American stablecoin issuer Circle is relying on a $1 billion dollar cash buffer to help reverse a decline in circulating supply and compete with a wave of newcomers. Competition in the stablecoin market is heating up, buoyed by the premise of potential regulations in the United States.
On Aug. 10, Bloomberg reported that Circle Internet Financial, the firm behind USDC, is betting on major global adoption of stablecoins.
Circle CEO on USDC Supplies
Circle CEO Jeremy Allaire told Bloomberg that the company has a $1 billion cash cushion to weather the challenges in the crypto industry. He said that a series of “tail-risk events” in the crypto industry have affected the adoption of USDC.
USDC supplies have shrunk 53% since their peak of $56 billion in June 2022. Around 26 billion USDC is circulating, giving the stablecoin a market share of just under 21%.
Allaire…
