Circle has partnered with Genesis Global Trading, a subsidiary of the Digital Currency Group (DCG), to develop a USDC stablecoin lending product.
As part of the agreement, DCG is going to invest $ 25 million in Circle. The CENTER consortium, which includes Circle and the Coinbase exchange, is releasing a dollar-pegged stablecoin USDC on the Ethereum blockchain. In early July, its capitalization exceeded $ 1 billion.
Circle CEO Jeremy Allaire said Genesis Global Trading is the leading crypto-lending corporation today, and the new partnership is going to help Circle develop a quality product for trading companies that can use USDC to move funds faster. According to Coin Metrics, USDC supply has surged 162% in the past six months. However, USDC remains in the shadow of Tether (USDT), which dominates the $ 10 billion stablecoin market.
Allaire said further support for Genesis and DCG could help attract new players to Circle's services that are being developed around the USDC. Circle has focused on developing USDC over the past year. The organization previously operated the Poloniex crypto exchange and the Circle Trade OTC platform but decided to sell both of these assets in 2019.