The operator of USD Coin (USDC), Circle, has launched a new account service aimed at helping businesses transact in cryptocurrencies, which could open the door to further adoption of digital assets.
Circle’s new enterprise-focused account allows customers to deposit, withdraw, receive and store cryptocurrencies and have all payments settled in the USDC stablecoin, the company announced Wednesday. New Circle account features give businesses the ability to seamlessly integrate crypto payments into their operations and use digital assets as collateral. Account holders can send and receive USDC across eight blockchain networks, including Ethereum, Algorand, Solana, Stellar, Tron, Hedera, Avalanche, and Flow.
Since Circle Accounts launched in 2020, the number of active users has increased by 213%, the company said. “Companies can adopt USDC for any reason to create additional efficiencies for their operations,” a Circle spokesperson told Cointelegraph, adding:
“Some reasons for the growth of USDC are the increase in payment use cases, cross-border transactions, and the adoption of assets like USDC as a ‘journey to safety’, especially in countries where the local currency is suffering a devaluation”.
Circle Accounts may also be used by accredited investors to participate in the company stablecoin lending program. Known as Circle Yield, the program offers investors up to 8% annual returns. Circle claims its Yield product is “over-collateralized” with Bitcoin (BTC), which means that your BTC holdings exceed the amount needed to cover potential losses in the event of a default.
As Cointelegraph reported, Circle saw its valuation double to $9 billion earlier this month after reviewing a planned merger deal with Concord Acquisition Corp, a special purpose acquisitions (SPAC) company founded in 2020. Circle is expected to and Concord finalize their merger by December 8, 2022.
Circle’s USDC is the second largest stablecoin in terms of market capitalization and among the fastest growing. USDC currently has a market capitalization of $52.7 billion, versus Tether’s $79.4 billion, according to CoinMarketCap.
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