Stablecoin issuer Circle is expanding its native issuance of USD Coin (USDC) and deploying its Cross-Chain Transfer Protocol on the layer-1 blockchain Sui.

In a Sept. 17 X post, Evan Cheng, co-founder and CEO of Mysten Labs, revealed that his firm’s blockchain—Sui—has partnered with Circle to bring USDC to the network.

Cheng did not provide additional information on the partnership. However, market observers noted that the move would boost liquidity in Sui’s fast-rising ecosystem and further attract more users to the network.

Launched in 2023, Sui has quickly gained attention within the crypto space for its simplicity and recent high-flying moves, which include a partnership with automaker DeLorean to bring innovation to the automotive industry and usher the brand into the digital era.

Furthermore, crypto asset management firm Grayscale recently opened its Sui Trust for qualified investors.

USDC’s growing influence

USDC is currently the second-largest stablecoin, with a circulating supply exceeding $35 billion. According to Circle, USDC is supported on 15 blockchain networks, including Ethereum, Algorand, Arbitrum, Avalanche, Polkadot, Base, and Polygon.

Circle promotes USDC as a compliant digital asset offering robust user protections. The company recently announced plans to relocate its headquarters to New York City’s World Trade Center.

Despite its success, Circle has faced criticism. Blockchain investigator ZachXBT recently called out the company for delays in blacklisting a wallet tied to North Korea’s Lazarus Group.

In a Sept. 17 post on X, ZachXBT highlighted instances where Circle failed to safeguard the crypto ecosystem. He criticized the firm’s slow response in preventing malicious actors and its reluctance to assist users who accidentally transferred USDC to contract addresses due to poor user interface design.

ZachXBT stated:

“A large number of users have accidentally transferred USDC to the contract address on various chains due to bad UX in the ecosystem. While yes, it is the user’s fault, Circle does have the ability in the contract to transfer the funds back to the rightful owner, yet unlike their competitors, it will not help you.”

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Circle is looking to extend the use of its USDC stablecoin to the new high-flying Ethereum layer-2 blockchain network, Soneium, according to a Sept. 16 statement shared with CryptoSlate.

The move aims to make bridged USDC a integral token for value exchange on Soneium. This will utilize Circle’s Bridged USDC Standard, enabling the deployment of bridged USDC on Ethereum Virtual Machine (EVM)-compatible blockchains. Bridged USDC acts as a proxy for native USDC held on Ethereum.

Soneium, developed by Sony Block Solutions Labs, is an Ethereum Layer-2 blockchain that launched in August. The network is designed to be a versatile, general-purpose blockchain that blends elements from entertainment, gaming, and finance.

Jun Watanabe, Chairman of Sony Block Solutions Labs, highlighted the collaboration’s potential to transform digital entertainment and finance. He stated:

“This collaboration aligns ideally with our vision of creating a more interconnected and efficient digital ecosystem. We are excited about the potential this partnership unlocks, not just for technological advancement, but for delivering tangible benefits to Soneium and users worldwide.”

Circle CEO Jeremy Allaire echoed this sentiment, stating that the collaboration will accelerate the adoption of Circle’s stablecoin and blockchain technology. He said:

“This collaboration marks a significant milestone for Circle’s mission to  accelerate the adoption of our stablecoins and blockchain technology, and empower creators to flourish through secure, user-friendly Web3 experiences.”

The collaboration comes during Soneium’s period of rapid growth. Just a month after its launch, the network has already partnered with platforms like Chainlink to improve its services.

Over the past months, Circle’s USDC stablecoin has enjoyed growing adoption thanks to the growth of the Coinbase-backed Ethereum layer-2 network, Base. Data from Artemis shows that its monthly transfer volume has surpassed $587 billion during the past 30 days.

Circle’s USDC is the second-largest stablecoin with a circulating supply of around $35 billion, according to CryptoSlate data.

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Circle’s USD Coin (USDC) stablecoin has crossed the $16 trillion mark in total cumulative volume.

