Circle issued USDC has become one of the fastest-growing stablecoin in the crypto market. The company is all set to go public on Nasdaq later this year after finalizing a SPAC acquisition deal a couple of weeks back giving it a $4.5 billion valuation. With a clear aim to dominate the crypto market USDC is focusing on transparency.
Circle CEO Jeremy Allaire shared the company’s plan to expand transparency on USDC’s reserves. Allaire revealed that with its upcoming public listing it will start filing quarterly audited financials and management disclosures that will be required as an SEC-regulated public company that will include USDC reserve composition disclosures.
As I shared just over a week ago, we are expanding our transparency on USDC Reserves. You can find the expanded table of reserves assets in our May attestation report: https://t.co/dYCFnnxG82
— Jeremy Allaire (@jerallaire) July 20, 2021
USDC has become the fastest-growing stablecoin in 2021 with $26.5 billion in circulation. The stablecoin has grown by 3,400% facilitating $785 billion in on-chain transactions. It only stands behind market leader USDT which has $64 billion in market cap.
USDC also aims to share its USDC reserves transparency report on-chain using oracle. Allaire said,
We are thinking about ways to share this in an on-chain, Oracle-linked format, as well as expanding and publishing detailed analytics on the core liquidity profile of USDC. e.g. history of creation and redemption behavior compared against market conditions.
USDC Eyes Stablecoin Market Dominance
USDC’s progress and focus on transparency come at a crucial juncture when the governments around the globe are increasingly looking to regulate the stablecoin market. USDC’s progress could also hamper USDT’s market dominance given the dominance of the former in the defi market and increasing market adoption.
USDT has infamously struggled with regulations for quite some time now. Even though it has recently settled its lawsuit with NYAG that accused it of mismanagement of funds in the Bitfinex case. NYAG settled the case with an $18.5 million fine. Tether, the USDT issuer has also been accused of not maintaining 1:1 USD reserves. Tether has since then released an independent audit report of its reserves, however, the FUD refuses to die down.
As the Stablecoin market becomes more competitive with regulations on its way, USDC might overtake USDT as it gains more exposure after public listing.