Circle and Genesis Team to Develop Yield and Lending Products for USD Coin; Partnership Includes $25 Million Strategic Financing for Circle from Digital Currency Group
Josh HawkinsJuly 30, 2020
We are thrilled to announce today that Circle and Genesis, a leading digital asset prime brokerage firm, have entered into a strategic partnership that will add new USD Coin (USDC) yield and lending services to Circle's suite of products for businesses and developers. Today, we're also happy to announce that Digital Currency Group, the parent company of Genesis, has made a $25 million strategic investment in Circle, to accelerate the global adoption of USDC in mainstream finance.
Digital dollar stablecoins have experienced tremendous growth in 2020, recently topping 12 billion in circulation and now representing the largest segment of blockchain usage and transaction volume. Research firm Messari estimates that on-chain stablecoin transactions will approach $600 billion in volume this year, just shy of the $712 billion PayPal did in total payment volume in 2019.
USDC has emerged as the fastest growing and most widely adopted fully-reserved and compliant digital dollar stablecoin. USDC in circulation has grown from just over 400 million in early 2020 to over 1.1 billion today. USDC adoption has expanded across trading, payments, savings, lending and other use cases in blockchain finance. Today, hundreds of companies in the blockchain ecosystem have integrated support for USDC in their products and services.
On the back of this growth, Circle launched its new Circle Business Account and Circle API products in Q2 2020. These new services provide businesses, fintechs and other financial institutions with a comprehensive suite of accounts and APIs for integrating and implementing USDC for payments, commerce and financial applications. Customers adopting these services span a broad array of industries and use cases including e-commerce, on-demand delivery marketplaces, digital gaming, internet services, P2P digital wallets, exchanges, B2B payments, neobanks, trade finance and digital asset lending and yield products.
During this same period, Genesis has continued its growth and leadership as the largest crypto asset lending facility in the market, with record volumes of lending across a wide range of institutional customer segments. Genesis originated more than $2 billion in loans in Q1 2020, and has originated more than $8 billion since launching the business in March 2018. As part of this growth, USDC has become one of the most in-demand lending and borrowing assets, as the market seeks to transact and use USDC as a highly reliable payment rail and as preferred treasury asset.
The partnership announced today between Circle and Genesis will bring to market solutions for businesses and developers who are seeking to generate strong positive yield from their own or customer USDC holdings, and access to USDC-based credit for businesses and merchants that are using USDC for treasury operations and business payments.
The $25 million in new strategic capital from Digital Currency Group will accelerate investment and growth behind Circle’s new suite of business accounts and platform services.
Details and availability of new products and services enabled by this partnership will be announced later this year.