As Circle looks to dive deeper into making its stablecoin (USDC) a household name, it is continuing to spin-off acquired projects that aren't a core business. Next up on the chopping block is the crowdfunding platform SeedInvest that it bought back in October of 2018.
Circle has the intention to remain focused on the development of stablecoin products, announced Jeremy Allaire, Circle’s CEO and one of the firm’s co-founders. Included in this process, the company will roll out new Business Accounts and Circle APIs, that will allow developers to build on top of the USDC network.
Circle Has Many Revenue Streams
While Circle has many revenue streams, it’s still trying to grow its development and research wings, on which it has focused on ever since the summer of 2019, when it started to offer USDC products
Over the last year, Circle sold the crypto exchange Poloniex that it has bought in 2018, closed its payments app Circle Pay, also sold Circle Invest and Circle Trade to Voyager and respectively Kraken, not to mention is at the moment considering to sell SeedInvest too.
SeedInvest, No Longer at the Core of Circle’s Business
According to Allaire, SeedInvest is no longer at the core of the business conducted at Circle. The CEO’s said,
“We exited the exchange business … so the need for that set of licensing just doesn’t exist anymore. The second thing is this whole kind of tokenization, having regulated broker-dealers and tokenized securities, that’s been slow-rolled.”
Ever since January, the company has also reduced its number of employees from 300 to 125 as a result of its many departments being sold. Regarding this, Allaire had to say that:
“We had about 100 people who went with these different spinouts … [it was] a natural way for people to go with those businesses and product lines.”
What's Next for Circle?
Speaking to Coindesk, Allaire said his company is planning to announce additional stablecoin products.
“We’ve been executing like crazy on USDC,” he said. “We’ve tokenized over $1.6 billion in USDC, crossed the $500 million market cap recently.”
These products will firstly include new business accounts that Circle is planning to offer to startups the new products for free and then transition to a usage-based subscription afterward.