The company credited growing regulatory clarity for USDC adoption
Circle CEO backs the idea of digitising US dollar
Circle’s IPO plans still remains unstable
Photo Credit: Circle
Circle, the issuer of the USDC stablecoin, says that the circulation of the digital asset clocked a year-on-year growth of 78 percent. Around November 2024, the company revealed that the monthly transaction volume of the USDC token touched the $1 trillion (roughly Rs. 86,39,270 crore) mark. The company states in a report that since its launch in September 2018, USDC's volume has touched $18 trillion (roughly Rs. 15,55,21,000 crore) in all-time volume. US-based Circle is headquartered in Boston, Massachusetts. Its USDC stablecoin, pegged against the US dollar, rivals Tether in the stablecoin market.
While Tether is touted as the largest stablecoin by market cap, Circle is said to be the second-largest token in the stablecoin space. The holders of USDC can convert fiat-to-crypto, while also having the option to use the tokens to process payments to avoid additional payment charges. According to CoinMarketCap data, 45.76 billion USDC tokens are in currently in circulation.
Circle Says Improved Scalability of New Blockchains Accelerated the Adoption of USDC
In its report, Circle credits the growing regulatory clarity and improved the scalability of new blockchains that have accelerated the adoption of USDC.
“This trend toward regulatory clarity will engender greater confidence in USDC among households, firms, and financial institutions. At the same time, developers are simplifying the user experience and pushing complexities. Blockchains that have solved major scaling issues can now enable USDC payments around the world that cost just a fraction of a penny,” the company said.
In 2021, Circle was investigated by the US SEC as the company discussed plans to go public via a special purpose acquisition vehicle, or SPAC. It reportedly filed for an IPO in January 2024.
Despite a bunch of regulatory and growth-related hiccups, Circle claimed that the USDC ecosystem has continued to show growth over the years, globally. The report claims that fintech executives are rapidly understanding the need to expand the infrastructure for instant payments.
“The growth of the USDC economy reflects a bigger trend toward openness in finance, where technology advances. USDC and open financial infrastructure are at the center of the emerging internet financial system,” the report added.
Last year, Circle teamed up with Sony to expand the USDC ecosystem through the Soneium blockchain. The collaboration aims to position USDC as a key token within the Soneium network.
In December 2024, Binance joined forces with the USDC-issuer to adopt the stablecoin for the maintenance of its own treasury.
Jeremy Allaire, the CEO of Circle has often asked the US authorities to get serious about considering the legalisation of stablecoins that can digitise the US dollar. Allaire believes that the US banking crisis has triggered a need for the country to consider the legalisation of stablecoins.
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