- ICE is assessing USDC and USYC stablecoins for use in exchanges, clearing, and financial systems.
- US lawmakers propose stablecoin regulations requiring issuers to be licensed banks or financial entities.
- USDC’s market cap surpasses $60 billion, marking a 100% rise from last year’s valuation.
Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), is exploring the integration of Circle’s stablecoin products, USD Coin (USDC) and US Yield Coin (USYC), into its financial infrastructure.
A March 27 announcement stated that ICE is assessing how these stablecoins can be used across its exchanges, clearing operations, and market data services. The initiative aims to determine whether these digital assets can enhance the efficiency of financial transactions within traditional markets.
USDC is backed by reserves held in the Circle Reserve Fund, a US Securities and Exchange Commission (SEC)-registered money market fund. The stablecoin has been widely adopted for various financial applications, including crypto trading, payments, and preserving the value of digital dollars.
USYC Offers New Yield-based Opportunities
Alongside USDC, ICE is also considering the adoption of USYC, a tokenized asset that offers a 3.8% yield. The asset is backed by short-term US Treasury securities and repurchase agreements. It was originally developed by Hashnote, a blockchain platform acquired by Circle earlier this year.
NYSE President Lynn Martin stated that regulated digital currencies could provide a reliable alternative to traditional fiat money in institutional markets. She noted that assets like USDC and USYC have the potential to improve the efficiency of financial systems.
Growing Institutional Interest in Stablecoins
ICE’s decision reflects the increasing interest among financial institutions in regulated digital currencies. As stablecoins gain traction, more traditional firms are exploring their role in financial transactions and settlement systems.
On March 26, US lawmakers introduced a stablecoin bill that aims to set regulatory standards for digital dollar issuers. The bill requires stablecoin providers to operate as licensed banks, nonbank financial entities, or state-regulated institutions. Issuers must also ensure that stablecoins are backed one-to-one by cash or low-risk government assets.
The proposed law bans algorithmic stablecoins for two years and restricts foreign-issued stablecoins unless they comply with US regulations. These regulatory measures appear to be attracting more institutions to the sector.
USDC Reaches New Market Capitalization Milestone
As recently reported, USDC has reached a record market capitalization of over $60 billion. This marks a 100% increase from its $30 billion market capitalization in March last year. Data from CoinMarketCap shows that the total stablecoin market capitalization has also exceeded $230 billion. While USDC remains the second-largest stablecoin, Tether (USDT) continues to lead the market with a $144 billion valuation.
Tether CEO Paolo Ardoino noted that the stablecoin industry is expanding rapidly, stating,
“A new era begins: the stablecoin multiverse. Hundreds of companies and governments are launching (or will soon) their stablecoins.”
