Circle Introduces High Yield Interest Rate Accounts on the Fastest Growing Stablecoin
Over the past eight months, the market cap of USDC has surged a whopping 560%.
Before the violent sell-off at the beginning of March, this stablecoin was a mere $445 million, which is ready to hit $3 billion, as per CoinGecko.
USDC’s growth even beats the largest stablecoin Tether’s (USDT), which grew 288% during the same period. However, its total market cap is inches away from hitting $17 billion.
Also, USDC had more than $11 billion of transfer value (adjusted) earlier last week, completely annihilating the previous all-time high of $2.11 billion. However, this record was because of the exploit in the DeFi protocol Harvest Finance, which involved a series of USDC flash loans.
And Circle, which created USDC in collaboration with crypto exchange Coinbase, wants to capitalize on this growth by announcing new high-yield accounts. The tweet from Circle reads,
“Circle is planning to introduce short and medium-term high yield interest rate business accounts built entirely on USDC. Starting at 8% APY, make sure to secure a spot on the waitlist today.”
As per the website, the USDC account starts at 8.5% APY for the open term, while for the fixed term, it starts with 9.50% and can go high as 10.75% for 12-months. The interest will accrue daily and be paid out weekly. Circle states,
“Yield is generated by lending your digital dollars to a network of institutional counterparties that are willing to pay an interest rate for access to additional capital.”
The yield generation offering has been initiated in collaboration with the lending firm Genesis.
Besides high yield savings accounts, it also provides its services to corporate treasuries. Business accounts and APIs were first started in March, allowing companies to “easily upload their dollars to the internet, convert them into digital currency dollars and start storing and using stablecoins for everyday payments,” said Circle CEO Jeremy Allaire at the time.
Back in summer, Circle first started offering lending protocols and rewards for staking USDC. Last month, Circle further shared that USDC would be expanding to Solana and Stellar blockchain, adding to Ethereum and Algorand.