ClearBank, the U.K.'s first new clearing bank in over 250 years, has entered into a strategic framework agreement with Circle Internet Group to become part of the Circle Payments Network. This collaboration signals a significant strategic shift for the neobank, which had previously considered launching its own stablecoin but encountered regulatory hurdles.
Through this partnership, ClearBank will be among the first European banks to integrate with the Circle Payments Network (CPN). This integration will provide its institutional clients with access to near-instantaneous global money movement capabilities, utilizing USDC and EURC. These are fully reserved stablecoins that adhere to the European Union's Markets in Crypto-Assets (MiCA) regulation.
From Independent Ambitions to Strategic Partnership
This collaboration represents a pragmatic redirection for ClearBank, which had been exploring the issuance of its own stablecoin. Mark Fairless, ClearBank's CEO, previously indicated to CNBC that the bank had been looking to develop its own digital currency but was "held back from launching one because of a lack of regulatory clarity" in the United Kingdom.
The U.K. has lagged behind both the U.S. and the European Union in establishing clear regulatory frameworks for stablecoins. While the Bank of England has plans to introduce stablecoin regulations by the end of 2026, this extended timeline has led to uncertainty for potential issuers. This delay appears to have influenced ClearBank's decision to partner with an established entity rather than navigate the complex regulatory landscape independently.
"Joining Circle Payments Network will be a significant milestone in ClearBank's evolution as a cross-border payments innovator," Fairless stated. "Circle is redefining how money moves globally, and this collaboration will bring together our strengths in regulated banking infrastructure with their leadership in digital currency technology."
MiCA Compliance Opens European Doors
The timing of this partnership aligns with the implementation of stringent cryptocurrency regulations in Europe. Circle was the first major global stablecoin issuer to achieve MiCA compliance, securing an Electronic Money Institution license from France's banking regulator in July 2024. This license permits Circle to issue both USDC and EURC throughout the EU.
Under MiCA, which became fully effective in December 2024, stablecoin issuers are required to maintain 100% reserves in segregated accounts, undergo regular audits, and publish detailed whitepapers. This regulation has significantly reshaped the European stablecoin market, leading to the delisting of non-compliant tokens like Tether's USDT by major exchanges and a surge in market share for compliant alternatives.
"We're delighted that ClearBank is planning to join Circle Payments Network," commented Sanja Kon, Circle's vice president for EMEA partnerships. "Our collaboration will expand access to USDC and EURC, enabling faster settlement, greater transparency, and new financial services built on open, programmable money."
Circle Mint: The Institutional Gateway
The collaboration between ClearBank and Circle will initially focus on broadening access to Circle Mint, Circle's institutional platform that allows financial institutions to mint and redeem stablecoins directly. Circle Mint has become a crucial infrastructure component for the stablecoin economy, facilitating near-instantaneous conversions between fiat currencies and digital tokens with competitive foreign exchange rates.
The platform supports minting and redemption in over 185 countries and provides institutional clients with 24/7 access to blockchain-based settlement. For ClearBank's clients, which include major cryptocurrency platforms like Coinbase and Kraken, as well as fintech companies and payment service providers, this integration has the potential to significantly reduce the time and cost associated with international transactions.
Beyond Payments: Tokenization and Treasury Services
ClearBank and Circle also intend to explore advanced use cases, including stablecoin-based treasury services and tokenized asset settlements. These applications could revolutionize how corporations manage liquidity and settle transactions, potentially diminishing reliance on correspondent banking networks, which often introduce delays of several days and significant costs to cross-border payments.
The World Bank estimates that cross-border payments still take longer than one business day to settle and incur costs exceeding 6%. These delays are attributed to multiple intermediaries, compliance checks, and fragmented operating hours across different jurisdictions. Stablecoin-based settlement could bypass many of these friction points.
A Competitive Landscape Heats Up
This partnership between ClearBank and Circle emerges as institutional adoption of stablecoins accelerates globally. Circle launched its Payments Network in April 2025, attracting design partners such as Standard Chartered, BCB Group, and numerous payment service providers across Latin America, Africa, and Asia.
Coinbase, Circle's primary revenue partner, has also made significant moves in stablecoin payments. The exchange launched Coinbase Business in October 2025 to offer B2B payment solutions and integrated USDC payments into Shopify's e-commerce platform. Coinbase shares a 50-50 revenue split with Circle on USDC-related income, creating a unique dynamic where partners also compete in certain market segments.
In parallel, traditional banking institutions, including JPMorgan Chase, Citibank, and Goldman Sachs, have announced plans to explore joint stablecoin initiatives, recognizing the technology's potential to transform institutional payments and asset tokenization.
ClearBank's European Expansion
The partnership with Circle complements ClearBank's broader international expansion strategy. The bank obtained a Dutch banking license in 2024, enabling it to passport its services into 15 European countries and offer euro accounts and SEPA payments across the continent. ClearBank currently serves over 250 institutional clients and processes hundreds of millions of payments annually.
Founded in 2017, ClearBank disrupted the U.K.'s concentrated clearing market by developing cloud-native banking infrastructure specifically designed for digital-first financial institutions. Its collaboration with Circle represents the next phase of this model, bridging traditional banking infrastructure with blockchain-based settlement capabilities.
As stablecoin regulations continue to evolve worldwide, the ClearBank-Circle collaboration may serve as a model for how traditional financial institutions can integrate digital currency infrastructure without the complexities and risks associated with launching proprietary tokens. For European businesses and financial institutions, this partnership promises faster, more cost-effective access to global payments through regulated, compliant stablecoins, potentially accelerating the transition from legacy banking systems to blockchain-based settlement.
The partnership is slated to be implemented in phases throughout 2025, with ClearBank progressively granting its client base access to Circle Mint. Neither company has disclosed the specific financial terms of the agreement.