New Crypto Alliance Aims to Establish Unified Standards for Blockchain Transactions

In 2024, seven prominent crypto firms formed the Blockchain Payments Consortium (BPC) to develop unified standards for crosschain stablecoin transactions. As blockchain payment volumes surpassed those of traditional giants like Visa and Mastercard, the BPC aims to address the challenges of fragmented experiences between blockchain and traditional financial systems. This collaboration aspires to facilitate faster, cost-effective payments while ensuring compliance with regulations for better integration of blockchain in finance.

Key Takeaways

Formation of BPC: Seven firms, including Fireblocks and the Solana Foundation, have launched the Blockchain Payments Consortium to standardize blockchain transactions.
Growth in Stablecoin Volume: In 2024, stablecoin transfers exceeded $27.6 trillion, outpacing Visa and Mastercard's volumes.
Objectives of the Consortium: The BPC seeks to enhance global payments by providing a consistent framework that integrates blockchain with traditional finance.
Industry Collaboration: Experts emphasize the need for a common language in blockchain payments to reduce friction and improve interoperability.

New crypto group aims to make unified standards for blockchain transactions

New Crypto Alliance Aims to Establish Unified Standards for Blockchain Transactions

In 2024, seven leading crypto firms have come together to create common standards for crosschain stablecoin transfers. This coalition, known as the Blockchain Payments Consortium (BPC), includes Fireblocks, the Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs, and Monad Foundation. This initiative follows a remarkable year in which the volume of transfers in the crypto space exceeded that of major card issuers, Visa and Mastercard.

The BPC's primary goal is to develop a “common framework that improves blockchain transactions, integrating the necessary traditional data requirements from conventional payments.” The organization highlights the transformative impact of blockchain technology on the global payments landscape. However, to fully realize its potential, it is essential to tackle the fragmented and inconsistent experiences faced by users and institutions when transitioning between traditional payments and blockchain technologies.

Source: Blockchain Payments Consortium

As per blockchain analytics platform Artemis Terminal, stablecoin transfer volumes have increased by 4.36% over the last month, reaching an impressive $3.7 trillion in adjusted transaction volumes. For the entire year of 2024, overall transfers summed up to $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.

Goals for Better Adoption in Payments

The BPC's objectives include enabling quicker and lower-cost cross-border payments and remittances, along with better integration of blockchain ecosystems into traditional finance while aligning with regulatory standards. According to the BPC, this alliance will empower financial institutions, businesses, and other organizations to develop systems that function seamlessly across various networks and countries. The consortium aims to "act as a bridge between blockchain ecosystems, regulators, and traditional financial institutions,” providing a coherent and interoperable compliance framework across different jurisdictions.

Related: Elixir Barnes deUSD stablecoin discontinued following Stream's $93 million loss.

A Critical Step Toward Industry Maturity

Raja Chakravorti, chief business officer at Stellar Development Foundation, remarked that the formation of this coalition represents “a critical step forward in maturing our industry.” Fireblocks highlighted the challenge of the absence of a shared language in blockchain payments, which leads to friction, fragmentation, and untapped potential.

Ran Goldi, Fireblocks’ senior vice president of payments, noted the increased adoption of digital currencies within the past 18 months, particularly in payment transactions. As more established entities enter the industry, fostering improved collaboration and coordination is crucial.

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This new alliance is expected to play a pivotal role in shaping the future landscape of cryptocurrency and its integration into everyday financial systems.