Circle has announced its acquisition of Singapore-based payment platform Tazapay for $400 million, a move aimed at enhancing the presence of USDC in emerging markets. This information comes from CoinDesk, which cites expert opinions on the transaction.
The primary asset of this deal is Tazapay’s established payment infrastructure and local connections, which would take years to develop from scratch.
Circle Acquires Established Infrastructure
Circle has finalized a deal to acquire Tazapay for approximately $400 million, with payments set to be made in Circle stock. The deal is expected to close in 2027, pending regulatory approvals.
Tazapay specializes in cross-border B2B payments and operates in over 100 markets. The company processes more than $25 billion annually, with around 60% of transactions involving stablecoins. Tazapay also boasts partnerships with over 60 banks and fintech companies.
This acquisition allows Circle not only to broaden its USDC user base but also to tap into ready-made channels for fund transfers within local financial systems.
Circle is promoting its cross-border payment platform, Circle Payments Network (CPN), and its proprietary L1 blockchain, Arc, designed for stablecoin operations.
“After the acquisition, Circle will achieve vertical integration with a last-mile delivery operator, which could drive increased sales volumes for CPN,” explained Owen Lau, Managing Director at Clear Street.
“Years in the Making”
Experts emphasize that access to local infrastructure is the main reason behind this acquisition. Martin Benkitis, co-founder and CEO of crypto liquidity provider Gravity Team, pointed out that emerging markets are becoming the next competitive battleground for stablecoins.
He noted that through Tazapay, Circle gains access to payment rails and banking connections that would otherwise take years to establish independently.
“Transactions using stablecoins are becoming a key infrastructure for global trade, but for USDC to be effective everywhere money flows, it must be connected to local currencies, through local channels, and via banking relationships that take years to build,” confirmed Irfan Ganchi, Vice President at Circle, to CoinDesk.
Focusing on Emerging Markets
Circle has consistently worked to expand its payment infrastructure. Acquiring Tazapay positions the company to access Asian and other developing markets, where cross-border payments remain fragmented, and the use of stablecoins can reduce the number of intermediaries involved.
“A significant portion of demand is coming from the Asia-Pacific region, and Tazapay is based there—so yes, geography matters,” said Ganchi.
Circle’s main competitor, Tether, has frequently emphasized its focus on serving unbanked clients in developing countries.
The issuer of USDC adheres to U.S. regulatory standards and has obtained a European MiCA license. In contrast, Tether has issued a separate coin, USAT, to establish a presence in the U.S. market. The company halted operations in the EU in June due to new regulations, but analysts report that this did not lead to a significant global outflow from USDT.
Source: CoinGecko.It is worth noting that Pablo Hernández de Cos, head of the Bank for International Settlements, has stated that stablecoins currently do not appear to be a reliable means of payment on an economic scale. He believes that tokenized bank deposits should form the foundation of a digital financial system.