Circle Foundation has announced new grants to support the United Nations Development Programme and the World Food Programme as they explore digital payment systems, including regulated stablecoins, for development projects and humanitarian aid.
The initiative is designed to test whether digital payments can make the delivery of funds faster, cheaper, and more reliable, particularly in regions where traditional banking services are limited or expensive.
The grants will support separate projects at UNDP and WFP, with each organization focusing on a different stage of stablecoin payment adoption.
Circle Foundation Supports UNDP and WFP Digital Payment Programs
According to Circle Foundation’s September 25 announcement, the grants will help UNDP and WFP study how regulated payment stablecoins could be used alongside existing financial systems.
UNDP will focus on expanding lessons learned from previous digital payment pilots and making those solutions available to more country offices.
WFP, meanwhile, will concentrate on building the infrastructure, compliance systems, and partnerships needed to test stablecoin-powered payment corridors in real-world humanitarian operations.
The projects are not intended to replace traditional banking entirely. Instead, they aim to provide additional payment options in locations where existing systems may be costly, slow, or difficult to access.
UNDP to Launch Digital Asset Innovation Pool
As part of the grant, UNDP plans to establish a Digital Asset Innovation Pool.
The new program will help UNDP country offices evaluate whether regulated stablecoins and other digital payment tools are suitable for specific development programs.
The pool will provide guidance on local regulations, operational requirements, payment safeguards, and recipient protection.
It will also help UNDP measure important factors such as payment speed, transaction costs, and the number of people reached through digital payment programs.
The goal is to give UNDP teams more flexibility when conventional payment methods face challenges such as high fees, delays, or limited financial access.
Previous UNDP Payment Pilots Show Potential
UNDP has already tested digital payment systems in several countries.
In Aleppo, Syria, the organization used digital payments in a cash-for-work initiative. UNDP reported that the project reduced distribution costs from around 10% to approximately 2%.
In Haiti, UNDP tested a payment system designed to continue operating in areas with limited internet and mobile connectivity. According to the agency, the system was able to keep processing payments during a cellular network outage.
Other projects included a program in Guatemala that connected remittances with community investment and an initiative in The Gambia that linked mobile wallets with existing cash-agent networks.
These earlier projects will provide useful lessons for the new Digital Asset Innovation Pool.
WFP to Test Stablecoin Payment Corridors
The World Food Programme will use its grant to build the infrastructure required for stablecoin payment trials.
The funding will support governance frameworks, risk controls, treasury systems, reconciliation tools, and compliance processes.
These systems are especially important for humanitarian organizations because they must be able to track funds accurately from the moment money is sent until it reaches the intended recipient.
WFP also plans to connect its payment systems with local fintech companies, banks, and mobile-money providers.
This could allow recipients to access funds through financial services that are already available in their local markets.
WFP Plans Two to Three Country Trials
Over the next three years, WFP plans to test between two and three payment corridors.
These corridors will connect WFP’s digital payment infrastructure with local financial providers and payment networks.
The trials are expected to examine whether stablecoin payments can improve efficiency, transparency, and resilience in humanitarian operations.
The project will also include independent research into the cost and speed of these payment systems.
Another major objective will be determining whether stablecoin payments can operate reliably under the complex conditions often faced during humanitarian crises.
Stablecoins Could Improve Humanitarian Payments
Stablecoins are digital assets designed to maintain a relatively stable value, usually by being linked to a traditional currency such as the U.S. dollar.
For humanitarian organizations, their potential benefit lies in transferring value quickly across borders while reducing dependence on expensive or slow financial intermediaries.
However, stablecoin payments also introduce challenges.
Organizations must address regulatory compliance, local currency conversion, liquidity, cybersecurity, recipient protection, and financial risk.
That is why the UNDP and WFP initiatives will focus not only on payment speed but also on governance and operational safeguards.
How the Grants Fit Circle’s UN Strategy
The latest grants build on Circle Foundation’s previous work with United Nations organizations.
Earlier in the year, the foundation provided funding for the Digital Hub of Treasury Solutions, a platform launched by UNHCR in 2021 to modernize financial operations across UN agencies.
Around 15 organizations participate in the initiative, including UNDP and WFP.
Circle’s support for the platform has focused on areas such as cross-border transfers, local-currency conversion, and connections between different financial systems.
The new grants expand that effort by moving some of the work closer to real-world payment testing.
Circle Internet Group Supports the Foundation
Circle Foundation receives financial support from Circle Internet Group, the company behind USDC.
Circle Internet Group is listed on the New York Stock Exchange under the ticker CRCL.
The company has committed approximately 1% of its equity to support Circle Foundation’s activities.
Previous filings indicated 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 by Fidelity Charitable.
The World Food Programme-related grant was awarded to World Food Program USA, with the funding intended to support WFP and its Innovation Accelerator.
What Comes Next for the Stablecoin Trials?
The next phase will focus on turning earlier experiments into more structured and scalable payment systems.
For UNDP, that means helping more country offices evaluate and adopt digital payment solutions where they make sense.
For WFP, the focus will be on building the necessary infrastructure and launching country-level payment trials over the next three years.
The results could provide valuable evidence about whether stablecoins can reduce payment costs, shorten settlement times, and improve access to humanitarian funds.
At the same time, the programs will need to demonstrate that digital payments can meet strict requirements for security, compliance, transparency, and recipient protection.
If successful, the projects could help establish a clearer framework for how regulated stablecoins may be used in future development and humanitarian payment programs.
