November 2019 Summaries

In December 2019, Poloniex waived all fees on Bitcoin (BTC) and USD Coin (USDC) trades, offering a significant opportunity for users to save money on transactions. This initiative followed a successful previous month where $500,000 was saved by waiving fees on USDC trades. The USDC stablecoin, launched in September, had rapidly gained adoption across more than 50 exchanges and platforms, with trading volumes exceeding 130 million. Circle, the company behind this initiative, aims to revolutionize financial transactions by making money movement more accessible and efficient worldwide. Users could convert USD to USDC through Circle's free service or via Coinbase, enabling them to trade BTC without incurring fees throughout December. Feedback was encouraged through Twitter or the Support Center, highlighting Circle's commitment to improving customer experiences and expanding economic opportunities.

Circle Internet Financial has released its latest attestation report, verified by the independent accounting firm Grant Thornton LLP, regarding the US dollar reserves backing USD Coin (USDC). As of October 31, 2019, the report confirms that there are 464,507,005 USDC tokens issued and outstanding, with $464,628,070 in US dollars held in custody accounts, ensuring that the USDC tokens do not exceed the dollar reserves. This attestation is part of Circle's commitment to transparency, with Grant Thornton providing monthly reports on the USDC reserves. Circle aims to revolutionize the movement of money by making it more accessible and efficient, thereby enhancing global economic opportunity and prosperity.

Stablecoins like USD Coin (USDC) are crucial for the efficiency of crypto over-the-counter (OTC) trading desks, as they allow traders to capitalize on market movements more effectively. USDC serves three main purposes for OTC desks: as trading capital, a quote currency, and a counterparty settlement instrument. Before stablecoins emerged, traders relied on Bitcoin as a quote currency, but its volatility posed challenges, prompting some to resort to slow fiat-to-crypto transactions via bank exchanges. With the advent of stablecoins, traders can now swiftly move between crypto and tokenized fiat currency, offering OTC desks the flexibility and effectiveness of cash with the advantages of digital transactions. Circle, the company behind USDC, aims to transform financial transactions by enhancing accessibility, inclusivity, and efficiency, thus fostering global economic opportunity and prosperity.

More than $50 million in USD Coin (USDC) has been borrowed this year across major decentralized finance (DeFi) platforms like Compound, Dharma, and dYdX, emphasizing the growing influence of DeFi and stablecoins. This achievement highlights the popularity of USDC, a fiat-backed stablecoin, with about 1 in 10 loans on these platforms denominated in USDC, and over $146 million supplied as collateral. Investors are drawn to USDC for its potential high interest rates, while borrowers use it for its liquidity and dollar equivalence. The CENTRE Consortium, co-founded by Circle and Coinbase, oversees USDC and aims to create global standards for fiat stablecoins. The growth of USDC is expected to continue, bolstered by initiatives like the USDC Bootstrap Fund by Coinbase, which supports DeFi developers.

Trading for US Poloniex customers ceased on November 1, 2019, following Poloniex's separation from Circle to focus on the international market, leading to the exclusion of U.S. customers. These customers are urged to withdraw their assets by December 15, 2019, using the newly established Poloniex US Withdrawal site, as they can no longer use Poloniex mobile applications. Despite this change, Circle's other services such as Circle Trade, Circle Invest, and USDC remain unaffected. U.S. customers can withdraw their assets to another exchange or wallet and are encouraged to use resources like CoinMarketCap or CoinGecko to find compatible platforms. Support is available for U.S. customers on the designated site, while non-U.S. customers can continue using existing support channels. Circle continues to focus on enhancing global financial inclusivity and efficiency.