developers and enterprises can introduce value-added services to further expand the functions of the network.

All participants and end users of CPN networks will be able to benefit from an open and continuously upgraded capital flow infrastructure that not only reduces the cost of cross-border payments and increases speed, but also ensures the technological readiness of the Internet financial system.

(www.circle.com/cpn)

IV. Use cases

Circle Payments Network (CPN) aims to support a wide range of payment and value flow use cases by using regulated stablecoins to enable seamless, efficient and secure transactions on a supported blockchain network.

Its compliance-oriented architecture allows the originating financial institution (OFI) to discover and connect to the beneficiary financial institution (BFI) through CPN , while empowering ecological builders to develop innovative solutions for individuals, businesses and institutions.

(www.circle.com/cpn)

4.1 Business Payments

A. Supplier Paymetns

By shortening settlement time and eliminating intermediate links, cross-border payments between companies can be accelerated and simplified.

A Mexico-based manufacturing company needs to pay a steel supplier in Germany, but wants to avoid high foreign exchange fees and multi-day bank transfers. The initiating financial institution of the enterprise (OFI) exchanges Mexican peso (MXN) for USDC, contacts Germany's beneficiary financial institution (BFI) through CPN and sends USDC, which then seamlessly converts USDC into euros and settles the payments instantly into the supplier's account.

B. Retail Payments

Improve online business worldwide with secure, efficient and flexible payment options.

A Brazil-based fashion retailer sells goods to U.S. customers. The retailer's BFI contacted an OFI through CPN to collect USD payments. OFI converts USD to USDC and sends it to BFI, which then seamlessly converts USDC to Brazilian real (BRL), or saves it as USDC on behalf of the retailer in the digital asset custodian. The retailer can receive funds instantly, which is faster than traditional payment processors, and can also choose to keep working capital as digital dollars.

C. Trade Finance

Simplify and ensure the security of international trade payments.

A U.S. textile importer placed an order with an Indian manufacturer in hopes to reduce the time and cost of traditional trade financing. The importer's OFI converts USD (USD) into USDC and connects with a BFI in India through CPN to transfer funds. BFI manages the hosting of USDC through smart contracts and settles the Indian Rupee ( INR ) to the manufacturer after verification of shipment documents. This approach enables faster settlement, reduces counterparty risks, while leveraging innovations in smart contracts to provide custody services .

D. Payroll and Salary Disbursements

Enables businesses to handle global compensation payments with minimal fees and instant settlement.

A multinational company pays wages to remote employees in multiple countries. Instead of relying on traditional banking channels, the company exchanged local currencies for USDC through its OFI and paid wages to employees immediately through multiple BFIs discovered through CPN. These BFIs receive USDC from OFI and complete final payment in each employee's local currency.

E. Artificial Intelligence Payments (AI Payments)

In the future, CPN will support autonomous artificial intelligence agents (AI Agents) to send and receive payments on behalf of users or systems, and support real-time value exchange.

A logistics company uses artificial intelligence to proxy cross-border freight services. When the agent chooses a service provider in Singapore, it uses OFI integrated CPN to exchange USD (USD) for USDC and automatically sends payments to BFI in Singapore, which the BFI then converts it into Singapore Dollar (SGD). The entire payment process is executed programmatically through smart contracts , minimizing manual operation steps and realizing intelligent cross-border machine-to-machine payments.

4.2 Consumer Payments

A. Remittances

Empower individuals to quickly and cost-effective remittance services, avoiding high fees and delays.

A user living in the United States wants to send money to his family in the Philippines. As a remittance company for the US initiating financial institution (OFI), it converts USD (USD) into USDC and at the same time, the local beneficiary financial institution (BFI) of the Philippines dynamically discovered through CPN, delivering funds to their families in a near real-time manner, at only a fraction of the traditional remittance fees.

B. Subscriptions

Supports regular payments of digital services through programmable stablecoin billing.

A digital media platform provides advanced subscription services to users around the world. Monthly, the user's digital wallet initiates a USDC payment through the Initiating Financial Institution (OFI), which is routed through the Platform Benefit Financial Institution (BFI) discovered by CPN. BFI receives funds, and on behalf of the media platform, it saves it as USDC in the digital asset custodian, or exchanges it for local fiat currency as needed and credits it to the media platform's account.

