- Circle’s strategic policy chief, Yam Ki Chan, emphasizes the importance of interoperability between different blockchains in the competitive stablecoin market.
- Chan highlights the resilience of USDC
’s backing in the face of banking crises and expresses optimism about entering the Japanese stablecoin market.
- Chan believes that tokenization of real-world assets presents significant opportunities for investors, and that USDC is well-positioned to support this process.
|Before you reading,
Don't miss coins like PEPE again! Click here to find new PEPEs!
In a recent interview, Yam Ki Chan, the head of strategy and policy at Circle, discussed the company’s focus on enhancing interoperability between different blockchains in the competitive stablecoin market, the resilience of USDC’s backing, and the potential of the Japanese stablecoin market.
Chan highlighted the importance of interoperability between different blockchains in the fiercely competitive stablecoin market. He mentioned Circle’s development of a permissionless cross-chain transfer protocol (CCTP), designed to facilitate the fast and secure transfer of USDC, Circle’s dollar-pegged stablecoin, across multiple chains like Ethereum and Avalanche. The protocol works by burning USDC on the sending chain and minting an equivalent amount on the receiving chain, enabling USDC transfers between different blockchain networks. Chan stated that Circle would continue to evolve the protocol by adding more supporting chains and enhancing its features and accessibility.
Resilience in the Face of Banking Crises and the Japanese Market
|Did you missed the PEPE? No worries, click here to 100x potential memes!
Chan also addressed the impact of the banking crisis in the US earlier this year on USDC. He emphasized that the majority of the reserves backing USDC are stored in a fund comprising short-term US bonds, US bond repurchase agreements, and cash, managed by BlackRock and held by the Bank of New York Mellon. This, he said, ensures the robustness of USDC’s backing. On the topic of entering the Japanese stablecoin market, Chan expressed optimism, citing the progress of the Japanese market and the support of the Japanese government for the Web3 ecosystem. He mentioned that Circle is continuously observing markets with high potential like Japan, conducting due diligence for regulatory compliance, and engaging in discussions with relevant regulatory bodies.
Tokenization of Real-World Assets and the Role of USDC
Chan expressed his belief that the tokenization of real-world assets, which allows for 24/7/365 investment access, presents significant opportunities for investors. He argued that USDC, having already gained trust as a digital dollar on the internet, is in a favorable position to support asset tokenization. Stablecoins like USDC and the underlying blockchain technology, he said, function as a new integrated infrastructure for internet payments, commercial transactions, and capital markets, offering unprecedented levels of utility. As people’s awareness of the innovative cost reductions and speed of internet payments increases, striking a balance between innovation and regulation will contribute to building trust in and promoting widespread adoption of this new layer, Chan concluded.
|You are looking to New 1000x Potential Gems: We recommended to Click Here to Buy Safely!
Circle’s strategic focus on enhancing interoperability, ensuring the robustness of USDC’s backing, and exploring new markets like Japan, coupled with its belief in the potential of asset tokenization, underscores its commitment to driving innovation in the stablecoin market. As the digital economy continues to evolve, Circle’s efforts could play a crucial role in shaping the future of stablecoins and blockchain technology.