- Circle CPN: an open payment Infrastructure as an alternative to Rippl
- CPN architecture is based on off-chain orchestration with finality on public blockchains.
- It is designed for banks and financial institutions, focusing on cross-border payments.
- Settlements are executed in USDC and EURC 24/7, bypassing SWIFT and correspondent banking networks.
- Only licensed and regulatorily compliant financial institutions are eligible to participate
- Over 20 organizations have already joined CPN, including WorldRemit and dLocal — both operating on Ripple corridors
Circle, the issuer of USDC and EURC, has introduced CPN — an open settlement infrastructure positioned as a stronger alternative to Ripple, aiming to serve banks, financial institutions, and the cross-border payments sector. Participation is limited to licensed and regulatorily compliant financial institutions that meet local regulatory requirements and AML/KYC standards.
CPN itself does not require licensing, as it does not provide custody. Instead, it offers off-chain orchestration with settlement finalized on public blockchains. Later, CPN is expected to transition to a smart contract-based protocol with expanded functionality.
Most importantly, it stands as an open and transparent alternative to RippleNet — and more than 20 organizations have already joined CPN, including WorldRemit and dLocal, both of which operate within Ripple corridors.
CPN Technical Features and Capabilities
Let’s take a closer look at the problem Circle is aiming to solve with its CPN. Cross-border payments through systems like SWIFT have several structural drawbacks, namely:
- They can be slow, involving multiple counterparties and additional processing steps.
- They create dependency on infrastructure and those who control it — which has been especially evident in recent years during armed conflicts and sanctions.
- They are difficult to modernize, often relying on legacy components that hinder the implementation of new functionality demanded by the industry.
The Circle Payments Network (CPN) offers next-generation payment infrastructure designed for direct use in interbank and cross-border settlements, relying on stablecoins for liquidity and public blockchains as the universal final settlement layer. Transactions are processed 24/7/365, without reliance on banking hours or settlement windows — a particularly important feature for emerging markets where CPN can eliminate barriers to dollar-based liquidity.
- Wallet-to-Wallet Payments — clearing between payment providers
- Bank-to-Bank Transfer — direct cross-border transfers settled in stablecoins
- Real-Time Merchant Payouts — immediate payouts to clients and merchants
- On-Chain Ledgering — synchronization of payment obligations with on-chain ledgers
It is important to note that CPN uses an off-chain orchestration layer, which aggregates messages between participants and generates signed instructions that are then transmitted to public blockchains like Ethereum, Solana, Avalanche, and Base.
CPN does not require licensing, as it does not involve custodial functions or direct asset management. It is positioned as a neutral transport layer where payment occurs strictly in digital dollars and euros (USDC and EURC), while compliance responsibilities lie with the participants — not with the platform itself.
In the future, however, CPN is expected to transition into a smart contract-based protocol, introducing additional functionality such as:
- Provable finality
- Native FX routing for multi-currency payment flows
- Reversals and deferred payment
- Modular liquidity coordination layers
Positioning of CPN Versus RippleNet and Community Commentary
Although still in an early phase, CPN has already onboarded over 20 organizations, including WorldRemit and dLocal — both of which are known to operate within Ripple corridors.
Key industry figures have already made direct comparisons, highlighting that this open system could present a serious challenge to Ripple’s closed solution for cross-border payments.
Ian Lee, co-founder of Syndicate DAO, stated:
“This is going after what Ripple and XRP were supposed to, but with stablecoins. Has a much better chance at being adopted since it is more compatible with existing financial institutions’ business models.”
Community member @Mr_Xoom commented:
“This is huge. Circle just announced CPN, a competitor to Ripple payments (aka ODL). Will be fun to see the competition. Competition results in more growth & innovation.”
Conclusion
The launch of CPN is not just another payment product but an attempt to build an open, globally scalable, and regulatorily compatible settlement infrastructure — an alternative to SWIFT, and other centralized systems.
The question is no longer whether Circle will compete with Ripple — but how fast the market will adapt to a new foundational layer. It’s now fair to say that Web3 has delivered infrastructure-grade solutions — and more than one — which, only five years ago, might have seemed like a distant vision.
