ClearBank Europe has launched its Digital Asset Rails capability to provide programmable liquidity for cross-border settlements.

The service is live and being used by clients for cross-border payment flows, with USDC to be offered later in the year.

The capability allows regulated institutions, including electronic money institutions, payment institutions, and banks, to use stablecoin-based transfers with fiat payouts via SEPA Instant through established banking rails.

The system functions as a programmable liquidity capability.

It enables clients to convert fiat funds into EURC, a MiCA-compliant euro-denominated stablecoin issued by Circle’s regulated e-money institution in the European Union.

Value moves through the network, returns to fiat, and ClearBank executes real-time payouts via SEPA Instant.

ClearBank provides the underlying regulated banking layer, which includes fiat account infrastructure and access to SEPA Instant.

This model aims to bring improved liquidity efficiency and reductions in the need for prefunding across multiple markets.

MiCA-regulated firms with non-retail use cases will also be able to transfer funds through the digital asset infrastructure.

The initiative builds on the status of ClearBank Europe as the first Dutch credit institution to complete the MiCA notification process to offer digital asset services.

While the service targets European clients initially, the bank has the scope to expand the opportunity internationally over time.

“This launch is a further step forward in how we deliver on our purpose to unlock our clients’ potential,”

said Mark Fairless, Group CEO, ClearBank.

“By combining our cloud-native platform with regulated banking, we are removing friction from cross-border flows and giving clients a more effective way to control and deploy liquidity.”

Featured image credit: Edited by Fintech News Switzerland, based on image by brilian via Magnific