USDC's Market Challenge: Circle's Plan To Revitalize Its Stablecoin As Competition Rises

Circle, the issuer of the stablecoin USDC USDC/USD, has introduced the Circle Alliance Program. This initiative aims to unite businesses, institutions, and protocols across various sectors such as fintech, traditional finance, consumer applications, payments, banking, and Web3.

As detailed in their blog post, to join the Alliance, participants are required to utilize Circle’s stablecoin and Web3 services on a global scale.

USDC's market cap in the past month has seen a drop of 5% reflecting the increasing competition in the rapidly growing stablecoin market. This comes on the heels of Circle considering an IPO, valued at $9 billion, as early as 2024 after it failed a SPAC merger in 2022.

Bloomberg reports that USDC's share of the $126 billion stablecoin market has narrowed to less than 19% based on researcher CCData. On the other hand, Tether’s market share has widened from 48% at the start of 2023 to 69% today.

Also Read: Circle Announces Upgrade For USDC, EURC Stablecoins: Here Are The Changes In Store

Circle says the Alliance will lead to high usage of USDC and expand cross-border payments. Circle boasts more than 250 partners in 40+ countries and the company says the Circle Alliance Program will help in solving real-world challenges, extend access to digital dollars, and provide digital financial services.

With the Alliance Program, members will receive dedicated support, incentives, access to Circle’s emerging products, and insights on the latest developments in the world of digital finance. Also, the members will be provided with tools to merge Web3 services and expand access to digital dollars with USDC.

Separately, Circle announced its zero-fee minting facility, Circle Mint, only in Singapore as it has secured the Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). The facility will also enable a smooth transition of fiat funds and automatic conversion to USDC. Circle Mint Singapore looks to expand access to regional banks for almost instant settlement in the upcoming future.

Read Next: Circle Partners With BitoGroup, Taiwan FamilyMart: Convert Loyalty Points To USDC Coin