Circle Launches Business Accounts For USDC Transactions

February 24, 2022 1:34 pm

Popular stable coin issuer Circle recently just announced that it would launch a new service that would help businesses do transactions using cryptocurrencies which would help facilitate quicker mainstream crypto adoption.

This new service, named Circle Account, will essentially allow businesses to do withdrawals, deposits, or have storage of cryptocurrencies.

The key thing is that all the transactions will be settled with the company’s popular stable coin, USDC, which is currently the second highest market cap stable coin behind Tether.

The Circle Account is integrated with various platforms that will allow users to do USDC transactions across various popular blockchains such as Ethereum, Solana, and more.

CoinTelegraph reports:

Since the launch of Circle Accounts in 2020, the number of active users has increased by 213%, the company said.

“Businesses may adopt USDC for any number of reasons to create added efficiencies for their operations,” a Circle spokesperson told Cointelegraph, adding:

“Some drivers for USDC growth are increased payment use cases, cross-border transactions and the adoption of assets like USDC as a “flight to safety,” especially in countries where the local currency is suffering from a valuation loss.”

Circle Accounts can also be used by accredited investors to participate in the company’s stablecoin lending program.

Known as Circle Yield, the program offers investors between 4% and 6% in annual returns. Circle says that its Yield product is “overcollateralized” with Bitcoin (BTC), which means its BTC holdings exceed the amount needed to cover potential losses in the event of default.

The company Circle has recently seen a rapid increase in its valuation as it quickly reached a total cap of $9 billion which was most likely caused by the merger agreement it has with Concord Acquisition Corp.

The merger is expected to be finalized by the end of the year and is providing investors confidence that USDC will continue to be able to scale to support more transactions in the future now with this extra support.

Clients of Circle have so far expressed a positive reaction such as Berkley Capital which is considered an institutional client.

Head of Investor Relations at Berkley Capital, Ben Duggan, commented that the Circle Account is enabling them to send funds rapidly and give a clear overview of all USDC investments.

CoinSpeaker reports:

In addition, the new account comes amid a thriving focus on digital assets. The expanded focus is occurring combined with swift inventions in blockchain technology.

Thereby, it promotes faster and cheaper transactions, and prompts some companies to turn to digital assets as security against inflation.

According to technological research and security firm Gartner Inc. in December, “20% of businesses will use “digital currencies for payments, stored value or collateral by 2024.” 

From 2020 to the end of 2021, the demand for Circle Accounts boomed, with active accounts growing 213%. 

The new Circle Account is user-friendly, with an easy-to-use interface, allows businesses to issue global payouts, and maintains a flexible user accounts setup as their business expands.

Investors are optimistic about the development of reliable stable coin options as it allows institutions to keep their capital within the crypto ecosystem when they want to reduce risk.

As a result, steady development in this area will most likely help facilitate quicker adoption of crypto by the mainstream with USDC being one of the top contenders.

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