C. Micropayments and Content Monetization

Provide instant, low-cost small payment support for content creators and digital services.

A Brazilian content creator receives small donations from fans around the world through CPN, using local sponsoring financial institutions (OFIs) and beneficiary financial institutions (BFIs) that support CPN. Instead of facing long delays and high platform fees, fans can send stablecoins instantly -achieving fast and low-cost monetization.

D. E-commerce (E-commerce)

Expand consumers' access to the global online market through a fast payment experience.

A UK customer purchases electronic products from sellers in South Korea through an international e-commerce platform. At checkout, the client pays in GBP through a local initiating financial institution (OFI), which converts funds into USDC and transfers them to the beneficiary financial institution (BFI) in South Korea. BFI redeems USDC into Korean won (KRW) and deposits it into the seller's account.

4.3 Institutional Payments

A. Capital Markets Settlement

By achieving faster and more transparent settlements between financial institutions, reducing counterparty risks and operating costs will be achieved, thereby improving transaction efficiency.

A U.S. asset management company has executed an OTC bond transaction with an European investment bank, but hopes to avoid T+2 settlement delays, as well as the resulting capital inefficiency and counterparty risks. The asset management company's initiating financial institution (OFI) converts USD (USD) into USDC, and connects and transfers USDC through CPN, and BFI immediately settles transactions for investment banks in Euro (EUR).

B. Foreign Exchange (FX)

By improving the efficiency of multi-currency operations and simplifying currency exchange, solving the high foreign exchange rates of traditional providers and the complexity and delays of multi-currency management.

A European investment company wants to fund a real estate acquisition in Japan, but wants to avoid high foreign exchange fees and delays. The investment company's OFI converts the euro (EUR) to EURC, and Japan's BFI seamlessly converts it into Japanese yen (JPY) in competitive foreign exchange places on the chain and settles instantly.

C. Treasury Services

Simplify the return of funds by efficiently converting overseas revenue back to the company's local market.

A U.S.-based enterprise software provider provides cloud-based solutions to a wide range of businesses in Southeast Asia. To return revenue from the region to the U.S., the company’s beneficiary financial institution (BFI) in the U.S. discovered locally initiated financial institutions (OFIs) in the Philippines through CPN. OFI collects Philippine Peso (PHP) payments from corporate clients, redeems them for USDC, and transfers them to BFI in the United States. BFI then converts USDC into USD (USD) and deposits it into the company’s fund management account, enabling faster and compliant global revenue integration.

D. Government and Humanitarian Payments

Provides safe, reliable and efficient channels for large-scale payments, from disaster relief funds to institutional transfers.

An international non-governmental organization (NGO) uses stablecoins to distribute disaster relief funds. The NGO initiates payments through its initiating financial institution (OFI), which converts local fiat currency into USDC and transfers it to beneficiary financial institution (BFI) operating in the recipient area. The BFI then either delivers funds directly to the beneficiary’s digital wallet or exchanges USDC into local fiat currency and deposits into its bank account to ensure transparency, accelerates fund delivery, and enhance accountability for aid distribution.

E. DeFi Integrations

By providing a foundation for lending, borrowing, savings, etc., supporting DeFi innovators and unleashing the potential of mainstream scale-based on-chain finance.

A properly licensed and regulated DeFi lending platform integrates USDC and EURC to provide loan and savings products. With CPN’s infrastructure, the platform can facilitate seamless cross-border transactions, reduce volatility, and support compliant institutional customer flows while building trust among a diverse user base.

V. CPN Ecological Stakeholders and Roles

The CPN ecosystem is composed of ecological stakeholders and actors who play an important role in promoting global payments, driving technological innovation, and promoting network governance, economic value creation and network adoption.

5.1 CPN Governance Organization

Circle serves as the main governance and standards-setting agency for CPN and is also a network operator.

Circle's main responsibilities include:

• Develop and maintain the Circle Payments Network Rules (“CPN Rules”) that govern the qualifications, operations and compliance of all participants.

• Develop and maintain core infrastructure - smart contracts, APIs and SDKs to enable seamless payment settlement (send/receive transactions) across blockchain networks.

