The United Nations announced it had received a grant from the Circle Foundation to upgrade its Digital Hub for Treasury Solutions (DHoTS) and integrate regulated stablecoins into cross-border refugee aid payments. The funding targets modernization of legacy rails that move an estimated $38 billion in annual humanitarian funding and expands pilot work begun in 2022.
The project centers on enhancing DHoTS, the UN Digital Hub for Treasury Solutions co‑led by UNHCR with technical support from the United Nations International Computing Centre. The platform already processes more than 100.000 monthly transactions and connects over 150 banks across 100+ countries; the Circle Foundation’s funding is intended to enable integration of regulated stablecoins, notably USDC, and to scale those capabilities to agencies such as UNDP and IOM.
The grant builds on a 2022 pilot that used USDC payments for displaced Ukrainians. The Circle Foundation described this as its first international grant to support cross‑border fund transfers within the UN system and to broaden use of regulated stablecoins in humanitarian payments.
Operational benefits, challenges and compliance considerations
Faster settlement and lower fees as stablecoins and blockchain rails can cut settlement times to seconds and reduce intermediated costs, with pilot programs reporting delivery cost reductions of up to ~20% (and higher in some high‑inflation settings).
Improved traceability and accountability as immutable transaction records and integrated controls aim to strengthen auditability and fraud prevention for large, multijurisdictional programs.
Implementation hurdles include beneficiary digital literacy, device and network access, and the evolving regulatory environment for stablecoins. The partnership has signalled intent to embed compliance controls aligned with frameworks such as the EU’s MiCA, while also addressing scalability and liquidity for broad cash‑out coverage.
“This marks its first international grant,” the Circle Foundation said, framing the award as a proof point for stablecoin-based financial resilience in humanitarian contexts.
Investors, product teams and compliance officers will now watch the 2027 horizon, when stablecoins are projected to handle roughly 10–15% of aid flows; that projection will serve as a practical test of liquidity, cross‑border regulatory alignment and the operational resilience of cash‑out networks as the UN scales digital disbursements.
