ICE, the Parent Company of the New York Stock Exchange, Partners with Circle to Introduce Stablecoins into Capital Market Applications
As the U.S. Stablecoin Legislation Is Expected to Be Introduced in 2025, Competition Among Stablecoin Issuers Intensifies
Circle has announced that it has signed a memorandum of understanding with the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, to integrate Circle’s USDC and its tokenized money market fund USYC into ICE’s global capital market mechanisms.
Circle Signs Memorandum of Understanding with ICE
The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, reported revenues of $9.3 billion in 2024 and has a market capitalization of $101 billion. The exchange has signed a memorandum of understanding with Circle, the issuer of the world’s second-largest stablecoin, to explore the integration of Circle’s products into its trading and clearing empire.
Under the agreement, ICE will evaluate the use of Circle’s flagship products, including the $60 billion USDC and the tokenized money market fund USYC, in its derivatives exchanges, clearinghouses, and data services to develop new markets and products. USYC was initially launched by Hashnote, which Circle acquired in January. USYC offers a yield of 3.8%, supported by short-term U.S. Treasury bills and repurchase/reverse repurchase activities.
(Circle Acquires Hashnote to Facilitate Seamless Transition Between Tokenized Cash USDC and Money Market Fund USYC)
NYSE President Lynn Martin Comments
NYSE President Lynn Martin stated, “We believe that as digital currencies increasingly become accepted by market participants as a viable equivalent to the U.S. dollar, Circle’s stablecoin and tokenized digital currency can play a larger role in capital markets. We are excited to explore the potential use cases for USDC and USYC in ICE markets.”
Stablecoin Market Capitalization Surges, Processing Amounts Double That of Visa
The market capitalization of stablecoins is skyrocketing. The leading stablecoin, Tether’s USDT, has reached a market capitalization of $144 billion, while Circle has recently surged ahead with USDC’s market capitalization hitting $60.3 billion, finally recovering from the lows during the Silicon Valley Bank run and setting new historical highs.
However, the real appeal lies in how these tokens are transforming from convenient tools for cryptocurrency traders to popular mediums for fast and cost-effective cross-border payments. According to data from Dune, as of February, stablecoins processed transfer amounts as high as $35 trillion annually, double that of Visa’s transaction volume.
U.S. Legislation Expected to Open Doors for Stablecoin Market Competition
Traditional finance is paying attention to this sector. Bank of America CEO Brian Moynihan recently stated that if the U.S. passes relevant legislation, the bank would consider issuing a stablecoin. Fidelity Investments has begun researching a stablecoin under its digital assets division, which currently offers custodial and trading services for Bitcoin, Ethereum, and Litecoin.
The Trump administration viewed stablecoins as a key avenue to maintain the dollar’s global dominance. Legislation currently under consideration in Congress is expected to provide a clear regulatory framework for stablecoins. Coincidentally, the Trump family has reportedly profited at least $400 million from the crypto project World Liberty Financial, which also plans to launch the USD1 stablecoin backed by U.S. Treasury bonds, dollars, and other cash equivalents.
(Trump’s WLFI Partners with Custodian BitGo to Launch Institutional-Grade Stablecoin USD1: Solidifying On-Chain Dollar Dominance)
Risk Warning
Investing in cryptocurrencies carries a high risk, with prices potentially experiencing significant volatility, and you may lose your entire principal. Please assess risks with caution.
