Circle, the issuer of U.S. Dollar Coin (USDC), has launched a suite of blockchain-based compliance products. This was announced by Circle CEO Jeremy Allaire on September 24 via social media.
Compliance Products
The platform, called Compliance Engine, includes transaction screening and monitoring tools to identify suspicious transactions and a service specializing in compliance with Know Your Customer (KYC) requirements such as the United States’ Travel Rule.
Existing Tools and New Networks
The Compliance Engine adds to Circle’s existing suite of Web3 developer tools, such as its programmable wallet and smart contract platform, all of which center around Circle’s core USDC stablecoin product. Initially, the platform will operate on blockchain networks including Avalanche, Ethereum, Polygon PoS, and Solana.
Tokenized Assets Market
Accelerating the adoption of USDC is crucial for Circle, especially given the competition from other stablecoins like Tether’s USDT. In August, PayPal’s USD-backed PYUSD added pressure to the market with its stablecoin, reaching over $1 billion in market capitalization. Circle is also focusing on accelerating the tokenization of real-world assets (RWA), including investment funds. Popular tokenized RWA include off-chain money market funds, such as BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and Franklin OnChain U.S. Government Money Fund (FOBXX), with assets under management of approximately $520 million and $430 million, respectively.
The launch of Compliance Engine represents a significant step for Circle in strengthening its position in the stablecoin market and enhances its compliance capabilities.
Comments