According to a report by Bloomberg, Circle, the company behind USDC, has one billion dollars in cash reserves in its vault.
Bloomberg has published a news about stablecoin providers. According to this news, Circle has cash reserves of one billion dollars.
Circle’s one billion cash reserves escalate competition
According to Bloomberg news, Circle aims to strengthen its competition in the stablecoin race with its $1 billion cash reserves. CEO Jeremy Allaire told Bloomberg News that Circle is investing in a $1 billion cash cushion to cover the decline in market share and new collaborations from other stablecoin projects.
According to data from The Block, Circle’s overall stablecoin supply has been shrinking since the start of the year, with the popular USDC dropping to nearly $24 billion as of August. This represents a nearly 43 percent drop from the coin’s $42 billion supply in January. Allaire attributed this decline to Binance’s decision to switch to its own stable currency, BUSD, in September last year.
During the same period, the supply of USDT, Tether’s stablecoin, increased 18 percent to $84 billion. New non-crypto domestic competitors like PayPal are also increasing competition in this space.
“I hope it will see more participation not only from internet payment companies, but also from other areas of the financial services industry,” Allaire said.
