Circle Supports Federal Reserve Payment Account

Circle Internet Financial supports the Federal Reserve's proposed Payment Account prototype, which aims to modernize the U.S. payments system by providing a payments-only pathway to essential Federal Reserve services, thus reducing friction and risk in a 24/7 high-throughput ecosystem. The proposal aligns with practices in the UK and EU, where payments institutions have access to central bank settlement services. Circle emphasizes the importance of a tightly scoped model that supports continuous payments, a flexible account structure to handle peak periods, and thoughtful expansion to enhance settlement resilience and reduce risk. The prototype is seen as a practical approach to improving direct settlement, reducing counterparty risk, and aligning with a 24/7 economy while maintaining the Federal Reserve's safeguards, thereby supporting a more competitive, inclusive, and secure payments environment. Circle is committed to engaging with the Federal Reserve to realize this vision and contribute to a more efficient and resilient U.S. payments system.