SAP opens testnet registration for cross border payments in stablecoins
The German enterprise software firm SAP has launched a preview of its Digital Currency Hub (DCH) system, enabling cross-border payments using USDC and EUROC.
Issued by payment technology firm Circle, the USDC and EUROC stablecoins are pegged 1-to-1 with the dollar and euro. Peter Schroeder, director at Circle, described the DCH news as “a big deal.” 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.“
Although USDC is available on nine blockchains, including Algorand, Solana, and TRON, Schroeder confirmed that the preview phase would use Ethereum only. EUROC has a much smaller token circulation than USDC. It is available on Ethereum and Avalanche.
The current circulations of USDC and EUROC are $28.2 billion and €47.9 million ($52.3 million,) respectively.
SAP takes on cross-border payments
Product expert at SAP, Sissi Ruthe, said cross-border payments are difficult for businesses of all sizes. They are expensive, costing up to $50, can take up to seven days to clear, and “you never know the status of the transaction,” she said.
Using digital money via blockchain technology could solve all these problems; Ruthe added that utilizing USDC or EUROC to settle payments instead of the traditional banking network does the job in minutes.
“Technically, each business partner requires a wallet which in the blockchain world is the equivalent of a bank account. These wallets can be held in self-custody, enabling cross-border payments without intermediaries.”
During the “Test Drive,” SAP will run a testnet comprised of test USDC for participants to experience the process of stablecoin settlement and “how easy cross-border payments with Digital Money will become in the future.”