Circle, a leading USDC stablecoin issuer, has found a new platform to replace Signature Bank’s Signet service. The closure of Signet by regulators in mid-March had created systemic risks after the collapse of Silicon Valley Bank (SVB), which led to the sale of Signature’s assets to Flagstar Bank.
As a result, Circle now plans to use Tassat’s Customers Bank Instant Token (CBIT) platform to provide the same level of instant settlement as Signet. This move has been confirmed by Jeremy Allair, the CEO of Circle.
Benefits of CBIT Platform
The CBIT platform offers many benefits to USDC users. It provides the same level of instant settlement as Signet and operates 24/7, allowing USDC holders to transfer funds between fiat currencies and cryptocurrencies around the clock.
Jeremy Ellire, the CEO of Circle, believes that eventually, USDC users will be able to operate outside of the traditional banking system, keeping their working capital in blockchain treasuries and not dependent on bank schedules.
CBIT platform enables users to apply directly to a counterparty anywhere in the world, offering more flexibility and accessibility than traditional banks. According to Ellire, “USDC operates 24/7. You can apply directly to a counterparty anywhere in the world, and this is much better than what you get in your bank.”
USDC Market Capitalization and Future Plans
The USDC stablecoin issued by Circle is now the second-largest stablecoin by market capitalization, behind Tether (USDT). In the summer of 2022, the total value of USDC reached $56 billion, but as of April 26, 2023, it has roughly halved to $30.7 billion. Previously, Ellire stated that the banking crisis and regulatory issues in the US crypto industry are the main factors that led to the decline in USDC market capitalization.
Despite the replacement of Signet, Circle continues to look for global banking partners. The company aims to expand its reach and provide more value to its customers. The partnership with Tassat’s CBIT platform is a step in the right direction and demonstrates Circle’s commitment to providing its users with the best possible experience.
The replacement of Signet with Tassat’s CBIT platform is a significant development for Circle and its USDC stablecoin. The CBIT platform offers USDC users the same level of instant settlement and flexibility as Signet, providing greater accessibility and convenience.
The move also demonstrates Circle’s commitment to innovation and its customers. With this development, Circle is well-positioned to continue providing value to its customers and expand its reach in the global crypto industry.
