New Consortium Launches to Standardize Blockchain Payment Processes

Seven major cryptocurrency firms have announced their collaboration to create the Blockchain Payments Consortium (BPC), a strategic effort to establish common standards for cross-chain stablecoin transfers. This initiative comes amid a booming year in crypto transfer volumes, with recent data showing stablecoin transactions exceeding $3.7 trillion in just the last 30 days — outperforming traditional payment networks like Visa and Mastercard in 2024.

The participating organizations — Fireblocks, the Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs, and Monad Foundation — aim to develop a comprehensive framework that combines blockchain technology with the data requirements typical of conventional payments. This move is seen as a vital step towards addressing fragmentation and improving the overall user experience when moving between traditional and blockchain-based financial systems.

The BPC’s vision is to enable faster, more affordable cross-border payments and remittances, fostering deeper integration between blockchain ecosystems and traditional finance sectors. It also aims to establish a regulatory-compliant, interoperable framework that can serve financial institutions, enterprises, and other organizations looking to operate seamlessly across borders.

According to the consortium’s manifesto, the initiative intends to act as a bridge between blockchain communities, regulators, and traditional financial institutions, promoting cooperation and consistent compliance across jurisdictions. The goal is to reduce friction, foster wider adoption, and unlock the full potential of blockchain rails in the global payments landscape.

Framework hopes to spur adoption

Raja Chakravorti, Chief Business Officer of the Stellar Development Foundation, described the alliance as “a crucial step forward in maturing our industry,” emphasizing the importance of standardization amidst rapid growth. Fireblocks echoed these sentiments, highlighting that a lack of a shared language for blockchain payments has led to fragmentation and missed opportunities. Ran Goldi, Fireblocks’ senior vice president of payments, stressed that while industry adoption is increasing, greater collaboration remains essential to realize the full potential of crypto-based payments.

The collective efforts of these firms mark an important milestone toward maturity within the crypto markets, signaling a move toward greater interoperability and less fragmentation. As regulatory clarity improves and blockchain adoption accelerates, initiatives like the BPC are likely to play a pivotal role in shaping the future of digital payments.

This article was originally published as New Consortium Launches to Standardize Blockchain Payment Processes on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.