PANews reported on April 18 that according to Cryptoslate, Circle announced the launch of the Refund Protocol, introducing a non-custodial smart contract system that enables stablecoin transactions to resolve disputes without relying on centralized intermediaries. The initiative aims to address a key flaw in the use of stablecoins, which is the lack of a built-in refund or chargeback mechanism. The Refund Protocol gives payment arbitrators specific permissions while limiting their ability to control funds. Arbitrators can lock funds for a period of time, authorize refunds to the payer's pre-set address, and allow early withdrawals after negotiating fees. However, arbitrators are prohibited from transferring funds at will, thereby maintaining the non-custodial nature of the system. The company acknowledges that currently custodial assets do not generate income, but suggests that future upgrades could integrate lending protocols like Aave to tokenize locked funds and potentially share income between payees and arbitrators.