Stablecoin issuer Circle is exploring ways to make transactions in its USDC token reversible in cases of fraud or disputes, the Financial Times reported. 

“We are thinking through … whether or not there’s the possibility of reversibility of transactions, right, but at the same time, we want settlement finality,” said Circle President Heath Tarbert.

This story is an excerpt from the Unchained Daily newsletter.

The idea aims to align stablecoins more closely with traditional finance, where refunds are possible, potentially boosting institutional adoption. But it challenges one of blockchain’s core principles: immutability. Currently, Circle can freeze or blacklist addresses but cannot reverse completed transfers.

USDC has a market capitalization of $74 billion, second only to Tether’s USDT. Circle, which went public earlier this year, is also developing its Arc blockchain, designed to support stablecoin applications with sub-second settlement speeds.