As the banking sector continues to unbundle services, new technologies are improving upon products only previously offered by traditional financial institutions. Stellar USDC and FinClusive’s new stablecoin-focused banking partnership will enable businesses to access and leverage digital currency instantly while staying compliant. This holistic approach to incorporating compliance-as-a-service (CaaS) and accounts and payments (A&P) creates confidence among market participants in operationalizing crypto-based transactions and sets the stage for further innovations. Together, Stellar USDC and FinClusive are creating solutions to facilitate the future of banking.
FinClusive’s A&P application acts as a US-based on/off ramp for virtual asset transactions and offers a comprehensive and embedded CaaS solution, making it ideal as a USDC anchor for cross-border transactions while ensuring essential risk and compliance controls. Not only does FinClusive integrate numerous applications to allow customers to make payments with USDC, but it also covers the Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements related to transactions with and between other anchors and fintech companies who want to connect to and interact within Stellar in a regulatory-compliant way.
FinClusive’s integration of USDC means that businesses can leverage the world’s leading digital dollar stablecoin immediately. FinClusive has observed an increase in businesses preference in transacting in stablecoins, especially those backed by major currencies or currency baskets. The liquidity, stability, and execution characteristics of any currency are what instill confidence among market participants and empowers the movement of money. Thanks to USDC, businesses using FinClusive can worry less about enduring prolonged settlement times or fluctuations in the value of their transactions.
Non-bank entities are increasingly providing services that were once the domain of traditional financial institutions, such as student loans, mortgages, and payments. However, banks remain important to secure insured deposits (whether directly or through an intermediary) and to access the official payment rails of ACH and SWIFT. Interoperability between these traditional services and growing alternative channels, while retaining essential risk and compliance protocols, will remain a key driver of market oversight and regulation, and as such determine the success of new financial services entrants.
To become a fully robust financial services provider, organizations need the following:
1) Bank relationships and/or access to official payment rails.
2) Ledger system for balance and transaction management.
3) Easily operable customer-facing interface.
4) Essential compliance and anti-fraud controls.
However, new financial entrants often find it challenging to ensure their regulatory governance, risk, and compliance frameworks are robust and will withstand growing regulatory scrutiny. As they continue to scale their services and operate globally, financial crimes compliance (FCC) frameworks need to be more universally applicable, reflect the operational realities of this globalized system, and incentivize self-governance for the benefit and security of all.
Compliance exists to protect consumers’ and businesses’ financial activities and ensure the integrity of a continually evolving financial ecosystem. Unfortunately, efforts to strengthen FCC controls so far have continued to unintentionally exclude many from accessing and participating in the financial marketplace. As FinClusive continues to integrate USDC into its product suite, they do so with the logic that embedded-compliance will open the door to true financial inclusion.
By offering CaaS and A&P services, FinClusive empowers both traditional financial institutions and crypto exchanges, non-bank financial institutions, peer-to-peer, and other service operators to provide services to those underserved or excluded from the financial system. FinClusive empowers businesses to address the regulatory challenges in full confidence that they are compliant with the global standards to combat illicit finance, and provides the tools to empower themselves — and their clients — to safely store and move value. With the incorporation of USDC, FinClusive is excited about the enhanced stability and security that will accelerate financial inclusion further.