Circle has become a key player in the on chain finance sector through its stablecoin USDC. The USDC is 1:1 linked to the US dollar, and the reserve consists of cash and short-term US treasury bond bonds. The technological advantages of USDC include low cost and instant settlement, which many companies use as a practical alternative for enterprise payments and cross-border remittances. USDC supports 24-hour real-time fund transfer without the complex procedures of traditional SWIFT networks, helping businesses overcome the limitations of traditional financial infrastructure.
However, Circle’s current business structure has some limitations. BNY Mellon serves as the reserve custodian of USDC, while BlackRock is responsible for asset operation and management. This structure outsources core functions to external organizations. Although Circle can generate interest income, its direct control over assets is limited. In addition, its current income model is highly dependent on a high interest rate environment. To achieve long-term sustainability and revenue diversification, Circle needs more independent financial infrastructure and stronger operational authority.
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