The world of traditional finance and the cryptocurrency asset are known to look at each other suspiciously, distrustful of each other, and always ready to erode capital from each other, but an assist to peace comes from Circle.
Circle and the USDC stablecoin
The Luxembourg-based regulator intends to serve as a bridge between classical finance and the world of digital currencies.
Circle has let it be known that it has adopted USDC, the stablecoin born from the combined efforts of Coinbase and Circle, to be exact.
USDC is based on the U.S. fiat currency, the dollar, and stands with it in a 1-to-1 ratio that makes it very stable and solid both technically and in the eyes of investors and insiders.
USDC is the second stablecoin by capitalization based on the U.S. dollar, just behind Tether’s USDT.
Circle seems to have taken a liking to fiat currency-based stablecoins and recently also launched EUROC, a stablecoin always based on a 1-to-1 ratio, but this time on the Euro.
The European-based financial institution intends to act as a bridge between bank and exchange clients also because more and more people using classical finance are also untangling themselves in the Crypto world.
The operations will enable fast capital movement and offer an extra tool for investors.
The security of the exchanges is placed at the center, and Coinbase is among the platforms that stand to guarantee this, also given the long-established collaboration with Banking Circle.
The European company considers this to be:
“A key step in the democratization of global finance and offers benefits of reconciliation, speed and cost.”
In a recent interview, Mishal Ruparel, head of virtual asset services at Banking Circle, said.
“Some of our customers have been using the crypto space in the past year or two and we want to support their growth.”
In the interview, Ruparel adds details about the adoption of stablecoins linked to fiat currencies:
“We will add more USD-pegged stablecoins and other currencies stablecoins in the future.”
As if to hint at the entry of USDT and EUROC into the basket of bridge currencies that can be used on Circle.
The financial institution executive referring to fiat currency-based digital currencies goes on to explain:
“This will allow many companies that sell goods, services or creative content online the ability to sell, raise funds and receive their earnings almost anywhere. It also removes much of the friction and time required for relocation internationally.”
“This latest addition to our paylines is an important step as we grow our super correspondent banking network, giving banking and payment companies the ability to break out of the traditional correspondent banking model and extend their offerings.”
At a time of falling markets and sharp declines in the value of almost all digital currencies, Banking Circle is a step in the right direction to stabilize both worlds of finance.
Stability and security are the keywords, and normalizing exchanges and connections can only bring peace of mind to the markets and the Crypto world.
Despite the recession, skyrocketing inflation, and unpleasant episodes such as the Terra (LUNA) debacle and problems at some exchanges, the digital asset’s capitalization is on the upswing, and this interaction with classical finance is new blood that helps it catch up.
The post Luxembourg-based bank Circle adopts USDC stablecoin appeared first on The Cryptonomist.
