- Circle and MHC Digital aim to expand USDC access for institutional investors in Australia and the Asia Pacific.
- MHC Digital will offer wholesale clients cost-effective USDC access.
- USDC has over $33 billion in market cap and has facilitated over $16 trillion in on-chain transactions.
Crypto firm Circle and MHC Digital Group are about to team up in a new endeavor aimed at extending the reach of Circle’s US Dollar Coin (USDC) to institutional investors in Australia and the broader Asia Pacific region. According to the announcement, MHC Digital will be focusing on wholesale clients only, providing the most cost-efficient solution to access USDC.
USDC is a fully reserved and transparent stablecoin issued by Circle through regulated entities and backed 1:1 by US dollars. It has become one of the safer forms of digital currency for institutional use. Until July 2024, over $33 billion was in circulation, making USDC one of the most widely used stablecoins within the global stablecoin markets. In this agreement, MHC Digital tries to develop new USDC use cases that primely focus on institutional investors.
Mark Carnegie, founder and executive chairman of MHC Digital Group, pointed to the potential of the crypto space in global payments as cost-effective compared to traditional systems. He further showed his excitement over the partnership, claiming that Circle’s position in the regulated stablecoin sector makes it a valuable partner for MHC’s mission.
Meanwhile, Kash Razzaghi, Chief Business Officer of Circle, elaborated on the gaining momentum for digital assets in the Asia Pacific region, a digitally-forward and pre-positioned region ready for a shift in financial technology. Razzaghi sounded very confident that this cooperation will mark a new era in digital finance across the region.
Circle’s USDC: Facilitating Trillions in On-Chain Transactions
Stablecoins like USDC have become increasingly important in global finance, now accounting for 40% of all blockchain transactions. With a market capitalization of $164 billion, stablecoins have been recognized for their role in revolutionizing digital payments, providing a stable and transparent alternative to traditional currencies. USDC alone has facilitated over $16 trillion in cumulative on-chain transactions, demonstrating its growing use as a store of value and unit of exchange.
This partnership also coincides with some imminent regulatory changes to take place in Australia. The Australian Treasury foreshadowed that new rules related to the licensing of cryptocurrency and custody will be there by the end of 2024, which may also include stablecoin regulations. While Carnegie has been vocal about the need for regulation, it is already well-set when those changes take place via MHC Digital’s licensed operations.
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