Circle published a report reviewing 22 and looking forward to 23, which first summarizes and then analyzes. The report concludes the following points:
1. By the end of the year, 20% of USDC cash savings will be transferred to funds in partnership with BlackRock
2. Cross-border transfer is the largest use case of USDC, and DeFi is the second largest. USDC has promoted at least 30 billion economic activities in 22 years.
3. USDC’s market value fluctuations are not closely related to other cryptocurrency prices. Less than 10% of USDC is in CEX.
4. Different from other stablecoins, USDC is mainly used for transactions and transfers, not speculation
5. Circle launched TRUST, VERITE and banned Tornado Cash for more compliance and transparency
6. Cooperate with major financial institutions and payment institutions to expand the popularity and use of USDC
personal opinion:
1. Circle’s ambition is clearly stated in the report. It will issue a Euro stablecoin next. If Tether does not audit quickly and dispel FUD, USDC will be the only dominant currency in two years.
2. Circle is now strongly supporting developers to develop cross-chain transfers, transactions, NFT and other functions. If successful, it will be a game changer
3. Circle wants to dominate the market and is too close to the US and EU governments, which is a bit contrary to its original intention. It will destroy the healthy competition with other stablecoins and deprive users of the option of holding stablecoins in a diversified manner.