CLPS Incorporation, today announced, through its wholly-owned Hong Kong subsidiary, Qinson Credit Card Services Limited, the integration of major stablecoin payment and settlement functions into its core credit card system, CAKU. A stablecoin is a type of digital financial instrument that uses crypto-native programmable contracts to maintain price stability by being pegged to a real-world asset, such as a fiat currency.
This strategic move is a significant step for CLPS in bridging established payment networks with the digital currency ecosystem. It aims to provide issuing banks, merchants, and consumers with enhanced payment flexibility, faster transaction speed, and lower costs. The new functionality is expected to be rolled out first to potential clients in Hong Kong SAR and eventually to key international markets.
The upgrade leverages CAKU’s advanced scenario-driven NextGen platform to enable corporate and individual users to pay credit card bills, settle point of sale transactions, and manage credit limit with stablecoins, including U.S. Dollar Coin (USDC), Tether (USDT), and other fiat-pegged digital assets. Users can effortlessly apply digital assets to everyday payment activities while still enjoying the convenience and rewards of payment cards.
Key features and benefits include:
- Intelligent Stablecoin Minting: Triggers smart contracts to automatically mint stablecoins, at a precise 1:1 ratio based on actual fiat currency reserves, rigorously ensuring stablecoin value remains pegged to fiat currency.
- Efficient Fiat-to-Stablecoin Exchange: Supports streamlined fiat-to-stablecoin conversion gateways, simplifying operational processes, enabling quick deposits, and accelerating capital flow efficiency.
- Stablecoin Burning and Redemption Support: Creates user-friendly redemption gateways to simplify the conversion from stablecoins back to fiat currency. Implements a smart contract-triggered burning mechanism to automatically reduce the circulating supply post-redemption, precisely regulating market supply and demand balance, and effectively stabilizing coin’s value.
- Accurate Reserve Adjustment: Swiftly and accurately adjusts reserve records following intelligent burning. All changes undergo strict review and verification to maintain the authenticity and accuracy of reserve assets.
- Seamless Payment Experience: Cardholders can select stablecoin directly within their bank’s app or online banking portal to repay credit card bills or settle transactions in real-time, ensuring a smooth and secure process.
- Enhanced Settlement Speed and Reduced Costs: By leveraging blockchain, stablecoin transactions facilitate near-instantaneous clearing and settlement. This significantly accelerates processing times for cross-border or large-value transactions and reduces associated fees.
- Expanded Financial Inclusion: This integration provides a vital bridge for active digital currency users to access the traditional financial system, particularly benefiting cross-border commerce and digital economic activities.
- Compliance and Security First: The functionality is designed to strictly adhere to global regulatory standards, incorporating robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to ensure all transactions are secure and compliant.
The major business scenarios include:
- Issuing Bank Services: Banks can launch “stablecoin credit card” products to attract digital-native customers.
- E-commerce and Cross-Border Merchants: Merchants specializing in global e-commerce, SaaS subscriptions, and high-value digital goods can benefit from significantly lower payment processing fees compared to traditional payment networks.
- Corporate and High-Net-Worth Clients: The system provides advanced digital fund management tools, allowing businesses or individuals to automatically settle large corporate card and consumer card expenditures using held stablecoins. This effectively bridges digital asset portfolios with traditional spending channels.
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