Article Summary
- Formation of the Blockchain Payments Consortium (BPC) by seven major crypto firms.
- The BPC aims to establish common standards for cross-chain stablecoin transfers.
- Stablecoin transfer volumes exceeded Visa and Mastercard combined in 2024.
- The BPC seeks to streamline cross-border payments and integrate blockchain with traditional finance.
Formation of the Blockchain Payments Consortium
Following a banner year in 2024, where stablecoin transfer volumes outpaced those of Visa and Mastercard, seven leading cryptocurrency firms have united to forge common standards for cross-chain stablecoin transfers. Fireblocks, the Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs, and Monad Foundation announced on Thursday their collaboration to form the Blockchain Payments Consortium (BPC).
Consortium's Objectives
The group intends to create a “common framework that enhances blockchain transactions with traditional data requirements of traditional payments.” The BPC stated in its manifesto, “Blockchain rails are reshaping the global payments landscape. But for blockchain payments to reach full potential, we must address the inconsistent and fragmented experiences individuals and institutions face when moving between traditional payments and blockchain.”
Key Metrics
Stablecoin transfer volumes have increased by 4.36% in the last 30 days, with adjusted transaction volume reaching $3.7 trillion, according to blockchain analytics platform Artemis Terminal. For the entirety of 2024, the total reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.
Framework Aspirations
Among the BPC's primary objectives is enabling faster, lower-cost cross-border payments and remittances, while also integrating blockchain ecosystems into traditional finance and aligning with regulatory bodies. The BCP stated that “This will enable financial institutions, enterprises, and other organizations to build systems that work seamlessly across networks and borders.” It further added that it wants to “act as a bridge between blockchain ecosystems, regulators, and traditional financial institutions; offering a consistent, interoperable framework for compliance across jurisdictions.”
A Critical Step Towards Maturity
Raja Chakravorti, chief business officer at Stellar Development Foundation, described the alliance of crypto firms as “a critical step forward in maturing our industry.” Fireblocks added that there is “no shared language for blockchain payments,” which results in “friction, fragmentation, and missed potential.” Ran Goldi, senior vice president of payments at Fireblocks, noted that the industry has begun to see wider adoption, but further collaboration is essential. “Over the last 18 months, our industry has achieved mainstream adoption, with payments at the forefront. As more established players enter the space, improving how we collaborate, coordinate, and operate together is essential,” he said.
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