The Rundown Deep Dive: What Circle Actually Does (And Why Stablecoins Matter)
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Jun 14, 2025 Explore the intriguing world of stablecoins and Circle's pivotal role in the future of finance. Discover how Circle's IPO has altered the landscape, positioning it against rivals like Tether. Learn about the challenges that come with combining traditional banking and cryptocurrency, and the potential legislative changes on the horizon. This discussion highlights why stablecoins matter and how they could reshape global financial systems.
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What Are Stablecoins?
- Stablecoins are digital assets pegged to stable assets like the US dollar and live on blockchain.
- They combine crypto benefits with traditional dollar stability for global money movement.
Stablecoins’ Growing Use Cases
- Initially, stablecoins served crypto traders for quick dollar movement between exchanges anytime.
- Now stablecoins increasingly help people in emerging markets protect wealth from local currency instability.
Circle's Revenue Model
- Circle makes money from the interest earned by investing cash backing USDC in safe assets.
- Reserve income accounted for 99% of Circle's revenue, but it's dependent on Federal Reserve interest rates.