Nium launches USDC funding program for cross-border payments

Nium’s strategic move with stablecoins

Nium, a Singapore-based cross-border payments company, has debuted a stablecoin-focused funding program using USDC (USD Coin) for client payouts. This is the latest move in the trend of integrating blockchain and stablecoins into global payment infrastructure.

The program allows Nium’s clients to fund international payment transactions using USDC instead of traditional bank transfers. According to Nium, using stablecoins reduces processing time from days to minutes while significantly cutting transaction costs.

Why USDC was chosen

USDC is a stablecoin issued by Circle, pegged 1:1 to the US dollar and backed by transparent reserve assets. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, USDC maintains stable value, making it suitable for commercial payments.

There are three main reasons Nium chose USDC:

First, USDC is supported on multiple blockchains (Ethereum, Solana, Stellar, Algorand), allowing Nium to optimize costs and speed depending on each payment corridor.

Second, USDC has high liquidity and can be easily converted to fiat in many countries. This is important because Nium’s clients need to receive money in local currency.

Third, Circle, the company behind USDC, already holds money transmitter licenses in the US and is in the process of going public, providing legal confidence for businesses.

Impact on international payment infrastructure

Current cross-border payment infrastructure relies heavily on correspondent banking networks (SWIFT), with processing times of 2-5 days and transaction fees of 3-5% per transfer. Stablecoins like USDC can cut both time and costs by using blockchain as an intermediary layer.

However, the biggest challenge remains on-ramp and off-ramp — the process of converting between fiat and stablecoins. Nium has addressed this by integrating USDC funding directly, while still supporting traditional fiat for clients not yet ready to transition.

Implications for Vietnam and Japan markets

For Vietnam, which has approximately $18 billion in annual remittances and significant international payment demand for imports and exports, Nium’s stablecoin solution could bring substantial benefits. Export businesses could receive payments from foreign partners faster and at lower cost.

In Japan, where major banks like MUFG and Sumitomo are actively researching blockchain for payments, Nium’s move could accelerate adoption. Japan also has one of the clearest regulatory frameworks for cryptocurrency, creating a favorable environment for stablecoin development.

Challenges and risks

Despite significant potential, stablecoins still face many challenges:

Regulation: Many countries still lack clear regulatory frameworks for stablecoins. Vietnam currently does not recognize cryptocurrency as a payment method, while Japan has clearer but still evolving regulations.

Counterparty risk: Circle, which issues USDC, must maintain sufficient reserves to back all circulating USDC. If there’s an issue with reserves (as happened with Silicon Valley Bank in 2023), USDC could lose its peg.

Adoption: Businesses need time to become familiar with stablecoins. Many companies remain cautious about technical and legal aspects, especially small and medium enterprises.

Conclusion

Nium’s move shows that stablecoins are gradually transitioning from speculative assets to utility tokens for real-world payments. If this trend continues, we may see other payment companies follow suit, creating faster and cheaper international payment infrastructure.

However, ultimate success depends on the ability to address regulatory challenges, counterparty risk, and adoption barriers. For Vietnam and Japan, this represents an opportunity to upgrade international payment infrastructure, but careful preparation on the legal and business education fronts is essential.

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Source: Nium Debuts USDC Funding for Client Payouts — PYMNTS, August 30, 2026