• Operational coordination agreement for member and price discovery, payment routing and settlement between counterparty.

• Promote standardized and automated information sharing among members to ensure compliance with Travel Rule.

• Verify the qualifications of financial institutions, approve their participation in the network, and issue certificates that confirm compliance with CPN standards involving licensing, anti-money laundering and Counter-terrorism financing (AML/CFT), sanctions compliance, and financial strength.

• Monitor members’ compliance with regulatory requirements, including AML/CFT and sanctions, through ongoing risk-based reviews.

• Plan and manage cybersecurity, incident response and infrastructure to ensure operational integrity and resilience.

• Introduce pre-reviewed third-party service providers and modular applications that comply with CPN compliance, security, and performance standards.

5.2 CPN Members

Members, also known as Participating Financial Institutions (PFIs) , are the backbone of CPN. They act as counterparties, initiate, facilitate or receive payments in the network, and execute transactions in accordance with CPN rules and governance standards.

PFIs include virtual asset service providers (VASPs), traditional and crypto-native payment service providers (PSPs), and financial institutions such as traditional or digital banks. Depending on their role in transactions, PFIs may act as initiating financial institutions (OFIs) and initiate payments on behalf of the sender; or as beneficiary financial institutions (BFIs), receive stablecoin payments and facilitate the last mile fiat currency payments through the local payment system, or provide stablecoin custody services on behalf of the recipient.

The core responsibilities of CPN members include:

• Maintain appropriate licensing and ensure continuous compliance with applicable regulations in all relevant jurisdictions, including anti-money laundering and Counter-Terrorism Financing (AML/CFT) and sanctions requirements, while complying with CPN rules.

• Participate in Circle's qualification process and maintain up-to-date verification of legal entity information, compliance status, jurisdictional scope and risk profile.

• Based on its compliance obligations, the counterparty and transactions are subject to risk-based assessments of the information collected through the CPN and supervision of execution.

• Payments are performed through a range of technical services and agreements detailed in the CPN rules based on their role as OFI or BFI.

• Comply with CPN's technical and infrastructure requirements, including security integration, service level agreement (SLA) performance, transaction monitoring and data protection protocols.

• Share the necessary initiator and beneficiary information in accordance with the CPN's Travel Rule Compliance Framework, Information Requests (RFIs) and other oversight requests.

• Monitor transactions to detect and report suspicious activity in accordance with applicable regulations.

• Participate in CPN governance through structured feedback, operational reviews, and member reputation scores to enhance transparency and support continuous improvement.

• Provide timely support and solutions for other members or end users' inquiries about the network.

• Develop and provide innovative payment use cases with CPN's developer SDK, regulated stablecoins and smart contract infrastructure.

5.3 CPN End Users (Enterprise and Individual)

End users are the ultimate initiators and beneficiaries of payment transactions – although they do not interact directly with CPN, they benefit from lower costs, faster settlements, greater transparency, and ongoing innovation. The sender initiates payments through the initiating financial institution (OFI), and the beneficiary receives payments through the beneficiary financial institution (BFI).

5.4 CPN Service Provider

These entities include financial institutions (FIs) and non-financial institutions (non-FIs), which provide value-added technology solutions and financial services to CPN members and end users.

They include:

• Liquidity Providers and Forex Places : These entities provide efficient market making, price discovery and currency exchange services for stablecoin trading within CPN. They provide liquidity for cross-border stablecoin settlement and ensure competitive foreign exchange rates.

• Stablecoin Issuers : These institutions issue regulated payment stablecoins, which are the main trading medium within the CPN. Stablecoin issuers ensure transparent reserves, regulatory compliance, and underlying fiat currency liquidity that supports seamless cross-border transactions.

• Technology Solutions and Financial Service Providers : These service providers provide a range of services to CPN members, including fraud and risk management, wallet infrastructure, custodial solutions, billing and invoicing, and compliance and transaction monitoring solutions to support their business and operational needs.

(www.circle.com/cpn)

6. CPN governance, qualification certification and network operation

CPN operates under a collaborative and transparent governance framework, aiming to prioritize compliance, security and trust within the network. The framework covers three key aspects of governance:

• Qualification Review and Supervision : Circle, as the primary governance body, is responsible for developing strict qualification standards that are documented in detail in the Circle Payments Network Rules and promotes the integration of regulated payment stablecoins into the network.

