{"id":82928,"date":"2023-08-11T12:48:09","date_gmt":"2023-08-11T09:48:09","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82928"},"modified":"2025-09-12T07:59:18","modified_gmt":"2025-09-12T04:59:18","slug":"circle-deploys-1-billion-to-compete-in-the-stablecoins-market","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/circle-deploys-1-billion-to-compete-in-the-stablecoins-market\/","title":{"rendered":"Circle deploys $1 billion to compete in the stablecoins market"},"content":{"rendered":"

Circle is counting on a $1 billion cushion to weather competition in the stablecoins<\/a> market. This was stated by the head of the USD Coin (USDC<\/a>) issuer, Jeremy Allaire, to Bloomberg<\/a>.<\/p>\n

Since the start of the year, Circle’s market capitalization has fallen from $44.5 billion to $26.2 billion. The main competitor’s figure \u2014 USDT<\/a> from Tether \u2014 rose to $83.4 billion.<\/p>\n

\"Circle
Data: CoinGecko<\/a>.<\/figcaption><\/figure>\n

Allaire acknowledged that the decline in market share was partly linked to Binance’s decision about a year ago to stop<\/a> using USDC in favour of its own stablecoin. The Circle CEO also noted the tail-risk factor of other events.<\/p>\n

\n

“Collapse of Terra<\/a> helped us, and Binance’s forced conversion hurt. Collapse of FTX<\/a> seemed to be a plus, but then regional bank failures harmed<\/a>,” said Allaire.<\/p>\n<\/blockquote>\n

Circle earns most of its revenue from interest on USDC collateral, such as short-term Treasuries or dollar-denominated deposits. For the first half of the year, the company’s revenue totaled $779 million, while for all of 2022 it was $772 million. During the period the firm posted a profit of $219 million and ended with more than $1 billion in cash on its balance sheet.<\/p>\n

\n

“This is significantly more than we expected, and it enables a multitude of opportunities for investing, creating new products, monetising revenue streams and pursuing international expansion<\/a>,” emphasised Allaire.<\/p>\n<\/blockquote>\n

In his view, competition in the market<\/a> of stablecoins will grow as more entrants come to it. The appearance of PYUSD from PayPal<\/a> is just the beginning, the Circle chief said with confidence.<\/p>\n

The issuer of the stablecoin for the payments giant was the infrastructure blockchain company Paxos. According to its spokesperson, the firm is working on partnerships<\/a> with many players in technology and finance who are ready to follow PayPal’s lead.<\/p>\n

Analysts at Bernstein estimate that, over the next five years, the stablecoin market capitalization will grow<\/a> from $125 billion to $2.8 trillion.<\/p>\n","protected":false},"excerpt":{"rendered":"

Circle is counting on a $1 billion cushion to withstand competition in the stablecoins market. Circle’s CEO, Jeremy Allaire, told Bloomberg.<\/p>\n","protected":false},"author":1,"featured_media":82929,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1220,807,910],"class_list":["post-82928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-circle","tag-stablecoins","tag-usdc"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/82928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=82928"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/82928\/revisions"}],"predecessor-version":[{"id":82930,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/82928\/revisions\/82930"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/82929"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=82928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=82928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=82928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}