TL;DR: Circle Internet Financial, the issuer of USDC, is phasing out support for individual accounts to mint stablecoins, aligning more closely with Tether’s practice. Retail users can still access USDC through brokerages, exchanges, and digital wallets.
Circle Restricts Stablecoin Minting for Individuals, Mirroring Tether’s Approach
In a move that brings it closer to the practices of its main competitor, Tether, Circle Internet Financial has announced its decision to curb services for individual accounts that mint stablecoins. This decision, as conveyed by a Circle spokesperson to CoinDesk, signifies the phasing out of support for what they term as “legacy consumer accounts.” The spokesperson clarified that this decision will not affect business or institutional Circle Mint accounts.
Institutional Focus Over Retail
While Circle has been a significant player in the stablecoin arena, it seems the company is now pivoting its focus. As of now, Circle is only accepting qualified institutional clients, leaving individual retail customers out of its direct purview. The spokesperson emphasized that Circle “does not serve retail consumers directly.” However, this doesn’t mean that retail users are left in the dark. They can still access USDC, but this would be through brokerages, crypto exchanges, and digital asset wallet services.
Social Media Buzz and Speculations
The crypto community is no stranger to rapid information dissemination, especially on platforms like X (formerly known as Twitter). Screenshots from a customer email were shared on this platform, showing Circle’s communication to an individual account holder. The email highlighted the discontinuation of wiring and minting abilities by November 30, leading to speculations about a potential crackdown on accounts.
Aligning with Tether’s Practice
This move by Circle seems to be in line with the practices of its main competitor, Tether. Tether has set a precedent by limiting USDT minting and redemptions with a minimum threshold of $100,000. When it comes to market capitalization, USDC, with a supply of $25 billion, stands as the second-largest stablecoin offering. However, it’s worth noting that its market share has seen a significant decline this year. While USDC lost 43% of its market capitalization year-to-date, USDT witnessed a surge, reaching an all-time high of over $84 billion.
Embracing a Decentralized Future
In the ever-evolving landscape of digital finance, companies like Circle are making strategic decisions to align with market demands and competitive pressures. While centralized entities continue to pivot and adapt, the essence of a decentralized future lies in empowering individuals. The true spirit of digital assets is about breaking barriers, ensuring inclusivity, and fostering a financial ecosystem where power is redistributed from centralized entities to the hands of individuals.
Thank you for reading “Circle’s Shift Away from Retail Minting“.
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Sources:
- Circle Curbs Stablecoin Minting for Retail Users, Moving Closer to Tether’s Practice
- Circle Curbs Stablecoin Minting
- Circle wanted to create a financial revolution
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