The up-to-date group will develop a global standard for Blockchain transactions

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A up-to-date industry group called Blockchain Payment Consortium was created to establish common rules for how blockchains transfer money.

According to participant statements and industry summaries, the consortium brings together seven enormous companies and foundations operating various blockchains and infrastructure.

The group says it wants a common framework covering both the technical steps of transfer and the compliance data that banks and regulators expect.

Blockchain: standardizing Stablecoin transfers between chains

Founding members listed are Fireblocks, Solana Foundation, TON Foundation, Polygon Labs, Stellar Development Foundation, Mysten Labs and Monad Foundation.

Based on the reports, the initial focus will be on stablecoin payments that move between different blockchains. The field has expanded significantly: Last year, supply chain payments were reported to be worth around $20 trillion, a figure that market watchers are pointing to as they advocate for clearer, common rules.

Why was the Group established?

Industry sources say consortium supporters want to reduce friction created when one chain says one way and another says another.

Reports show that companies and banks often need consistent data attached to payments – such as origin, purpose and match flags – before they will accept the payment.

The consortium aims to define how data should be sent with the token as it moves through the network and how billing and reconciliation should be handled so that companies can rely on the results.

According to BPC, blockchain rails are “transforming the global payments landscape.” If not blockchain payments to reach their full potential, the group said they must “address the inconsistent and fragmented experiences that individuals and institutions face when moving between traditional payments and blockchain.”

As of today, the market cap of cryptocurrencies stood at $3.34 trillion. Chart: TradingView

Cross-industry and regulatory coverage

The group plans to act as a bridge between blockchain projects and regulators. It expects to propose templates that exchanges, custodians and payment processors can utilize to facilitate audits and reporting.

Some members warned that getting regulators in several jurisdictions to accept the same approach would be challenging. The reports also pointed out that different networks utilize different technical designs, which makes implementing a one-size-fits-all solution challenging.

The consortium described its work to date in general terms, focusing on a framework rather than a ready-made protocol. Based on the reports, specific results may include data formats, API patterns, and recommended checks that service providers should perform during cross-chain transfers.

Featured image from Yuichiro Chino/Getty Images, chart from TradingView

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