Circle pushes blockchain to modernize $38B in global aid payments

Circle Foundation has awarded its first international grant to the UN’s Digital Hub of Treasury Solutions (DHoTS), supporting efforts to streamline value transfers, reduce costs, and enable secure, real-time access to global financial markets.

The company announced at the World Economic Forum’s Annual Meeting in Davos on Wednesday. However, it did not reveal the amount of funding or the type of grant provided.

Nonetheless, the funding builds on the firm’s 2022 collaboration with UNHCR and DHoTS, which enabled USDC payments to Ukrainians forced from their homes. Besides its support to the UN, it comes just a month after it established the Circle Foundation in December.

Circle pushes blockchain to modernize $38B in global aid payments

Globally, roughly $38 billion in humanitarian assistance still flows through traditional banking systems that are slow, expensive, and opaque. The Circle Foundation grant will support DHoTS in deploying digital payment technologies that can significantly speed up cross-border transfers and enhance transparency.

The philanthropic arm of Circle Internet Group, the issuer of USDC, one of the world’s largest regulated stablecoins, has pledged funding to help integrate blockchain-based financial infrastructure into the UN system’s aid payments. The move could significantly reduce the time, cost, and complexity of distributing billions of humanitarian funds each year.

Speaking on the Circle Foundation grant, UN Development Programme administrator Alexander De Croo said using stablecoins would allow the UN to get more value from each dollar amid budget constraints. It added that their partnership with Circle will make digital payments more secure and efficient.

Elisabeth Carpenter, Chief Strategic Engagement Officer at Circle and Founding Chair of Circle Foundation, also remarked, “Modern humanitarian finance needs modern infrastructure. By helping DHoTS integrate digital financial infrastructure, including regulated stablecoins with embedded regulatory financial risk management, compliance, and integrated AI-enabled controls, we can help make aid faster, more transparent, and more accountable across the entire UN system.

Similarly, Barham Salih, the UN Refugee Agency high commissioner, said: “This is about using technology to uphold dignity and choice for people forced to flee, while maximizing impact for every dollar entrusted to us.”

Overall, Circle aims to work with the international agency to deliver faster cross-border transfers, seamless local currency conversions, improved transparency, programmable payments that reduce manual work, and broader upgrades to core systems.

Hong Kong revealed it would issue stablecoin licenses in Q1 2026

Currently valued at over $312.7 billion, stablecoins are increasingly used for everyday purchases, commercial transactions, and storing value globally. Reports indicate that stablecoin payment flows could surge at an 81% annual growth rate, reaching $56.6 trillion by 2030.

At the World Economic Forum, Hong Kong even announced it would grant a set of licenses to stablecoin providers in the first quarter of this year. The authorities have not announced which stablecoin companies will receive licenses first. By September 2025, 36 companies had submitted applications. The list of applicants includes a collaboration between Standard Chartered, Animoca Brands, and HKT. However, earlier participants, such as Alipay and JD.com, were reportedly told by mainland authorities to stop applying for Hong Kong stablecoin licenses. 

Moving forward, stablecoin firms will be expected to receive approval from the Hong Kong Monetary Authority and comply with rules on reserve assets, par-value redemptions, client fund segregation, and anti-money laundering. This will mark the first set of licenses issued since Hong Kong’s new stablecoin regulatory framework came into effect on August 1 last year.

Within the cryptocurrency industry, figures like Vitalik Buterin have advocated for more resilient, decentralized stablecoins that don’t rely heavily on the U.S. dollar. Paul Faecks, CEO of Plasma, also said that stablecoin development should aim to provide a robust, neutral infrastructure that anyone can use for global payments for individuals and retailers.

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