Circle chose to bind the largest distribution channel of encrypted exchanges—Binance. This also means that the previously biggest concern, that Circle’s revenue would always need to be split with Coinbase, has found a good solution. Typically, other exchanges can negotiate in a similar way.
As for the OUSD stablecoin alliance initiated by Stripe, it is mainly focused on traditional financial payment areas. To break into the core position of crypto exchanges is extremely difficult for other stablecoins—two stablecoin growth channels are separate, and at least so far there doesn’t seem to be as much of the kind of interest conflict that people have seen. The whole market is still early; growth rates have not slowed down, so it won’t affect Circle’s valuation logic.
Crypto exchanges starting to pursue stock trading against USDC demand is happening very quickly. For compliant exchange and redemption, they use USDC channels, not USDT channels. This is a shift in a new trading scenario, breaking the previous monopoly of USDT trading pairs. Binance’s basic trading pairs for stocks are all based on USDC. If you hold other stablecoins, the trades effectively help automatically exchange them in the background.
Binding to an exchange means binding to the largest growth of stablecoins—entering behind the US stock market’s compliant redemption. This breaks the previous monopoly of USDT trading pairs. In the future, USDC’s market share should continue to increase.
As for the OUSD stablecoin alliance initiated by Stripe, it is mainly focused on traditional financial payment areas. To break into the core position of crypto exchanges is extremely difficult for other stablecoins—two stablecoin growth channels are separate, and at least so far there doesn’t seem to be as much of the kind of interest conflict that people have seen. The whole market is still early; growth rates have not slowed down, so it won’t affect Circle’s valuation logic.
Crypto exchanges starting to pursue stock trading against USDC demand is happening very quickly. For compliant exchange and redemption, they use USDC channels, not USDT channels. This is a shift in a new trading scenario, breaking the previous monopoly of USDT trading pairs. Binance’s basic trading pairs for stocks are all based on USDC. If you hold other stablecoins, the trades effectively help automatically exchange them in the background.
Binding to an exchange means binding to the largest growth of stablecoins—entering behind the US stock market’s compliant redemption. This breaks the previous monopoly of USDT trading pairs. In the future, USDC’s market share should continue to increase.