circle: Use commercial banks as an anchor to open up and offline financial scenarios on the chain

The news that circle is about to become a fully-reserved national commercial bank, Fatty Brother saw it last night, and originally wanted to send it to all of you in WeChat group, but because it was too late, he gave up. This matter is actually very big and will have a profound impact on the development of the blockchain industry.

First, it will bring abundant cash assets to the entire blockchain world.

Circle’s boss also said that the USDC circulation is expected to increase by hundreds of billions in the next few years, while the current USDC circulating on the market is about 28 billion. In other words, in the next few years, USDC circulation will increase by about 10 times, which is a very terrifying increase.

The probability of the currency price entering the long bear sluggish situation will be very small. This view has already been told to you guys before the start of this round of Mavericks market.

circle: Use commercial banks as an anchor to open up and offline financial scenarios on the chain

Circle’s recently released USDC reserve asset composition chart

Second, use commercial banks as the anchor of the physical world to open up the financial scenes on and off the chain. We know that there are many traditional banking business scenarios, such as deposits, transactions, clearing, custody, wealth management, guarantees, asset management, and so on. With a commercial bank, cirlce is like having its own “revolutionary base” in the financial world under the chain, and many businesses can be on-chain with lower compliance costs.

Look at the huge stakeholders behind it, IDG Capital, Breyer Capital, General Catalyst Partners, Baidu, CICC Jiazi, Everbright Holdings, Wanxiang, CreditEase, FTX, Digital Currency Group, Fidelity Management, etc. Cirlce is no shortage of resources and supporters to do things.

Third, in the next few years, it will become the main spokesperson and executor of the Fed in the blockchain world.

Circle’s operations have been under the supervision and risk management requirements of the Federal Reserve, the U.S. Department of the Treasury, the U.S. Currency Supervision Agency (OCC) and the U.S. Federal Deposit Insurance Corporation (FDIC). Naturally, the relevant policies of the US financial regulatory agency represented by the Federal Reserve will radiate to the blockchain world through the circle channel and affect the financial order of the blockchain world.

The TEDA company behind USDT is more difficult, the way to make money is relatively wild, and the historical reputation is not very good. Although the United States relaxed the issuance of compliant stablecoins last year, and there are many compliant stablecoins similar to USDC on the market, under the Matthew effect, the development speed is not as fast as circle.

Fourth, it will bring positive market pricing for circle’s listing.

In July of this year, Circle (CRCL.US) announced that it would merge with SPAC company Concord Acquisition (CND.US) for listing. Circle will be listed on the New York Stock Exchange. The transaction is expected to be completed in the fourth quarter. After the listing, the transaction code will be changed to “CRCL”.

Fifth, the rash development stage of the blockchain will gradually come to an end. Bosses who want to make money must be compliant and professional.

From the development path of circle, it is not difficult to find that the logic of making money in the blockchain industry is changing. In the past, everyone could get money by just grabbing a scoop, but now it needs to be compliant and professional to eat meat. Compliance and professionalization require a lot of resources and effort. The average boss will feel more distressed and lack that vision, which means that the pattern that established the poker boss in the reckless era will be reshuffled.

As an investor, we should also have this vision and thinking, keep up with this changing trend, and find our own era.


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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