• Network Functions and Operations : Core functions support seamless and compliant transactions while ensuring operational rigor and continuous improvement.

• Transparency and stakeholder engagement : CPN aligns with global standards by actively interacting with diverse stakeholders including financial institutions, regulators, businesses and builders to enhance trust, accelerate adoption, and promote sustainable network ecosystem growth.

Network operation:

• Only legally authorized financial institutions;

• mandatory anti-money laundering and anti-terrorism financing (AML/CFT) and sanctions compliance;

• Secure transaction data sharing, including travel rules (Travel Rule);

• Continuous audit and supervision.

6.1 Qualification Review and Supervision

CPN's governance framework defines the integration of eligibility criteria, certification protocols, and regulated stablecoins to ensure trusted participation of financial institutions, regulated stablecoin issuers and service providers in the network.

A. Strict qualification standards

Members must meet comprehensive eligibility requirements before gaining access to the network. This includes holding all necessary licenses, implementing sanctions and anti-money laundering (AML) programs consistent with local regulations and global norms, maintaining reasonable security controls, and demonstrating adequate financial strength. As a network operator, Circle evaluates all potential members before granting access and reassesses them regularly based on risk. Members licensed under a sound regulatory regime established by international compliance standards-setting agencies such as the Financial Action Task Force (FATF) will undergo a standard review, while other members will need to undergo a deeper assessment. Qualification criteria have been published and Circle's assessment can also be used as input for the member's own counterparty due diligence process.

B. Member authentication and access

After successful completion of qualification verification and approval, CPN issues unique network certification to qualified members.这些认证使交易对手能够以安全的方式识别彼此并检索交易对手信息，促进透明度、便于进行明智的风险评估，并提高交易对手尽职调查的效率。该认证包含一组明确定义的属性——包括会员身份状态、司法管辖区范围和资格信息——这些属性会持续受到监控并更新，以反映风险态势的变化。

C. 受监管支付稳定币的整合

CPN 的治理框架概述了将新的受监管支付稳定币整合到CPN 中的结构化评估和审批流程。潜在的稳定币必须根据CPN 的严格资格标准接受严格的评估，包括监管合规性、透明的储备金和审计证明、银行支付渠道的可用性、底层法币流动性、风险管理标准、信息和网络安全能力以及报告实践等因素。只有完全满足这些标准并获得治理机构批准的稳定币才可以在网络内运营，确保它们为稳定、安全和高效的网络生态系统做出贡献。

6.2 网络功能与运营

CPN 通过一个强大的运营框架，使成员能够进行安全、实时的交易，该框架确保了一致性、可扩展性和弹性。该框架包括交易协调、运营支持、事件响应和基础设施管理。

A. 交易协调与风险管理

CPN 内的交易通过一系列技术服务和协议进行协调，确保参与成员之间无缝执行。此外，网络成员利用CPN 提供的自动警报以及定期的风险评估，持续监控交易流向，重点关注交易异常和合作伙伴表现，例如评估失败交易率、服务水平协议（SLA）违规等。这些措施共同主动缓解运营风险，帮助维护网络的可靠性和效率。

B. 成员运营支持

CPN 提供明确的运营指南，包括在CPN 规则中定义的服务水平协议（SLA），涵盖对正常运行时间、交易速度、争议解决和及时信息共享的期望。网络还标准化了交易和交易对手数据的交换，通过减少定制化协调的需求来简化运营。

C. 事件和危机管理

CPN 制定了详细的协议，用于管理安全事件、监管合规问题和系统停机。这些协议包括与成员预先定义的沟通渠道以及透明且公正的解决流程，无论涉及合规还是交易问题，都能确保迅速采取行动并有效管理争议。

D. 基础设施的可扩展性与规划

通过可观测性工具持续监控CPN 的基础设施，这些工具跟踪吞吐量、延迟和错误率。自动化的性能监控和定期的负载测试使网络能够根据需求进行扩展。Circle 与经过审查的基础设施和云合作伙伴合作，以确保弹性计算和存储资源的配置。可扩展性审查和走廊级别的压力测试验证了网络对增长的交易量和网络扩展的准备情况。

