KEY TAKEAWAYS
- Circle Foundation has announced its first international grant to support the UN’s Digital Hub of Treasury Solutions, enhancing financial systems across the UN.
- The grant aims to streamline monetary transfers, reduce costs, and improve transparency and security in global humanitarian aid.
- Partnerships with UN agencies will leverage digital financial infrastructure, including stablecoins, to make aid delivery faster and more accountable.
Circle Foundation, a philanthropic initiative supported by Circle Internet Group, Inc., has announced its first international grant aimed at supporting the United Nations’ Digital Hub of Treasury Solutions (DHoTS). The announcement was made during a panel at the World Economic Forum’s Annual Meeting in Davos, Switzerland.
The grant is intended to streamline monetary value transfers across the UN system, reduce costs, enhance transparency, and enable secure, real-time access to financial systems and markets worldwide. DHoTS, founded by the UN Refugee Agency (UNHCR) in 2021, aims to create an integrated Financial Gateway using advanced banking and risk management technology to strengthen financial resilience across UN systems.
Under the strategic leadership of UNHCR, DHoTS has expanded to include 15 agencies, such as the United Nations Development Programme (UNDP) and the International Organization for Migration (IOM), with technical support from the United Nations International Computing Centre. Circle Foundation’s grant builds on its 2022 collaboration with UNHCR, which pioneered USDC-based aid payouts for displaced Ukrainians.
Advancing Humanitarian Aid with Digital Infrastructure
Elisabeth Carpenter, Chief Strategic Engagement Officer at Circle and Founding Chair of Circle Foundation, emphasized the importance of modern infrastructure in humanitarian finance. She stated that integrating digital financial infrastructure, including regulated stablecoins, can make aid faster, more transparent, and accountable across the UN system.
Barham Salih, United Nations High Commissioner for Refugees, highlighted UNHCR’s role as an early adopter of blockchain-based assistance. He noted that the Digital Hub of Treasury Solutions is scaling up with Circle Foundation’s support to benefit UN agencies and drive efficiency across the humanitarian sector.
Alexander De Croo, Administrator of the UN Development Programme, pointed out that the partnership between UNDP, UNHCR, and Circle will help make digital payments more secure and efficient. By using regulated stablecoins for program payments and cross-border transfers, the initiative aims to reduce costs, improve transparency, and build inclusive financial systems.
Impact on Global Humanitarian Aid
The global humanitarian aid system, which moves $38 billion annually, still relies on traditional financial systems. UNHCR pilots since 2022 have shown that digital financial infrastructure, including regulated stablecoins, can deliver assistance quickly and securely, resulting in significant cost reductions.
Circle Foundation’s support will enable DHoTS to facilitate near-instant cross-border transfers, reduce costs and delays, and improve transparency and accountability. The initiative also aims to automate manual processes and ease operational burdens, thereby maximizing the impact of every donor dollar.
For more information, the announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Circle Foundation has announced a grant to support the United Nations’ Digital Hub of Treasury Solutions (DHoTS), aiming to enhance digital financial infrastructure for global aid delivery.
Recent industry reports indicate that stablecoin adoption for humanitarian aid is accelerating due to regulatory clarity from the US GENIUS Act and STABLE Act. This aligns with Circle Foundation’s initiative to integrate stablecoins into UN systems, promoting faster and more transparent aid delivery.
A report highlights the Circle Foundation’s positive impact on UN financial systems through partnerships integrating regulated stablecoins like USDC. This supports the initiative’s goal to modernize $38 billion in annual aid flows, enhancing efficiency and transparency.
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