Circle Foundation is expanding its support for blockchain-based payment systems through new grants to the United Nations Development Programme and the World Food Programme.
The funding will help both organizations explore whether regulated stablecoins and other digital payment tools can make development and humanitarian payments faster, cheaper, and easier to access.
Under the initiative, UNDP will focus on expanding lessons from earlier digital payment pilots, while WFP will build the infrastructure and risk controls needed to test stablecoin payments across several countries.
Circle Foundation backs UN digital payment projects
Circle Foundation announced the grants on September 25, saying the funding will support separate digital payment initiatives run by UNDP and WFP.
The projects are designed to examine how stablecoins and blockchain-based payment systems could improve the delivery of funds, particularly in regions where traditional banking infrastructure may be expensive, slow, or difficult to access.
Rather than replacing existing banking systems entirely, the organizations plan to test digital payments as an additional option.
UNDP will concentrate on scaling payment methods that have already been tested in earlier programs, while WFP will focus on building the systems, compliance processes, and partnerships needed before launching payment trials.
UNDP to launch Digital Asset Innovation Pool
A major part of the UNDP grant will go toward creating a Digital Asset Innovation Pool.
The initiative is intended to help UNDP country offices evaluate and use regulated payment stablecoins where they are suitable for specific development programs.
The pool will provide guidance on areas such as local regulations, operational procedures, consumer safeguards, and payment management.
It will also help UNDP measure important factors including transaction costs, payment speed, accessibility, and the number of people reached.
According to UNDP, the system could become particularly useful in areas where traditional payment methods create delays, high fees, or limited access.
However, the organization will continue to use existing banking and financial channels alongside the new digital payment tools.
Earlier UNDP blockchain pilots showed promising results
UNDP has already tested digital payment technology in several countries.
In Aleppo, Syria, the organization experimented with digital payments for a cash-for-work program.
UNDP also tested payment systems in Haiti that were designed to continue functioning even when internet or mobile connectivity was limited.
Another project in Guatemala explored how remittances could be connected with community investment programs, while a project in The Gambia linked mobile wallets with established cash-agent networks.
Earlier UNDP blockchain payment trials also produced measurable results.
In one Syria pilot, the organization reported that distribution costs dropped from around 10% to 2%.
A Haiti pilot reportedly continued processing payments during a cellular network outage.
The new Digital Asset Innovation Pool is expected to help UNDP country offices use lessons from these earlier projects in future programs.
WFP to test stablecoin payments in multiple countries
The World Food Programme will use its grant for a different part of the digital payments process.
Rather than immediately expanding an existing payment model, WFP will first develop the infrastructure and controls required for stablecoin-based payment trials.
The funding will support work on governance, treasury management, reconciliation systems, compliance tools, and risk controls.
These systems are particularly important for humanitarian organizations because payments must be carefully tracked from the point funds are sent until they reach recipients.
WFP also plans to work with local fintech companies and mobile-money providers so digital payments can connect with financial services already available in local markets.
Two to three payment corridors planned
Over the next three years, WFP plans to test between two and three country payment corridors.
These trials will connect WFP’s payment infrastructure with local financial providers and market systems.
The goal is to measure whether stablecoin payments can improve efficiency, transparency, resilience, and accessibility in humanitarian operations.
The grant will also support independent research examining factors such as payment speed, costs, reliability, and overall effectiveness.
Bernhard Kowatsch, director of WFP Global Accelerator and Ventures, said the trials will allow the organization to explore regulated stablecoin payments in real-world settings.
The program is also expected to help WFP build the partnerships and operational experience needed to evaluate whether the technology is suitable for broader use.
Circle expands involvement in UN payment modernization
The latest grants build on Circle Foundation’s earlier work with United Nations organizations.
In January, the foundation announced its first international grant for the Digital Hub of Treasury Solutions.
The platform was launched by UNHCR in 2021 to help modernize financial operations across the UN system.
According to Circle, 15 organizations participate in the initiative, including UNDP and WFP.
Circle’s earlier support focused on improving areas such as cross-border payments, local currency conversion, and connections between different financial systems.
The latest funding extends that work by supporting more direct testing of digital payment infrastructure and regulated stablecoins.
Circle Internet Group provides funding support
Circle Foundation receives financial support from Circle Internet Group, the U.S.-listed company behind major stablecoin infrastructure.
Circle Internet Group trades on the New York Stock Exchange under the ticker CRCL.
The company has committed approximately 1% of its equity to support the foundation’s activities.
Previous filings showed that Circle’s board reserved up to 2,682,392 Class A shares for foundation contributions over a ten-year period.
Circle Foundation operates as a donor-advised fund managed through Fidelity Charitable.
For the WFP-related initiative, the grant is being made to World Food Program USA, with the funding supporting WFP and its Innovation Accelerator.
Stablecoins could play a larger role in humanitarian payments
The grants highlight growing interest in using regulated stablecoins for international aid and development payments.
Stablecoins may offer advantages in regions where traditional financial systems are slow, expensive, or difficult to access.
They can potentially reduce transfer costs, speed up cross-border transactions, and provide more transparent payment records.
However, humanitarian organizations must also address issues such as regulation, compliance, local currency conversion, consumer protection, and access to digital financial services.
The UNDP and WFP projects are designed to test these questions in real-world environments before wider adoption is considered.
For now, Circle Foundation’s latest grants represent another step toward exploring how blockchain-based payment systems could support development and humanitarian programs around the world.
