USD Coin (USDC) operator Circle has launched a new account service aimed at helping businesses transact in cryptocurrencies — potentially opening the door to wider mainstream adoption of digital assets.
The new business-centric Circle Account allows enterprise clients to deposit, withdraw, receive and store cryptocurrencies and have all payments settled in the USDC stablecoin, the company announced Wednesday. Circle's new account features give businesses the ability to seamlessly integrate crypto payments into their operations and use digital assets as collateral. Account holders can send and receive USDC across eight blockchains, including Ethereum, Algorand, Solana, Stellar, Tron, Hedera, Avalanche and Flow.
Since the launch of Circle Accounts in 2020, the number of active users has increased by 213%, the company said. “Businesses may adopt USDC for any number of reasons to create added efficiencies for their operations,” a Circle spokesperson told Cointelegraph, adding:
“Some drivers for USDC growth are increased payment use cases, cross-border transactions and the adoption of assets like USDC as a “flight to safety,” especially in countries where the local currency is suffering from a valuation loss.”
Circle Accounts can also be used by accredited investors to participate in the company’s stablecoin lending program. Known as Circle Yield, the program offers investors between 4% and 6% in annual returns. Circle says that its Yield product is “overcollateralized” with Bitcoin (BTC), which means its BTC holdings exceed the amount needed to cover potential losses in the event of default.
As Cointelegraph reported, Circle saw its valuation double to $9 billion earlier this month after it revised a planned merger agreement with Concord Acquisition Corp, a special purpose acquisition company founded in 2020. Circle and Concord are expected to finalize their merger by Dec. 8, 2022.
Circle’s USDC is the second-largest stablecoin in terms of market capitalization and is among the fastest-growing. USDC currently has a market capitalization of $52.7 billion compared to Tether’s $79.4 billion, according to CoinMarketCap.