CLPS incorporates stablecoin functionality into credit card system

HONG KONG - CLPS Incorporation (NASDAQ:CLPS), a $27.51 million market cap fintech company with 15.17% revenue growth in the last twelve months, announced Friday the integration of stablecoin payment and settlement functions into its core credit card system, CAKU, through its wholly-owned subsidiary Qinson Credit Card Services Limited.

The upgrade enables users to pay credit card bills, settle point of sale transactions, and manage credit limits using stablecoins such as U.S. Dollar Coin (USDC) and Tether (USDT). The new functionality will initially be available to potential clients in Hong Kong SAR before expanding to international markets. According to InvestingPro, CLPS maintains a healthy current ratio of 1.58, suggesting strong operational liquidity to support this expansion.

Key features include intelligent stablecoin minting, efficient fiat-to-stablecoin exchange, stablecoin burning and redemption support, and enhanced settlement speed. The system maintains a 1:1 ratio between stablecoins and fiat currency reserves.

The integration targets three main business scenarios: issuing bank services for "stablecoin credit card" products, e-commerce and cross-border merchants seeking lower payment processing fees, and corporate clients looking to settle card expenditures using stablecoins.

"We are at a historic convergence of conventional finance and digital assets," said Raymond Lin, Chief Executive Officer of CLPS. "Integrating stablecoin functionality into our CAKU system represents significant technological innovation and a forward-looking initiative for the future payments."

CLPS Incorporation, established in 2005 and headquartered in Hong Kong, provides services across various sectors including fintech, payment and credit services, and e-commerce. The company operates in 10 countries with regional hubs in Shanghai, Singapore, and California. InvestingPro analysis suggests the stock is currently undervalued, with additional insights and 7 more ProTips available to subscribers. The company has shown strong momentum with a 17.31% return over the past six months, despite operating with a 22.07% gross profit margin.

The information in this article is based on a press release statement from the company.

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