6.3 透明度与利益相关者参与

CPN 的治理建立在透明度之上，这有助于在所有参与者之间建立信任和信心。作为治理机构的Circle，在咨询委员会的建议下，采取战略性建议以加强治理框架。CPN 定期进行调查、焦点小组讨论和结构化审查，以收集成员的反馈并评估服务质量。这些输入推动了持续改进，并帮助确保网络的发展能够满足参与者的需求。独立审计和定期公开报告交易量、系统正常运行时间以及成员合规性，进一步强化了运营的完整性和问责制。

CPN 成员和最终用户的代表以及与监管机构的互动，在网络的发展中发挥着至关重要的作用。鼓励CPN 成员积极参与网络规则和技术标准的制定，通过提供有助于塑造网络战略和增长的建议和运营见解。此外，Circle 的金融服务部门与全球监管机构持续互动，拥有良好的记录，这一优势可以被利用以确保CPN 与国际标准保持一致——特别是国际反洗钱和反恐融资（AML/CFT）以及金融行动特别工作组（FATF）旅行规则标准——并在一个安全、可信且合规的环境中运营。

七、CPN 核心服务

CPN 作为专为稳定币设计的协调协议，能够实现无缝、合规且可编程的全球交易。

CPN 利用公共区块链网络进行最终结算，同时优化支付协调、与合规相关的数据交换以及在支付稳定币和网络成员之间的智能路由。稳定币是CPN 内的基础数字资产类别，提供了高信任金融应用所需的稳定性、互操作性和可编程性。

在启动时，该网络支持USDC 和EURC，并计划扩展到其他符合CPN 严格治理和资格标准的受监管支付稳定币。随着时间的推移，CPN 将成为构建者开发互操作模块和应用程序服务的基础，这些服务将扩展网络的实用性，并为全球支付和金融创新解锁新的用例。

7.1 通过智能协调实现支付

CPN 的支付协议建立在一个结合了链下和链上系统的混合架构之上，帮助聚合流动性，并促进网络成员之间的价格发现。随着更多支付稳定币加入网络，CPN 将演变为一个 链上外汇路由基础设施 ，实现高效且即时的稳定币之间兑换，同时仍然协调发起金融机构（OFI）和受益金融机构（BFI）之间的交易结算。

在CPN 的初始版本中，协调通过生成交易请求的链下API 系统发生。OFI 对这些请求进行签名，以启动向指定BFI 钱包的USDC 或EURC 转移。在这个阶段，Circle（作为网络运营商和治理机构）将交易广播到适当的区块链。这个过程验证了支付细节，确保正确的金额和代币被交付给BFI，并且所有相关费用都在约定的结算时间内得到覆盖。

随后，CPN 将过渡到一个智能合约协议架构，增强网络的可组合性，并引入更高效、增值的功能。CPN 智能合约支付协议被设计为使用稳定币（包括USDC 和EURC）在成员之间进行无缝的链上支付。通过利用智能合约，该协议将实现错误风险最小化的交易、自动对账以及高效的费用收取，同时保持非托管设计。

根据该协议，OFI 通过部署在CPN 支持的公共区块链网络上的智能合约发起支付。该合约在执行支付之前验证关键交易参数（如代币类型、金额、接收方地址和截止日期）。与容易出错且需要单独开具交易费用发票的传统转账不同，智能合约强制执行精确支付，并在涉及多个出价和报价的情况下高效地将交易路由到不同的BFI。

为了增强透明度和安全性，每笔交易都被唯一标识并带有时间戳，确保为合规和对账目的提供清晰的可审计性。此外，未来该协议还将包括一个可选的“撤销”功能，允许发送方在最终确认前的短暂窗口期内取消错误交易。

