The past several months has brought tremendous validation to the crypto asset and digital currency market. Leading asset managers have begun to allocate into crypto, while bold moves have been made by corporate treasurers in public companies such as MicroStrategy and Square allocating their balance sheet into crypto assets. This has corresponded with a dramatic rise in crypto asset funds such as Greyscale (the fastest growing asset manager in history?), and global fintech giant PayPal announcing crypto asset purchases in their flagship PayPal Wallet.
Alongside this crypto asset market growth, digital dollar stablecoins have continued their ascent as the fastest growing category of digital currency, both in terms of units in circulation (market capitalization) and on-blockchain transaction volumes (total payment volume). While stablecoins such as USDC have become bedrocks for how fiat currency moves in the support of crypto asset markets, it’s also grown dramatically as a liquid digital dollar used in rapidly growing internet-based borrowing and lending markets.
More and more blockchain native firms are leveraging USDC for working capital, payments and settlement, and broader treasury functions as they interact and transact in a crypto native financial market infrastructure. What might have begun as a means to settle a trade, has become a means for putting capital to work -- in markets that run 24/7/365, are globally connected and settle with the speed and efficiency of the internet, a capital markets improvement that within a few years we will look back on as totally obvious and inevitable.
Over the course of 2020, Circle has been rolling out a suite of APIs and account infrastructure for businesses to tap into the power of USDC for payments, commerce and financial applications. Helping these companies connect the funds they are storing and collecting as USDC into yield in crypto capital markets is a tremendous opportunity.
It's with this backdrop that we are excited to announce our plans to introduce short and medium term high yield business accounts* built entirely on USDC. With up to 6% APY**, businesses and fintechs can earn yield on their working capital, or offer it to their own customers*** as an alternative to traditional cash management offerings.
Enabled through our partnership with Genesis, we are combining Circle’s comprehensive suite of payments and transactional infrastructure with Genesis tremendous scale in institutional crypto lending, creating a streamlined offering for internet businesses and fintechs that can be easily integrated into standalone corporate treasuries or customer-facing financial applications.
Stay tuned for more updates when this offering will become available.
* Offering subject to business approval, geographical availability, and regulatory authorization, and there is no guarantee that the product will become available in a specific timeframe or geography. Service offered through Circle International Bermuda Limited. It is anticipated that Circle International Bermuda Limited will enter into lending arrangements with one or more institutional borrowers, including Genesis Global Capital, LLC. You should conduct your own investigations and analyses in connection with any participation in this product and the information set forth in these materials. All prospective participants in the products described herein are advised to consult with their legal, accounting and tax advisers regarding any potential participation. Additional information is available upon request.
** Rates are purely indicative and are subject to change pending availability, approval and market conditions.
*** Customer-facing offering subject to regulatory requirements and business account approval. Please contact Circle to discuss eligibility.