Circle preps $1B war chest to deal with market threats from PayPal and others

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Company revenue is up despite the increased competition, but USDC has lost a significant amount of market cap since the start of 2023.

) stablecoin, a digital token similar in design to regular cryptocurrency but backed entirely by fiat — in this case, the United States dollar.from interest on its cash holdings and through its treasuries services. For the first half of 2023, Circle had a reported revenue of $779 million, surpassing its total revenue of $772 for 2022.

Despite this, the company has seen its market share in the stablecoin space decline from $45 billion at the start of 2023 to $26 million in just seven months. Allaire attributes this decline to cryptocurrency exchange Binance’s decision to pull backing from USDC in favor of its own token and other unfortunate events in the market. “The Terra collapse helped us; the Binance forced-conversion hurt us,” the Circle CEO told Bloomberg, adding that “the FTX collapse sort of helped us, and then the failure of regional banks hurt us.”, Circle launched a wallet-as-a-service API for developers as part of its current ongoing Web3 initiatives.

 

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