Circle, one of the startups backing the USDC stablecoin, is forming a partnership agreement with Genesis Global Trading a subsidiary of Digital Currency Group according to an announcement made recently. As per the partnership agreement, the company Circle will receive an amount of $25 million in funding from Digital Currency Group. The funding aims at driving the mainstream adoption of the USDC stablecoin.
Pushing USDC Mainstream adoption
At the beginning of July, the USDC’s token supply reached the one billion figure and now the stablecoin backer, Circle wants to push further its growth and mainstream adoption. That is why the startup has joined hands with Genesis Global Trading in order to seek investment from the DCG group who is a regular investor of the firm. This time DCG will invest an amount of $25 million in the company according to the agreement.
As the partnership between these two firms is focused on an initiative of product development, therefore, the funding will target yield and lending services of Circle’s USDC stablecoin which will ultimately give a boost to the mainstream adoption of the stablecoin.
The funding and partnership will also help Circle increase its suits of products by launching new products.
Talking about the evolution of stablecoins, the CEO at Circle Jeremy Allaire said that those lending markets which are based on stablecoins will see significant growth. He said:
“We’re seeing the evolution from stablecoins as something that’s exclusively been in the crypto capital markets to really moving into a broader set of use cases in payments and commerce and financial applications around the world. The logical evolution is that lending markets built on stablecoins are going to grow significantly.”
USDC still has rivals in the market despite its supply growth
The USDC stablecoin has witnessed an impressive surge in its token supply. According to the data from Coin Metrics, in the last six months, the supply of this stablecoin has risen high by 162% while the YTD growth is 125%.
However, despite this impressive supply growth, the stablecoin is still facing competition from its rivals such as Tether and Facebook’s Libra stablecoin.