While this number falls short of traditional financial powerhouses like Visa, which processed over $12 trillion in payments just last year, it highlights the remarkable growth of stablecoins. Despite their relatively short existence, stablecoins have quickly established themselves as key players in the global financial market.

Stablecoins play an essential role in the crypto ecosystem. They facilitate the smooth transfer of funds, support seamless trading between tokens, and enable payments, especially for cross-border transactions.

Launched in 2018, USDC is the second-largest stablecoin by market capitalization, with $34.6 billion currently in circulation. Circle has strategically positioned USDC as a more regulatory-compliant stablecoin, differentiating it from competitors like USDT.

This approach has contributed to USDC’s dominance in transactions this year, surpassing Tether’s USDT despite having a smaller circulating supply. According to Artemis, USDC now accounts for roughly 50% of the total stablecoin transaction volume.

Solana fuelling USDC’s growth

USDC’s transaction volume is primarily driven by the Solana blockchain, which holds more than three-quarters of the stablecoin market share. Data from DeFiLlama indicates that USDC makes up about 65% of Solana’s $3.98 billion stablecoin supply.

A stablecoin dashboard created by Visa Inc., in collaboration with Allium Labs, shows that USDC’s transaction volume on Solana has soared to approximately $8.29 trillion since the beginning of last year. Its nearest rival, USDT on TRON, saw a volume of $7 trillion during the same timeframe.

This growth isn’t surprising, given Solana’s popularity for its speed and lower transaction costs, which have attracted interest from traditional financial players like PayPal.

The recent surge in memecoin trading and DeFi activities on Solana has further propelled its rise. Over the past few months, the market has even seen instances when trading activity on Solana surpassed Ethereum’s.

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Jeremy Allaire, the CEO of Circle, revealed that USDC Tap-to-Pay could soon be made possible on iPhones in response to Apple’s recent update, according to an Aug. 14 statement.

Allaire said:

“Tap to pay using USDC on iPhones incoming soon. Wallet devs, start your engines.”

Meanwhile, Allaire clarified that Circle has no direct relationship or partnership with Apple or Apple Pay.

On Aug. 14, Apple revealed that it will now permit third-party applications to use its NFC (Near Field Communication) technology for transactions. This update will allow alternative payment systems to compete with Apple Pay—the iPhone’s dominant payment option.

The announcement follows extensive regulatory pressure from entities such as the European Union. Apple confirmed the new feature will be available with the upcoming iOS 18.1 update. With this version, developers can use NFC contactless transactions through the Secure Element (SE) in their apps, independent of Apple Pay and Apple Wallet.

How USDC tap-to-pay will work

The USDC Tap-to-Pay application will utilize Apple’s newly available NFC technology for third-party developers. This change will enable various wallet apps, including those for Web3 or crypto, to use NFC for transactions.

According to Allaire, iOS wallets supporting USDC could streamline payments by allowing devices to exchange transaction information through a simple tap. For instance, a point-of-sale (PoS) system could communicate the iPhone’s blockchain address or payment amount, prompting the user to confirm the transaction using FaceID or another authentication method. The app would then process the payment via blockchain.

Allaire suggested that this development could facilitate direct USDC payments to merchants and enable transactions for other digital assets, such as NFTs or stablecoins like EURC.

Hence, he encouraged wallet developers to integrate the latest Apple iOS SDKs in preparation for the USDC Tap-to-Pay launch.

Crypto community welcomes initiative

Crypto community members have welcomed the initiative, stating that this would drive the next phase of crypto adoption.

Idan Levin, a partner at venture capital firm Collider VC, stated:

“Less clicks, tapping, meeting users where they are—each one of those will be another small step that will accumulate into a singular moment —billions of people using public blockchains.”

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Former President Donald Trump has begun accepting crypto donations for his re-election campaign, making him the first US Presidential candidate to adopt digital assets for funding.

