The payment software business has added stablecoin settlement to its existing payments stack, which includes USDG, USDP, and USDC along with regular payment methods.
Modern Treasury is also part of Circle’s Alliance Program, a group of partners that enable the USDC stablecoin to be used more broadly in payments and financial services. The company is based in San Francisco.
The company said on Wednesday that it has introduced stablecoin settlement to the same infrastructure that businesses already use for ACH transfers, wire payments, and real-time payment networks. The platform now supports Global Dollar (USDG $1), Pax Dollar (USDP), and USDC (USDC $1). USDT $1 will be introduced in the future.
In October, Modern Treasure bought Beam, a platform for stablecoins and fiat payments.
The company has joined the Global Dollar Network and worked with Paxos to add regulated stablecoins and settlement features to its platform. Modern Treasury, which is in San Francisco, is also a member of Circle’s Alliance Program, a network of partners that helps the USDC stablecoin be used more widely in payments and financial services.
With the change, stablecoins are now part of the same compliance framework as traditional financial lines. Businesses that use Modern Treasury don’t need separate vendors or technological interfaces to handle payments in both crypto and fiat currencies anymore.
The update basically adds stablecoins as another way to settle payments in a normal payment flow. The change could make it easier for businesses to use blockchain-based payment rails.
Stablecoins gain broader institutional traction
Modern Treasury’s most recent integration comes at a time when stablecoins are becoming more popular in the payments industry, especially after the US GENIUS Act was passed last July. This law set up a federal framework for dollar-backed stablecoins.
Last year, the total value of stablecoins in circulation surged by about 50%, reaching over $300 billion for the first time. In the last few months, growth has slowed down. Supply has been around that level because the crypto market is cooling down and liquidity is getting tighter.
Still, issuance is close to record highs, showing that there is still a lot of demand for digital assets linked to the dollar in trading, cross-border transfers, and settlement.
The biggest banks in the US have also shown interest in stablecoins and the technology that goes along with them. There have been reports that JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are talking about a stablecoin project that they would all run together, but the plans are still in the early stages.
Fidelity Investments said last month that it would launch a new stablecoin dubbed the Fidelity Digital Dollar. Mike O’Reilly, head of Fidelity Digital Assets, called stablecoins “foundational payment and settlement services”.