Increase in USDC supply by Circle sparks expansion in Decentralized Finance (DeFi) and global transactions
USD Coin (USDC), a popular stablecoin, is making waves in both traditional and digital financial platforms. The digital currency, issued by Circle, has earned credibility amongst financial players due to its fixed peg to the dollar, open reserves, and the presence of regulators.
In a significant move towards integrating stablecoins, USDC has been expanded to the EEMEA region through a partnership with Mastercard and an unspecified partner. This development also supports EURC, further broadening the reach of stablecoins.
The success of Circle, the issuer of USDC, has been largely based on institutional partnerships and DeFi solutions for USDC. Recently, Circle has entered partnerships with Finastra to integrate USDC stablecoin settlement into cross-border payments, with Fireblocks to accelerate institutional stablecoin adoption, and with major banks like Deutsche Bank and Santander to launch the Circle Payments Network. These collaborations aim to enhance USDC's role in global remittances and reduce settlement costs, while also enhancing transaction efficiency.
The integration of USDC into Finastra's global PAYplus system is a significant step towards integrating stablecoins. PAYplus is a system that aims to digitize up to $5 trillion of cross-border daily transactions, and the inclusion of USDC is expected to bring about a new era of digital transformation in the financial sector.
Aave, a leading decentralised lending platform, has launched Horizon, which allows institutions to borrow USDC on tokenized real-world assets like US Treasuries. The launch of Horizon contributes to the utility of stablecoins within structured finance, further expanding their use cases.
Regulatory bodies are also taking notice of the growing influence of stablecoins. The European Central Bank (ECB) has proposed an equivalence framework for regulating risks associated with non-EU stablecoins. The EU Markets in Crypto-Assets (MiCA) framework now regulates digital asset services within the EU, aiming to harmonize regulations and minimize risk, but not ban integration into traditional systems.
As of now, USDC has become the seventh-largest cryptocurrency, with a total market capitalization of $72.6 billion. The circulation supply of USDC has increased by an additional $2 billion in the last week, reflecting the growing interest and adoption of the stablecoin.
In conclusion, USDC is increasingly being used on traditional and digital financial platforms, and its role in the transition of legacy finance to blockchain-based infrastructure is undeniable. With its growing use cases, robust partnerships, and regulatory support, USDC is poised to continue its upward trajectory in the digital finance landscape.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
%20and%20global%20transactions){kind=link}