Banking Circle expands stablecoin payments through OSL to 5 new currencies

Banking Circle, a leading B2B payment infrastructure provider in Europe, has announced an expanded partnership with OSL — a licensed digital asset exchange in Hong Kong — to support stablecoin-to-fiat payments across 5 new currencies. This marks a significant step in integrating digital assets into traditional payment infrastructure.

Expanding currency and geographic reach

According to the September 15, 2026 announcement, Banking Circle will provide stablecoin-to-fiat conversion for OSL across 5 additional currencies beyond the existing USD and EUR. While the specific list hasn’t been disclosed, sources close to the matter suggest these may include Asian currencies such as JPY, SGD, HKD, AUD, and GBP.

This move reflects the growing trend of using stablecoins for cross-border settlement, particularly in the Asia-Pacific region where international remittance demand is exceptionally high.

How the model works

The Banking Circle-OSL partnership operates as follows:

1. Transaction initiation: Businesses send stablecoins (USDC or USDT) to OSL
2. Conversion: OSL processes the stablecoin-to-fiat conversion through Banking Circle
3. Settlement: Banking Circle uses its partner banking network to settle fiat instantly
4. Compliance: The entire process complies with KYC/AML regulations in both Hong Kong and the EU

Michael Boel, co-head of Clearing Technology at Banking Circle, emphasized: “As instant payments, digital assets, and cross-border innovation reshape financial services, the payments industry is entering a new phase where stablecoins are no longer speculative assets but genuine payment infrastructure.”

Impact on Asian markets

This partnership has particular significance for Vietnam and Japan:

Vietnam

• Remittances: Vietnam receives approximately $18 billion in remittances annually, with average fees of 5-7%. Stablecoin settlement could reduce fees to under 1%
• B2B payments: Import-export businesses can settle with international partners in minutes instead of 3-5 days via SWIFT
• Fintech opportunity: Vietnamese fintech startups can build remittance and payment applications on this infrastructure

Japan

• Regulatory clarity: Japan has had a clear regulatory framework for stablecoins since 2023, creating favorable conditions for adoption
• Corporate adoption: Major corporations like Mitsubishi UFJ have developed their own stablecoins (Progmat), indicating real demand from the corporate sector
• Cross-border trade: Japan is a major trading partner of Vietnam; stablecoin settlement could enhance bilateral payment efficiency

Competition with traditional solutions

Banking Circle + OSL will compete directly with:

• SWIFT gpi: Still holds 70% market share in cross-border but is slow (1-3 days) and expensive (3-5% fees)
• RippleNet: Present in Asia but hasn’t deeply integrated with traditional banking
• Wise/Revolut: Popular for individuals but limited for large B2B volumes

The advantage of the Banking Circle + OSL model is combining the regulatory compliance of traditional banking with blockchain speed, addressing both legal requirements and efficiency demands from businesses.

Challenges and barriers

Despite significant potential, this model still faces several challenges:

1. Regulatory fragmentation: Each country has different stablecoin regulations, complicating global expansion
2. Banking integration: Many traditional banks remain hesitant to integrate with digital assets due to compliance concerns
3. Liquidity: Sufficient liquidity on both ends (stablecoin and fiat) is needed to ensure instant settlement
4. Trust: Businesses need time to trust a new model versus SWIFT, which has been proven over decades

Perspective from Fujigo

For fintech businesses in Vietnam and Japan, this represents an opportunity to build next-generation payment solutions on stablecoin infrastructure. Potential use cases include:

• Supply chain finance: Automating payments between cross-border suppliers
• Marketplace payments: Instant settlement for international sellers on e-commerce platforms
• Treasury management: Optimizing multi-currency cash flow for import-export businesses

Fujigo recommends that businesses closely monitor developments in this model and prepare their technical infrastructure to integrate when the regulatory framework becomes clearer.

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Source: Banking Circle to Power OSL’s Stablecoin-to-Fiat Payment Expansion Across Five Additional Currencies — Disruption Banking, September 15, 2026