Circle Launches Compliance Platform
27 Sep, 2024 ● Crypto News
Circle Internet Financial, the company behind US Dollar Coin (USDC), has introduced a set of blockchain-based compliance tools aimed at helping companies develop onchain solutions while adhering to strict compliance standards.
This announcement was made in a September 24 social media post by Circle CEO Jeremy Allaire.
The new platform, named Compliance Engine, offers tools for transaction screening and monitoring to detect suspicious activities, as well as services focusing on Know Your Customer (KYC) compliance, including adherence to the United States’ Travel Rule.
“We’ve built up tremendous capabilities in this area over the past decade, and we’re now taking those capabilities and exposing them to developers and operations teams that are building financial applications onchain,” Allaire said.
The Compliance Engine expands Circle’s existing Web3 developer toolkit, which includes features like a programmable wallet and smart contract platform, all designed around Circle’s core product, the USDC stablecoin.
According to Circle’s website, the Compliance Engine will initially operate on blockchain networks such as Avalanche, Ethereum, and Solana.
This product launch represents Circle’s latest effort to boost USDC adoption as it competes with Tether’s USDT for market dominance.
Currently, USDC has a market capitalization of around $36 billion, significantly trailing behind USDT, which boasts over $119 billion, according to CoinMarketCap.
Adding to the competitive landscape is PayPal’s US dollar-backed stablecoin, PYUSD, which reached a $1 billion market capitalization in August.
Compliance is a key focus for Circle, as it seeks to accelerate the adoption of tokenized real-world assets (RWAs), such as tokenized investment funds.
RWAs are projected to become a multi-trillion-dollar market in the coming years, according to a Polygon executive in an August interview with Cointelegraph.
Some of the most popular tokenized RWAs include claims on off-chain money market funds, which offer low-risk yields on US dollars and frequently accept USDC for payments.
Among the largest funds by assets under management are BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain U.S. Government Money Fund (FOBXX), with AUMs of approximately $520 million and $430 million, respectively.
Sources:
https://cointelegraph.com/news/usdc-issuer-circle-onchain-compliance-platform
