Circle prepares for mass adoption of crypto while USD Coin trading volume increases by 954%

The leading crypto financial services company behind the USD Coin stablecoin (USDC), Circle , intensifies competition in the stablecoin market as the company estimates a mass adoption of cryptocurrencies in 2-3 years. Meanwhile, USDC’s trade volume has already risen 954% this year.

Circle 2020 will mainly concern stablecoins, in particular USDC, which is the much discussed product that arises from the collaboration between Circle and the main Coinbase cryptocurrency exchange, also known as the CENTER sector consortium. Next year, the company will focus on new global payments, custody and application programming interfaces (API) portfolios for stablecoins, things that should be offered as services to businesses and developers.

“Stablecoin, third-generation blockchain and deep global political commitment suggest that the mass market phase of cryptocurrency adoption is approaching in the next two or three years,” write co-founders Sean Neville and Jeremy Allaire.

And it appears that the company is seriously preparing for this phase, as USDC’s trading volume has skyrocketed this year.

We examined the trading volumes for the first 3 stablecoins by market capitalization, (USDT, USDC and PAX) – specifically the average daily volume in January and December (1st-17th) for each of the three. This is what we have:

However, although USDC experienced the largest increase in trading volume and despite being the second largest market capitalization stablecoin, PAX’s trading volume is even greater at the end of 2019.

But the competition in the stablecoin market is far from over.

Circle also plans to bring its USDC, Pay, Invest and Trade to the fore and to the center in 2020 and plans to provide services through APIs, which the platform believes will “accelerate the adoption of stablecoins and USDCs”.

To do this, Circle recently took several steps, as indicated in its blog post:

• sold the Circle Trade OTC business to the crypto exchange Kraken ;
• sold and transformed the exchange Poloniex in an autonomous company, in order to focus on stablecoins and the “US regulatory reality”;
• once the autonomous Circle Pay application has been completed, although the technologies of the underlying platform will be part of our new stablecoin platform services.

Finally, the platform also announced that Neville will step out of his position as co-CEO, but will remain connected to the company as an independent director on Circle’s board of directors. In addition, Coinbase and Circle opened their doors to the new USDC issuer in June.

However, some experts raise questions about the future of stablecoins, arguing that “fiat-based stablecoins are very likely to become redundant” and that “stablecoins could be crushed by harsh regulatory environments in major countries.” There is also the long-term threat of digital currencies issued by central banks, which could compete directly with stablecoins in terms of providing non-volatile digital assets and fiat-crypto onramps.
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Find out more: The EU confirms its firm position on all Stablecoins, not only on Facebook’s Libra