Markets
Circle of Crypto Stablecoin Issuers to Move to US Amid Market Recovery
Financial Internet Circlethe company behind the second largest stablecoin in the world (CRYPTO: USDC), is about to move its headquarters from Ireland to the United States.
What happened: While the specific reason for the change remains undisclosed, the company has confirmed the submission of legal documentation to facilitate the change, Bloomberg reported.
This news comes as the broader cryptocurrency market experiences a resurgence, with USDC circulation recovering from a low of $24 billion earlier this year to its current value of $33 billion.
This recovery reflects the positive trend in the crypto space overall.
Changing its legal base to the US could expose Circle to higher taxes compared to Ireland’s historically low corporate tax rates, which have attracted large corporations such as Litter It is Pfizer.
However, recent Organization for Economic Co-operation and Development (OECD) reforms, which introduce a 15% minimum tax on the profits of large multinationals, are diminishing Ireland’s tax advantages.
Circle’s core business revolves around USDC, a stablecoin with a market capitalization of $33 billion. USDC circulation peaked at approximately $56 billion in June 2022, but faced a significant decline last year due to banking issues in the US, including the collapse of Silicon Valley Bank, where some USDC reserves were held.
Read too: Spot Bitcoin ETFs See $100M Inflows on Wednesday Amid Institutional Adoption
Despite these challenges, USDC circulation recovered to $24 billion this year, in line with a general recovery in cryptocurrency markets.
Stablecoins, which are typically pegged 1-1 to fiat currencies and backed by cash reserves and bonds, have seen greater profitability due to the post-pandemic rise in interest rates.
For example, Tether Holdings Ltd., the operator of the largest stablecoin (CRYPTO: USDT), reported a record first-quarter profit of $4.5 billion.
Circle has substantial support from major Wall Street firms, such as Goldman Sachs, General Catalyst Partners, Black stone, Loyalty Management and Research It is Marshall Wacealong with cryptocurrency-focused companies like Coinbase Global Inc.
What is the next: The strategic relocation of Circle’s legal basis and its broader implications for the cryptocurrency industry will be a key topic of discussion at the Benzinga meeting Future of digital assets event on November 19th.
Industry leaders and experts will delve into the evolving regulatory landscape and its impact on digital finance and stablecoin issuers like Circle.
Read next: Inflation Data Means ‘If You’re Bullish, Buy Bitcoin, Bearish, Short Ethereum’: 10x Research
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