“CIRCLE costs in the course of the exchange are jeopardized by the company’s position as the issuer of the second in capitalization of steiblcoin. CEO Borderless Kevin Lehtinitti said this in an interview with The Block. The entrepreneur participated in the launch of “the first in the United States fully provided with reserves” coin Trueusd. He now led by the firm provides infrastructure for the integration of steiblcoins with financial institutions. In early April, Circle has submitted to the US Securities and Exchange Commission […]”, – WRITE: Businessua.com.ua
CIRCLE costs in the course of the exchange are jeopardized by the company’s position as the issuer of the second in capitalization of steiblcoin. About it in the interview The Block said CEO Borderless Kevin Lehtinitti.
The entrepreneur participated in the launch of “the first in the United States fully provided with reserves” coin Trueusd. He now led by the firm provides infrastructure for the integration of steiblcoins with financial institutions.
In early April, Circle applied to the US Securities and Exchanges for the initial share proposal (IPO). The step was the implementation of previously announced plans for obtaining the status of a public company.
According to Lehtinitti, the USDC Issuer’s profit in 2024 may reflect the increase in operating expenses for compliance with regulatory rules in order to obtain the regulator approval.
The main competitor – Tether, standing for USDT – applies a different approach. Comparing the number of staff, it becomes obvious that Circle spends a “bunch of money” on licensing, salaries of compliance workers, as well as lobbying, the expert said.
In 2024, the company paid the KOINBASE cryptocurrency, a former Centre consortium partner, $ 908 million for USDC support. The agreement is the cost of Circle for “distribution”.
“This is not even the first position, but the maintenance of the second. A good warning for those who want to run their own steiblcoin, ”Lehtinitti emphasized.
At the same time he does not see in Circle some “unique advantages” in terms of distribution of coin. At the same time, there are serious trumps in PayPal for Pyusd in the form of integration into the available payment giant products.
“World Liberty will have to prove it, but they probably have a completely unique privilege in promotion. I would have suggested that the post of president [США Дональда Трампа] Gives you some priority, ”Lehtinitti said.
In March, the Defi platform, which was consolidated by Trump’s family, announced the launch of USD1 dollar steiblcoin.
For Circle, Lechtinitti sees the only way to keep a position – to achieve a profitable regulatory policy that will displace competitors. It is really realized with lobbying, but such activity requires “absolutely crazy costs”.
We will remind, the profile committee of the House of Representatives of the US adopted the frame bill Stable Act on the regulation of steiblcoins. A similar path went to the Genius Act alternative document in the Senate.
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