Payments
Circle Internet Group has agreed to acquire Singapore-based cross-border payments infrastructure firm Tazapay for $400 million in stock, according to a regulatory filing. The deal brings over $25 billion in annualized payment volume, more than 60 banking and fintech partners, and payment rails covering over 100 markets—roughly 60% of which already include stablecoins—to the USDC issuer. Circle CEO Jeremy Allaire said the combination will accelerate worldwide USDC adoption. The companies first partnered last year, and Circle led Tazapay's Series B funding. The transaction is expected to close in 2027, subject to regulatory approvals including from the Monetary Authority of Singapore. TD Cowen analysts noted limited integration risk given Tazapay's role as a Circle Payments Network design partner.
TabaPay announced Wednesday its intention to acquire Denver-based Transact Bank, backed by $155 million in financing led by FTV Capital. The deal would grant TabaPay a banking charter through the Office of the Comptroller of the Currency, pending Federal Reserve approval, and is expected to close in the fourth quarter of 2026. After closing, Transact will rebrand as TabaBank. The move follows TabaPay's terminated 2024 agreement to buy Synapse assets. TabaPay, which processes over $100 billion in payments annually and serves one-third of U.S. households, aims to integrate payments and banking capabilities under one roof while continuing to work with its network of partner banks.
The annual Jackson Hole Economic Policy Symposium focused on payments this year, with tokenized deposits taking center stage as a safer and more cost-efficient alternative to stablecoins. BIS General Manager Pablo Hernandez de Cos emphasized that tokenized deposits operate within the two-tier system, preserving the link between deposit-taking and credit provision, and offer better interoperability than stablecoins. Banks are developing tokenized deposit networks to improve cross-border payments, with The Clearing House planning to launch such a network. The discussion also touched on the historical use of commodities as currency in Wyoming and the state's new stablecoin initiative.
21 international financial institutions, including six major U.S. banks, announced on Tuesday that they will jointly support a stablecoin issuer planned to be established by the end of this year. The project will initially issue a U.S. dollar stablecoin, later expanding to G7 currencies such as the euro, targeting wholesale, institutional, and retail markets, with a launch expected in the first half of 2027.
Twenty-one financial institutions, including Bank of America, Citi, and Wells Fargo, announced on Tuesday their backing of a new company to support the issuance of a stablecoin. The company is set to be established by the end of this year, with the stablecoin expected to launch in the first half of 2027. The initiative will initially focus on a U.S. dollar-denominated stablecoin before expanding to other G7 currencies, emphasizing the euro. The consortium aims to offer a safe, robust, and trusted solution combining bank-grade compliance and risk management, targeting wholesale, institutional, and retail markets. The announcement comes ahead of the expected effective date of the Genius Act and follows the launch of a separate stablecoin, Open USD, backed by over 140 businesses. JPMorgan Chase is notably absent from both initiatives.
The Clearing House is preparing to extend its real-time payment network RTP to international cross-border payments, aiming to launch a pilot in the first half of 2027, with BNY confirmed to participate. Meanwhile, the Federal Reserve's FedNow system is also considering a similar cross-border expansion, but no clear timeline has been set.
The Clearing House will extend its RTP network across borders by the first half of next year, launching a pilot with BNY as an early participant. The move aims for a 2027 start, preceding the Federal Reserve's proposed international extension of FedNow. TCH updated RTP rules to allow one-leg-out payments, effective next month, with early adopter banks planning to pilot the capability early next year. BNY's Carl Slabicki cited global demand for 24/7 payments to and from U.S. beneficiaries, noting such real-time cross-border payments are already common in Australia, the U.K. and India.
Citi has entered into an agreement to acquire rewards platform Kard Financial to bolster its consumer cards business. The acquisition aims to combine Kard's technology, talent, and merchant relationships with Citi's scale and payments capabilities to strengthen its commerce ecosystem strategy, enabling more personalized rewards and offers. Terms were not disclosed, but Citi said they are not material to its financial results. Kard, founded in 2015, serves banks, fintechs, and marketers, and uses predictive AI and first-party transaction data. Citi's U.S. consumer cards business has about 70 million customers and generated $18.3 billion in revenue in 2025.
The Federal Reserve's proposal to amend Regulation J and allow intermediaries in FedNow transactions has garnered support from payment firms and fintech associations. The change would enable U.S. banks to use FedNow for cross-border payments via intermediaries or non-U.S. correspondent banks, similar to Fedwire but without time constraints. Commenters, including Stripe, Visa, and Wise, urge prompt finalization, citing the need for 24/7 cross-border instant payments and global competitiveness. Recommendations include standardized data formatting, clearer identification of intermediaries, and adjustments to rules for non-U.S. users. Challenges remain, such as the irrevocable nature of instant payments and fraud concerns, but proponents argue that future-proofing is essential.
In April, the Federal Reserve proposed allowing U.S. banks and credit unions to use FedNow for cross-border transfers through intermediaries. The payment industry broadly supports this, believing it will enhance U.S. international competitiveness, but some institutions recommend phased implementation and refinement of risk and compliance details.