Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has partnered with Circle to integrate the USDC stablecoin into ICE’s platforms. The collaboration, announced today, includes a memorandum of understanding to explore the use of USDC in clearinghouses, derivatives exchanges, and various financial services.
Lynn Martin, president of the NYSE, shared her belief that stablecoins are the future of finance. “We believe Circle’s regulated stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the US dollar,” she said.
The initiative aims to explore the adoption of USDC beyond crypto trading, seeking to integrate it into traditional financial markets such as bonds and money market funds.
USDC Gaining Market Share
Circle’s USDC, the second-largest stablecoin after Tether’s USDT, has been experiencing rapid growth. In the last three months, Circle minted $16.5 billion in new USDC, compared to $4.7 billion in new USDT. As a result, USDC now holds a 25.4% market share, up from 20.7% just a few months ago. The new partnership with ICE is seen as a key factor that could push USDC even further into mainstream finance.
Opportunities for USDC Integration
Jeremy Allaire, Circle’s CEO, highlighted the potential of the partnership, saying, “ICE’s reputation and global network across markets offer a unique pathway for Circle to integrate USDC into major new use cases, and we are thrilled for the opportunity to innovate together.” USDC is already widely used, with over 600 million wallets supporting it globally.
Regulatory Advances and Global Expansion
Circle has also been making significant strides in regulation. It was the first stablecoin issuer to comply with Europe’s MiCA rules, setting it apart from Tether, which has been delisted from several European exchanges. Additionally, Circle recently received approval to launch USDC in Japan, and it’s already listed on the SBI VC Trade exchange, with plans for further expansion.
Stablecoin Growth in 2024
Stablecoins have experienced impressive growth in recent years, and 2024 was a record year. They processed more transactions than both Visa and Mastercard combined. The total stablecoin supply has now surpassed $200 billion, accounting for 1% of all U.S. dollars in circulation. The ICE-Circle partnership is expected to accelerate this trend, helping stablecoins cement their role in the future of finance.
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