Over the last few weeks we’ve rolled out new tools for active crypto market participants who leverage USDC as their go to stablecoin. These solutions offers institutional traders a way to gain market edge as the crypto markets evolve to become mainstream institutional markets.
What’s new for Institutional Traders
Circle Business Account API
Hundreds of institutional traders use their Circle Account today as their home base for USDC liquidity, enabling them to access liquidity and conversion of USDC from 80+ countries with no limits on minting or converting digital currency back into fiat currency
We’ve rolled out the Circle Business Account API to give existing institutional trading partners streamlined access to USDC liquidity at no cost or slippage. This type of programmability of USDC allows for more integrated and customized trade settlement flows for internal treasury operations. If your bank account is connected to the Silvergate Exchange Network (SEN), then this API supports near-instant USDC issuance and redemption, and programmatic control over USDC wallet sweeps and destinations.
The Business Account API can also be used to swap USDC across all supported chains, including Ethereum and Algorand (with Solana and Stellar coming soon), providing a seamless cross-chain cash management experience.
Speed plays an integral role for institutional traders in the crypto markets. Slow fund transfers to exchanges can mean missing out on a market opportunity. We’ve rolled out a new service for institutional traders — USDC Express — that aims to reduce friction and boost settlement speeds.
Using USDC Express, an institutional trader can initiate a bank wire transfer that automatically settles in USDC on the trader’s designated crypto exchange wallet without a manual step or human intervention along the way.
Conversely, market participants can also withdraw USDC from their exchange wallet that then automatically settles as a fiat currency deposit in their bank account.
Customers can pre-configure which ERC-20 or supported blockchain address they would like their tokenized USDC to be sent to so that each time they want to fund their trading account at a particular exchange; they can do so with the click of a button. To withdraw and convert their trading capital back into fiat currency, USDC tokens are automatically burned, and fiat currency is deposited in the customer’s designated bank account.
Finally, you can add multiple destinations by varying tracking references on bank wire transfers, giving you flexibility of funds flows.
The new express liquidity feature is currently available for Ethereum and Algorand, with Solana coming soon.
Payments API
With the introduction of bank wire payments, the Payments API can be used for managing bi-directional settlement on-chain via 3rd party wire transfers or via SEN, allowing for a seamless OTC trading experience. Firms can also accept wire transfers programmatically from trading counterparts that settle natively in USDC. In the case of SEN transfer, settlement would take place within minutes.
What’s more, international users can send wire transfer payouts following settled trades in their local currency, alleviating the need for an additional rail to settle foreign currency transfers.
OTC Trading Desk Treasury Operations
OTC trading desks that deal in large volumes and with sophisticated trading counterparties struggle with clients who want to settle trades using bank wire transfers.
Wire transfers can take days to settle, and there is no real-time tracking option to know when exactly the funds will arrive. Naturally, OTC desks prefer to settle trades using USDC as transfers can be transparently viewed on the blockchain in real-time, and transactions settle within minutes.
For OTC desks, the Circle Payment API is particularly powerful as it enables them to seamlessly move settled funds into USDC, alleviating the need to manage fiat currency.
The Takeaway
Circle’s USDC solutions provide the institutional trading market with the edge they need to successfully compete in the crypto markets.
From frictionless access to digital dollar liquidity to programmable “express” funding options,
institutional traders can upgrade their trading infrastructure to perfectly position themselves for the crypto markets’ integration into the global financial markets