（www.circle.com/cpn）

7.2 通过智能发现和路由优化外汇（FX）

CPN 使参与的发起金融机构（OFI）能够发现受益金融机构（BFI），并发送稳定币用于支付结算。在发现过程中，CPN 允许OFI 查询网络以获取特定的稳定币或法币货币对。该系统允许OFI 发现网络参与者以及请求对应的汇率和流动性。最初，平台将USDC 和EURC 与本地法币流动性订单簿和私人流动性来源进行整合。随着时间的推移，系统将过渡到一个完全链上的外汇（FX）路由、聚合和结算架构——提供直接访问链上外汇池、订单簿和私人流动性。网络的发现能力将包括订单路由，而询价（Request-for-Quote, RFQ）系统将进一步优化外汇执行，以满足传统支付系统的性能标准。

虽然网络最初专注于在BFIs 之间发现流动性，但它将逐渐扩展到包括白名单上的链上场所——例如自动化做市商（AMMs）、链上订单簿和其他流动性提供者——以扩大对稳定币流动性的接入。一旦发现，CPN 将智能匹配这些来源的订单，实现直接的稳定币外汇兑换，内置安全措施和透明执行，由Circle 作为网络运营商进行协调。

7.3 跨链无缝结算支付

CPN 支持稳定币在多个区块链上的原生结算，提供一种无缝的跨链支付转移机制。参与金融机构（PFIs）将其偏好的区块链带到网络中，而CPN 则协调选定的源区块链和目标区块链之间的交易，以实现高效的支付结算。借助Circle 的跨链转账协议（CCTP 版本2），CPN 为允许的稳定币提供快速且安全的跨链转账，确保交易在区块链网络中保持速度和完整性。最初，平台将在启动时支持有限数量的区块链，未来根据网络成员的偏好扩展到更多区块链。

7.4 通过选择性透明度保护机密性

CPN 将在公共区块链上引入先进的机密性增强功能，以保护交易数据，帮助成员履行隐私和运营义务。这些机制允许用户将某些交易指定为机密，确保敏感支付信息不会永久显示在公共区块链上。这一能力支持广泛的应用场景，使企业能够通过CPN 为关键活动（如企业支付、贸易融资和工资发放）保持机密性。

此外，CPN 将采用一个机密性协议（该协议将单独定义，不包含在本白皮书中），以实现选择性披露。根据该协议，交易细节将仅对授权方（包括交易对手、执法机构、监管机构和审计师）在合规或法律目的所需时可见。

7.5 通过可组合性和可信互操作性扩展能力

为了扩展网络生态系统的价值，CPN 允许经过预审查的第三方协议与其核心基础设施集成并互操作，增强其支付能力的实用性和多功能性。Circle 设想了一系列多样化的集成——包括借贷和信贷、流动性聚合、机构收益、托管、订阅服务等协议。参与仅限于经过Circle 白名单、审计和严格审查的协议，这些协议需满足严格的监管合规性、安全性和流动性管理标准。通过这种可组合架构，CPN 旨在为全球支付、金融服务和技术驱动的解决方案解锁一个安全、可编程的基础和第三方生态系统。

八、CPN 经济模型

CPN 的经济模型和激励机制旨在推动早期快速采用，同时为所有网络成员建立一个可持续的长期收入策略。它在所有网络成员、最终用户、构建者和服务提供商之间对齐激励机制，以促进网络增长和可持续性。

通过CPN 处理的交易会产生三种主要费用：

1. 支付费用（Payout Fees） ：补偿受益金融机构（BFIs）进行本地法币支付和处理的费用。

2. 外汇差价（FX Spreads） ：反映流动性风险和货币兑换成本。

3. CPN 网络费用 ：一种基于国家分组的分层可变基点收费，用于支持网络的核心功能，包括合规性、安全性、基础设施和开发。

随着CPN 的增长以及Circle 和第三方开发者通过精选的市场引入新的增值服务，将实施额外的基于使用的费用以支持和维持这些服务。这些服务可能包括欺诈检测工具、风险管理、钱包基础设施、托管、计费和高级合规能力等。第一方（1P）和第三方（3P）服务费用将为提供商创造收入机会，并使金融机构能够通过模块化、即插即用的解决方案定制支付体验。

网络和市场费用的一部分将战略性地重新投资于核心优先事项，例如基础设施升级、研发、网络运营、用户获取激励措施以及开发者生态系统增长——包括为CPN 集成和新应用提供资金支持。这种再投资方法旨在增强平台的韧性，推动创新，并加速长期网络扩展。