Seven leading cryptocurrency companies have come together to establish common standards for cross-chain stablecoin transfers, following a record-breaking year in 2024 where transfer volumes exceeded those of Visa and Mastercard.
Fireblocks, the Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs, and Monad Foundation announced on Thursday that they are forming the Blockchain Payments Consortium (BPC).
The consortium’s goal is to develop a “common framework that enhances blockchain transactions with the traditional data requirements of traditional payments.”
“Blockchain technology is revolutionizing global payments. However, to fully realize the potential of blockchain payments, we must address the inconsistent and fragmented experiences that individuals and institutions encounter when transitioning between traditional payments and blockchain,” stated the BPC in its manifesto.
Source: Blockchain Payments Consortium
According to the blockchain analytics platform Artemis Terminal, stablecoin transfer volumes have increased by 4.36% in the last 30 days, with adjusted transaction volumes exceeding $3.7 trillion.
Throughout 2024, the total reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.
Framework Aims to Drive Adoption
One of the BPC’s objectives is to facilitate faster, cost-effective cross-border payments and remittances, while also integrating blockchain ecosystems into traditional finance and aligning with regulatory bodies.
“This will empower financial institutions, businesses, and other entities to create systems that seamlessly operate across networks and borders,” the BCP emphasized.
The consortium also aims to “serve as a bridge between blockchain ecosystems, regulators, and traditional financial institutions; providing a consistent, interoperable compliance framework across different jurisdictions.”
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Crucial Progress for Industry Maturity
Raja Chakravorti, Chief Business Officer at Stellar Development Foundation, described the collaboration of crypto firms as “a crucial step towards advancing our industry.”
Fireblocks pointed out that the lack of a shared language for blockchain payments leads to “friction, fragmentation, and missed opportunities.”
Ran Goldi, Senior Vice President of Payments at Fireblocks, emphasized the need for increased collaboration despite the industry’s growing adoption.
Source: Fireblocks
“In the past 18 months, our industry has witnessed mainstream adoption, with payments leading the way. As more established players enter the space, enhancing our collaboration, coordination, and operations is crucial,” Goldi stated.
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