ClearBank Europe has launched a new service that enables regulated financial institutions to move funds using stablecoins while settling back into fiat currency through SEPA Instant.
Called Digital Asset Rails, the service allows clients to convert fiat funds into EURC, transfer value using the stablecoin, and redeem the funds back into euros for payout through existing banking infrastructure. According to ClearBank, the service is already live and being used for cross-border payment flows. Support for USDC is planned later this year.
Targeting cross-border liquidity
The service is available to banks, payment institutions, electronic money institutions and MiCA-regulated firms with non-retail use cases.
ClearBank says the model is designed to support cross-border settlement and liquidity management. The bank argues that using stablecoins as an intermediate transfer mechanism could reduce the need for prefunding across multiple markets. The company also states that additional currencies could be supported in future through stablecoin-based foreign exchange.
EURC, the stablecoin used in the service, is issued by Circle’s regulated e-money institution in the EU and is compliant with the EU’s Markets in Crypto-Assets (MiCA) framework. ClearBank provides the fiat account infrastructure and access to SEPA Instant.
In a statement accompanying the launch, ClearBank Europe CEO Tristan Kirchner said the service offers institutions “a new way to manage cross-border liquidity and settlement” by connecting digital asset transfers with fiat payouts through SEPA Instant.
