Finance data aggregator Plaid and stablecoin issuer Circle launched a partnership to make moving money out of banks and into USDC easier. Circle’s partnership with Plaid is similar to that with Visa in that they both enable better integration between Circle and networks that let users move between stablecoins and fiat more quickly.
On Wednesday, the total value of USDC in circulation reached $30 billion according to a tweet by Circle CEO Jeremy Allaire. USDC is the eighth biggest crypto coin by market cap at the moment.
Circle Chief Strategy Officer Dante Disparte said in a statement:
“By integrating with Plaid, Circle is demonstrating – yet again – how we’re able to work with technology and finance leaders in the payment industry and leverage the power of USDC to generate frictionless economic activity.”
Plaid is connected to banks across the globe. It’s also connected to several crypto companies, including Coinbase, the biggest crypto exchange in the US, and Uniswap-friendly DeFi wallet Dharma, a decentralized finance (DeFi) startup. Plaid has also confirmed integrations with another DeFi startup, Teller Finance, which aims to deliver unsecured lending on the Ethereum blockchain.
Many startups use the integration. One of them is Linus. Its cofounder Matthew Hamilton commented:
“The Circle and Plaid combination has completely streamlined our business’s fiat to crypto operations.”
Why is USDC a major breakthrough?
Like all digital content, digital dollars move at the speed of the internet, are more secure and cost-effective than existing systems of payment, and can be exchanged in the same way we share content. USDC is backed by fully reserved assets, issued by regulated financial institutions, and can be redeemed for US dollars 1:1. The stablecoin is governed by Centre, a consortium responsible for financial, policy, and technical standards for stablecoins.
Circle’s bank will get account details for people who want to buy USDC faster
Circle’s bank, New York-based Signature, will retrieve account details for consumers who place value on speed when purchasing crypto through apps connected to Plaid. Signature integrates Circle in its blockchain-based platform, which makes it possible to make payments in real time. This platform will enable future integrations of Circle products and services within Signature. The platform works every day of the week. Access is possible on the weekend as well. The associated networks aim to attract as many crypto industry players as possible.
