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<p class="is-style-lead">In response to a shrinking market share and increasing competition, Circle is strengthening its position with a $1 billion cash buffer to counteract challenges posed by dominant non-crypto entities like PayPal.</p> 
<h2 class="wp-block-heading" id="circle-s-usd-coin-faces-market-pressure">Circle’s USD coin faces market pressure&nbsp;</h2> 
<p>The move is in response to a concerning decline in the circulation of Circle’s USD Coin (USDC), dropping from $45 billion at the beginning of the year to $26 billion. In contrast, Tether’s USDT grew in the same period. </p> 
<p>Circle’s CEO, <a href="https://crypto.news/circle-ceo-jeremy-allaire-optimistic-about-bitcoin-etf-approvals/" rel="noopener noreferrer nofollow">Jeremy Allaire</a>, noted that Binance, the world’s top crypto exchange, played a significant role in this decline by shifting away from USDC to promote BUSD a year ago.</p> 
<p>Stablecoins have proven valuable for traders. However, their usage in everyday consumer transactions remains limited. </p> 
<p>This is partly due to reduced investor trust following various scandals in the crypto industry. </p> 
<p>One notable incident was Circle’s disclosure of its $3.3 billion exposure to the struggling Silicon Valley Bank (SVB) in March, which briefly caused the USDC to depeg.</p> 
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   <p lang="en" dir="ltr">BREAKING coverage from <a href="https://twitter.com/Bloomberg?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Bloomberg</a> on <a href="https://twitter.com/circle?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@circle</a>. <br><br>"Circle had $779 million in revenue in the first half of the year, already surpassing the $772 million for all of 2022. The private firm generated $219 million in adjusted earnings before interest, taxes, depreciation, and…</p>— Jeremy Allaire (@jerallaire) <a href="https://twitter.com/jerallaire/status/1689640011069902848?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 10, 2023</a> 
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<p>Circle generates its main revenue by earning interest on assets supporting stablecoins, such as dollar deposits and short-term treasuries. </p> 
<p>In the first half of 2023, the company reported revenue of $779 million, surpassing its total for 2022.&nbsp;</p> 
<p>Circle’s CEO expressed confidence in the company’s financial stability, given that it has over $1 billion in cash as of June. </p> 
<p>He noted that the unexpected increase in funding provides the company with substantial resources for investing, expanding revenue streams, creating new products, and pursuing global <a href="https://crypto.news/circle-targets-asian-market-in-business-expansion/" rel="noopener noreferrer nofollow">expansion</a> effectively.</p> 
<p> You might also like: <a href="https://crypto.news/circle-launches-beta-test-of-wallet-as-a-service-for-developers/" rel="noopener noreferrer nofollow"> Circle launches beta test of wallet-as-a-service for developers </a> </p> 
<h2 class="wp-block-heading" id="circle-s-ceo-shares-insights-on-its-plans">Circle’s CEO shares insights on its plans</h2> 
<p>Unlike competitor Paxos Trust Co, the company does not intend to offer white-label solutions. Instead, the focus will be on forming strategic partnerships to promote the broader adoption of the USDC. </p> 
<p>Furthermore, despite potential Federal Reserve interest rate policy changes, Allaire remains optimistic about Circle’s prospects.</p> 
<p>In line with the push for clarity, Circle has also taken proactive steps by appointing Deloitte as its auditor and committing to regular financial reporting. This move follows the recent termination of Circle’s merger plans with Concord Acquisition Corp.</p> 
<p><a href="https://crypto.news/circle-eyes-stablecoin-launch-in-japan-as-new-policies-take-effect/" rel="noopener noreferrer nofollow">Circle</a> is also expanding its revenue sources, as evident from its recent launch of a crypto wallet service after its 2022 acquisition of CYBAVO.</p> 
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 <div class="wp-block-embed__wrapper"> <iframe title="What’s The Future Of Stablecoins? w/ Evan Kuo, CEO of Ampleforth - Ep.43" width="1020" height="574" src="https://www.youtube.com/embed/Gd3viBlx3ek?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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<p>According to Allaire, stablecoins are the future of online monetary transactions, and recent actions by PayPal are just the beginning. </p> 
<p>The CEO predicts increased interest from online payment platforms and a wider range of financial service companies. However, the entry of more players may also lead to increased scrutiny and demands for traditional transparency measures such as audits.</p> 
<p> Read more: <a href="https://crypto.news/circle-ceo-reveals-massive-usdc-adoption-outside-us/" rel="noopener noreferrer nofollow"> Circle CEO reveals massive USDC adoption outside US </a> </p>

USDC issuer creates $1 billion cash buffer days after PayPal’s entry

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