# CRYPTO 101

USDC and Circle: Transforming Global Payments with Blockchain

Circle

KEYTAKEAWAYS

  • Circle, founded in 2013, is known for USDC, a stablecoin pegged to the US dollar.
  • Circle partners with major companies to expand its ecosystem and enhance USDC’s global use.
  • USDC is fully compliant with MiCA regulations, giving Circle an edge in the European market.

CONTENT

Circle, founded in 2013, simplifies global payments using blockchain. Known for USDC, Circle aims to modernize finance and promote digital currency innovation.

 

WHAT IS CIRCLE?

 

Circle is a leading fintech company founded in 2013 by Jeremy Allaire and Sean Neville. Headquartered in Boston, Circle is committed to simplifying and modernizing global payments through blockchain technology. The company is best known for its stablecoin, USD Coin (USDC), which is pegged to the US dollar, providing a stable value and efficient transaction method. Supported by major financial institutions and cryptocurrency exchanges, USDC has established Circle as a key player in digital payments and decentralized finance (DeFi).

 

Circle‘s mission is to create a more open and frictionless global economy by merging traditional financial infrastructure with blockchain technology, promoting the widespread use and innovation of digital currencies.To learn more about Circle, please visit the Circle official website.

 

>>> More to read : What is USD Coin (USDC)?


CIRCLE OVERVIEW

 

  • Technological Innovation: 

 

Circle continuously expands its ecosystem by partnering with major financial and tech companies like Coinbase to promote USDC globally. Circle has implemented USDC on multiple blockchain platforms, including Ethereum, Solana, and Algorand, enhancing transaction speed and efficiency while reducing costs.

 

  • Market Impact: 

 

Circle drives the digitization of financial services by offering various payment solutions, enabling businesses and individuals to use USDC for cross-border payments and commercial transactions. These solutions provide fast, secure, and low-cost financial interactions. To ensure the stability and transparency of USDC, Circle regularly publishes asset audit reports, allowing users to understand the status of its reserve assets, further strengthening market confidence in USDC.

 

  • Financial Inclusion: 

 

Circle is committed to promoting global financial inclusion by providing financial opportunities to unbanked and underserved populations through its products and services. USDC is widely used in various sectors, including cross-border remittances, microenterprise financing, and charitable donations, helping to reduce friction and costs in the global financial system.

 

  • Public Welfare Activities: 

 

Circle actively participates in public welfare activities, partnering with non-profit organizations to leverage blockchain technology for social good. Circle believes that fintech can bring economic benefits and play a crucial role in promoting social equity and sustainable development.

 

CIRCLE’S FUTURE 

 

Circle plans to expand its market share as digital currencies and blockchain technology become more popular, positioning USDC as a mainstream global digital currency. Despite having a smaller market capitalization than its competitor Tether, Circle‘s monthly transaction volume is significantly higher. Since April, USDC’s transaction volume has more than doubled compared to USDT, indicating its more frequent use for on-chain transactions, while USDT is more prevalent in centralized exchanges (CEX) and offshore exchanges. According to data from “visaonchainanalytics,” the number of transactions executed by both stablecoins is roughly similar, meaning USDC users are transacting with larger amounts.

 

With the European MiCA (Markets in Crypto-Assets) regulations taking effect on June 30, 2024, many stablecoin issuers will face various compliance challenges and may be excluded from the cryptocurrency trading market. OKX and UpHold have already confirmed delisting USDT from their trading pairs. USDC appears to be the only stablecoin in the crypto market that fully meets MiCA’s regulatory standards, giving it a potential advantage over competitors in Europe. In response to these challenges, Circle is considering enhancing the compliance and transparency of digital currencies to build stronger user trust and market confidence. Circle‘s goal is to become a global leader in the digital finance sector and continue driving innovation and development in the digital economy.

 

>>> More to read : Circle’s USDC and EURC Achieve MiCA Compliance: A Milestone for Global Stablecoins


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