According to a May 21 statement:

“This addition to President Trump’s already groundbreaking digital fundraising operation marks the first time a major party Presidential nominee has embraced cryptocurrency for donations.”

The website’s available information showed that crypto users could donate in different digital assets, such as Bitcoin, Ethereum, XRP, Cardano, Dogecoin, Shiba Inu, and others.

Crypto has become a pivotal topic in the lead-up to the November elections, with former President Trump and President Joe Biden expected to be the primary candidates for their respective parties.

The candidates have taken a diverging stance toward the emerging industry, with Trump openly supporting crypto and promising to foster its growth through proper regulation. Trump stated:

“Democrats, like Biden and his official surrogate Elizabeth Warren, continue to believe only government has the answers to how our nation leads the world.”

However, recent events suggest that the Biden administration may shift its long-standing hardline stance against the space.

Ethereum ETF

On May 20, reports surfaced that the US SEC might approve spot Ethereum exchange-traded funds (ETFs) — a stark pivot from earlier expectations.

Bloomberg Intelligence Analyst Eric Balchunas noted that the SEC’s turnaround might have political motivations, a view shared by many in the crypto community.

Variant Fund chief legal officer Jake Chervinsky said:

“If the spot ETH ETF is approved, it will be a true shock to everyone I know in DC who’s close to this process. That doesn’t mean it won’t happen. It means approval could signal a major shift in US crypto policy.”

Congressional development

Last week, US lawmakers from both parties united to overturn the SEC’s Staff Accounting Bulletin 121 (SAB 121) resolution despite President Biden’s stated intent to veto the bill.

Several crypto stakeholders have argued that the bulletin was controversial, as SAB 121 required financial institutions to safeguard customer assets and keep them on their balance sheets. Notably, the American Bankers Association (ABA) pointed out that the regulation made it difficult for banks to act as spot Bitcoin ETF custodians.

This rare bipartisan event precedes the upcoming Senate vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), widely considered the most significant piece of crypto-specific legislation likely to become law.

The FIT21 bill will establish a comprehensive regulatory framework for the digital assets industry in the US. The bill has widespread industry support from key players, including Coinbase, Kraken, and Andreessen Horowitz.

Moreover, the bill will establish a baseline for classifying digital assets as securities or commodities. It expands the CFTC’s authority to register and regulate digital commodities and requires the FTC and SEC to jointly issue rules for assets not otherwise classified.

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Stablecoin issuer Circle reportedly plans to shift its legal home to the United States from Ireland for undisclosed reasons, Bloomberg reported on May 15.

The firm has begun the relocation process by filing the required paperwork with the High Court of the Republic of Ireland.

Circle’s decision to shift to the US comes as a surprise, given the advantageous low corporate tax rates it enjoyed in Ireland. Additionally, the move could subject the crypto firm to a heavier tax load and confront it with the challenges of a less favorable regulatory landscape.

IPO plans?

Industry analysts have conjectured that the stablecoin issuer was shifting its base to the United States in anticipation of its potential initial public offering (IPO).

In January, the stablecoin issuer initiated the IPO process by filing for equity securities under a confidential status, aiming to transition into a publicly traded entity.

This involved submitting a draft registration statement S-1 form to the US Securities and Exchange Commission (SEC), a customary step for companies pursuing public listing, allowing them to fine-tune their strategies discreetly.

Circle has disclosed that specifics regarding the volume of shares and pricing remain pending. The IPO launch awaits review by the SEC and is contingent upon market trends and other relevant factors.

USDC growth continues

Meanwhile, its relocation plan arrives at a time when its USDC stablecoin is enjoying a notable uptick in overall network metrics.

According to data from DeFiLlama, the stablecoin’s market capitalization has increased by over 3.15% in the past month to $32.5 billion. Additionally, insights from Visa and Allium Labs show substantial trading activity surrounding the USDC stablecoin, currently at over $130 billion this month.

However, despite the recent uptick in USDC activity, Tether’s USDT maintains significant market dominance within the stablecoin sector.

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