Blockchain company Circle has announced the addition of Automated Clearing House (ACH) payments for USDC dollar-pegged stablecoin to the Circle API.
According to the company’s press release, the new addition will enable customers in the U.S. to electronically transfer funds between regulated banking institutions, pay bills, and withdraw balances from their bank accounts. Circle explained that using ACH payments represents a “happy medium” between using card payments and wire transfers.
Cryptocurrency exchange FTX has integrated the new ACH service to its platform to support the launch of new retail crypto brokerage products. Sam Bankman-Fried, the founder and CEO of FTX, said Circle’s APIs give the exchange the ability to offer the fastest possible settlement experience to its customers.
Circle has also partnered with Plaid, a company that specializes in online account security and verification. Plaid’s account verification process is set to prevent common errors like mistyping bank accounts and routing numbers while reducing fraud reversal risks.
All ACH payments will be automatically settled as USDC in users’ Circle accounts, while payouts will enable automatic conversion from USDC into ACH.