With collaborations with MoneyGram, Mastercard, and Plaid, Circle is gaining recognition for its digital currency. Circle is best known for creating USD Coin (USDC), the top US dollar-backed stablecoin. But the company's future goals are far bigger.
With goals to not just increase the usage of USDC but also create comparable fiat-backed stablecoins for other fiat currencies, such the Euro, Circle is aiming high to be a key player in this vision. This goal has also contributed to the company's increased valuation; it is now expected to go public in a SPAC merger with Concord Acquisition Corp. at a $9 billion valuation, which is double the $4.5 billion that was first mentioned when the agreement was first announced in July 2021. Additionally, it anticipates a large increase in income once its goods launch.
While many cryptocurrencies are infamous for their volatility, USDC is intended to be 1:1 with US dollars. Circle, with the help of a collaboration with Silvergate Bank, constantly maintains exact currency at the same value as the USDC it has in circulation. It is predicted to reach 110 billion USDC by the end of 2022, having increased from an expected 42 billion in late 2021 to 53.5 billion USDC at now.
Therefore, people see the digital currency as a way to transfer money into a format that is quicker, less expensive, and more secure to use in digital settings rather than as a chance to invest in an asset that may appreciate in value.
Right now, the vast majority of businesses using this are those who are primarily in the cryptocurrency industry, such those who create non-fungible tokens (NFTs). Because they can quickly convert USDC into other cryptocurrencies as needed, these organizations prefer using USDC over fiat dollars for commercial operations. This allows them to conduct all or almost all of their activities without having to deal with fiat currencies.
But Circle wants to utilize the digital currency for more than just one market, so in order to achieve so, it will need to convince people who are accustomed to using fiat-only payment systems of USDC's benefits.
A digital payment that settles as quickly as cash may be valuable to businesses, but it doesn't offer a much better experience for customers. The possibility of turning money into a digital protocol, however, might alter how it is utilized and managed.
