Arf and Tempo launch a new payment corridor
Global provider of stable treasury, working capital finance and cross-border settlement Arf has partnered with European monetary service Tempo Payments to launch a payment corridor via the Stellar network, from Europe to the Philippines.
Stellar USDC, a digital currency issued by Circle, is at the heart of the Arf / Tempo collaboration. Tempo now accepts fiat euros from senders and converts them to stellar USDC, then Arf transfers the money to a Filipino partner to be converted to local fiat upon receipt.
“By partnering with trusted financial institutions like Tempo, Arf enables its clients to conduct compliant cross-border transactions,” Caroline Young, content creator and editor for the Stellar Foundation, wrote in a blog post on Monday. (October 4). “In combination with high transaction speeds and near zero transaction fees on Stellar, Arf provides Tempo with instant value transfer through Stellar USDC and secures mid-market exchange rates with local Money Service Businesses (MSBs). and anchors in recipient countries. “
Arf uses Stellar USDC in various parts of the world to link payments to local partners. By expanding access to Stellar USDC across multiple geographies, Arf acts as an intermediary that can link with local payment partners in many countries, providing a simpler option for Stellar anchors and licensed MSBs.
Related news: White House seeks settlement on Stablecoin
Last week, the White House singled out stablecoins for regulations similar to mandates imposed on banks. The Biden administration wants Congress to pass legislation for a charter suitable for cryptocurrency companies that issue stablecoins, but could also require stablecoin companies to register as financial institutions.
Stablecoins, including Tether, Binance, and Circle’s USDC, are backed by the US dollar. Some lawmakers fear that stablecoins could trigger instability if holders are wary of the value of these underlying assets.
The White House recommendations will likely be part of a report later this month from the President’s Financial Markets Task Force (PWG), a Treasury Department committee.