Circle Launches Cross-Chain USDC Transfer Protocol for Ethereum, Avalanche
Circle has launched a mainnet protocol that enables users to transfer its US Dollar Coin (USDC) between Ethereum and Avalanche. The Cross-Chain Transfer Protocol (CCTP) does not use a traditional bridge but instead destroys tokens sent to its contract and issues new ones on the receiving network. Users can redeem the new tokens for bank deposits by depositing them with Circle or its partners. Fragmentation of USDC tokens on various networks is expected to decline and Circle anticipates the protocol will improve liquidity and capital efficiency in DeFi. The largest cross-chain protocols have pledged to use CCTP, including Celer, Hyperlane, LayerZero, LI.FI, MetaMask and Wormhole.
Circle CEO Blames US Crypto Crackdown for Declining USDC Market Cap
Circle CEO Jeremy Allaire has said that the US regulatory crackdown was a major factor behind stablecoin USD Coin's (USDC) declining market capitalization. Allaire noted that there is "huge amount of concern globally about the US banking system" and the "regulatory environment in the US." USDC's market cap has been cut nearly in half, currently sitting at $30.7 billion, following the banking crisis and its depeg from the US dollar earlier this year. Coinbase had also warned that the lack of regulatory clarity may force crypto companies to look for opportunities overseas. Allaire believes the US will be left behind without regulatory clarity.
Circle’s Fed Payment Rail Goal Could Be Crushed by NY Fed’s Policy Change
The New York Federal Reserve has updated its guidelines to determine which parties are eligible to participate in its reverse repurchase agreements (RRP), potentially hindering Circle's access to the Fed's reverse-repurchase program. The Circle Reserve Fund, its money market fund managed by BlackRock, is a 2a-7 fund that is only available to Circle and could be "deemed ineligible" according to the Fed's statement. Approval into the Fed's program would allow Circle to earn interest on excess funds by investing in low-risk Treasury securities, helping to maintain the stability of its stablecoin, USD Coin (USDC). Circle has turned its focus to having "more banking partnerships on a global basis" since the depeg of USDC following the collapse of Silicon Valley Bank (SVB) on March 10.
Breaking: USDC-Issuer Circle CEO Hints At US Exit
Circle CEO Jeremy Allaire has stated that regulatory burdens and a push by regulators to debunk the crypto market are causing the market value of USD Coin (USDC) stablecoin to continue falling. He revealed that investors are looking to "de-risk out of the US" due to a lack of regulatory clarity in the country.
Circle’s Allaire Signals Risks in US Are Impacting USDC Stablecoin
A push by investors to “de-risk out of the US” amid banking system and regulatory challenges is contributing to the drop in the market value of stablecoin USD Coin, according to the chief executive of the token’s issuer.
NY Fed Policy Change Could Squash Stablecoin Issuer Circle’s Hope for Fed Access
According to a press release by the Federal Reserve Bank of New York (NY Fed), funds “organized for a single beneficial owner,” registered as “2a-7 funds” at the Securities and Exchange Commission (SEC), “generally will be deemed ineligible” under the new rules. The Circle Reserve Fund, managed by global investment management giant BlackRock Advisors, appears to fall into this category.
Tether's USDT Stablecoin Market Cap Surges to $81.5 Billion Despite Regulatory Uncertainty
Tether's USDT stablecoin market cap has reached $81.5 billion, close to its all-time high of $83.4 billion. Its market share stands at 63%, its highest point in two years. Circle's USD Coin and Paxos-issued Binance USD saw a disproportionate amount of on-chain value redeemed for dollars, contributing to Tether's surge in market share.
Crypto Morning Briefing: New York DFS Finalizes Regulations for Crypto Businesses Under its BitLicense
CME to Add Daily Expiries on Bitcoin and Ether Futures Options Contracts; USDC Issuer Circle Exec to Testify at US Congressional Hearing on Stablecoins; BoE Considers Limits on Stablecoin Payments as Parliament Debates New Crypto Rules
USDC Issuer Circle Exec to Testify at US Congressional Hearing on Stablecoins
Circle, the US company behind the popular stablecoin USDC, is set to testify in a Congress hearing on Wednesday about stablecoin regulation in the US.
Circle Exec to Join US Congressional Committee Hearing on Stablecoin Payments, Legislation
The United States House Committee on Financial Services a.k.a the Financial Services Committee will hold a hearing on April 19 to discuss stablecoins’ position as a means of payment and whether or not the ecosystem needs supporting legislation.
