Circle’s USDC stablecoin has seen a significant drop in circulation, going from $45 billion to $26 billion as summer comes to an end. To prepare for potential market decline and competition from traditional finance and technology industries, Circle CEO Jeremy Allaire has revealed that the company has a $1 billion cash reserve. Allaire welcomes the increase in competition, stating that it will drive more companies into the stablecoin space. Circle’s primary revenue comes from interest on its cash holdings and treasuries services, with reported revenue of $779 million for the first half of 2023. However, the company’s market share in the stablecoin space has declined due to events such as Binance pulling backing from USDC. Despite this, Circle recently launched a wallet-as-a-service API for developers as part of its ongoing Web3 initiatives.
