The United Nations (UN) has joined forces with USDC-issuer Circle to upgrade the refugee aid system in terms of efficiency. Circle announced the development as part of the the World Economic Forum (WEF) conference bring hosted in Davos.
Circle’s philanthropic arm called the Circle Foundation has debuted its international grant with its aid offer to the UN. Official announcement from the stablecoin major committed one percent equity to UN’s Digital Hub of Treasury Solutions (DHoTS).
The is intended to modernize the international aid delivery via stablecoins and blockchain.
In recent times, the United Nations High Commissioner for Refugees (UNHCR) tested stablecoin utility against traditional financial methods as part of its blockchain‑based banking pilots. Citing UNHCR’s findings, Circle claimed that stablecoins can deliver refugee aid faster with stronger traceability and accountability.
“More than $38 billion in annual humanitarian funds rely on legacy systems that can be slow and inefficient; UNHCR’s blockchain‑based banking pilots demonstrate how next‑generation digital financial infrastructure can deliver human- centered aid faster promising initial cost savings of up to 20 percent —maximizing impact for every donor dollar,” the U.S.-based crypto major claimed.
For now, the exact data of funds poured in via Circle and the roadmap to use the grant in upgrading the payment ecosystem for UN remains unclear.
This, however, is not the first time that Circle and the UN have joined hands. In 2022, DHoTS had partnered Circle to facilitate aid transfers to distressed Ukrainians who lost their homes amid the war with Russia.