The USDC and EUROC stablecoin cross-border settlement system from SAP has launched a testnet.
The German enterprise software company SAP has unveiled a sample of its Digital Currency Hub (DCH) technology, which enables international payments using the stablecoins USDC and EURC.
The introduction of SAP’s DCH has been welcomed as significant news in the industry by Circle, the payment technology business that issues USDC and EUROC stablecoins. He added:
“SAP is the world’s largest provider of Enterprise Application Software, counting 99/100 of the world’s largest companies as customers. Their customers generate 87% of total global commerce equating to approx. $46T annually.“
Even though USDC is supported by several blockchains, including Algorand, Solana, and TRON, during the preview period the DCH system will largely use Ethereum for transactions. On the other hand, EUROC is accessible on Ethereum and Avalanche and has a reduced token circulation.
The difference in token circulation between the two stablecoins is highlighted by the fact that whereas the current circulating supply of USDC is $28.2 billion, that of EUROC is €47.9 million ($52.3 million).
SAP enters cross-border payments market
Cross-border payments provide substantial issues for firms of all sizes, according to Sissi Ruthe, a product expert at SAP. These payments are expensive and can take up to seven days to clear. The fees associated with them can surpass $50. The procedure is further made more difficult by the lack of openness regarding the progress of transactions.
Blockchain technology and digital currency, Ruthe stressed, provide a solution to these issues. Businesses can settle payments quickly by using stablecoins like USDC or EUROC rather than relying on conventional banking networks, thus enhancing the effectiveness and speed of international trade.
The “Test Drive” that SAP wants to hold will allow participants to interact with a testnet that simulates USDC. This program intends to demonstrate the simplicity of cross-border payments made with digital currency and to give first-hand experience of the stablecoin settlement procedure.
Through this testing stage, SAP hopes to show the potential of digital currencies and how they may change cross-border payments, opening the door for future financial transactions that are more automated and easily accessible.