Circle, a prominent issuer of stablecoins, has provided a grant directed towards enhancing digital financial services across the United Nations to improve the efficiency of humanitarian aid disbursements.
This initiative was disclosed during the World Economic Forum gathering in Davos, Switzerland, on Wednesday. The Circle Foundation announced that this inaugural international grant is intended to bolster the UN’s Digital Hub of Treasury Solutions (DHoTS) in its efforts to enhance monetary value transfers throughout the UN framework.
While specific details regarding the grant’s amount or structure were not disclosed, it builds on previous collaboration efforts between Circle and UNHCR, which aimed to facilitate USDC stablecoin payments for displaced Ukrainians in 2022.
Alexander De Croo stated that stablecoin solutions could empower the UN in maximizing the value of each dollar within constrained budgets. Circle highlighted that innovative financial systems, particularly through stablecoins, have the potential to optimize the effectiveness of humanitarian contributions, noting that $38 billion in yearly humanitarian aid depends on outdated systems.
Barham Salih remarked, “This is about using technology to uphold dignity and choice for people forced to flee, while maximizing impact for every dollar entrusted to us.”
Translation: „Es geht darum, Technologie zu nutzen, um Würde und Wahl für Menschen zu wahren, die gezwungen sind zu fliehen, während der Einfluss jeder Dollar maximiert wird, der uns anvertraut wird.”
Circle’s commitment to the UN follows the establishment of the Circle Foundation in December, aimed at advancing philanthropic efforts focused on financial resilience and inclusion.
Stablecoins Increasingly Integral in Global Financial Transactions
The stablecoin market has evolved into a $312.7 billion sector and finds pivotal use in daily transactions, commercial operations, and as a savings mechanism worldwide.
Earlier this month, Bloomberg Intelligence projected that stablecoin payment flows will surge at an 81% compound annual growth rate, reaching an estimated $56.6 trillion by 2030.
