What is Circle’s Stablecoin?

Image:https://www.circle.com/

Circle is a well-known financial technology company in the United States, and its issued stablecoin USDC (USD Coin) is the second largest dollar stablecoin by market capitalization globally, second only to USDT. Circle’s stablecoin is pegged to the dollar at a 1:1 ratio and is backed by equivalent reserve assets held by regulated financial institutions, ensuring its credibility and convertibility.

As a core player in the stablecoin field, Circle is committed to promoting the global adoption of USDC and continuously expanding its supported public chain ecosystem, including Ethereum, Solana, Avalanche, and more. In June 2025, USDC successfully launched on the XRP Ledger (XRPL), marking a new milestone in its cross-chain expansion strategy.

Why choose XRP Ledger?

XRP Ledger is an open-source, low-cost, high-throughput Layer 1 blockchain protocol driven by Ripple, featuring strong cross-border payment capabilities and financial asset support. The launch of USDC this time is a native integration, meaning that USDC can be issued, transferred, and used on XRPL without the need for cross-chain bridging.

More importantly, the XRP Ledger has an Auto-Bridging mechanism that allows for instant transfers between different stablecoins using XRP, greatly enhancing liquidity. Through this mechanism, Circle’s Stablecoin will directly integrate into the decentralized trading system (DEX) on the XRPL, providing global users with a low-cost, high-efficiency dollar payment channel.

The significance of the stablecoin market

The current global stablecoin market capitalization has exceeded 237 billion dollars, while the circulation of USDC itself has also surpassed 61 billion dollars. As Circle’s Stablecoin achieves seamless interoperability across more mainstream blockchains, its position in decentralized finance (DeFi), cross-border payments, on-chain settlements, and other scenarios is increasingly rising.

The launch of USDC on XRPL is a milestone, as it not only expands the stablecoin ecosystem of the XRP Ledger but also strengthens the on-chain universality of USDC. This collaboration is seen as a reflection of the blockchain industry’s progress towards “multi-chain integration” and “financial compliance.”

Outlook on the Cooperation between Circle and Ripple

Despite recent rumors in the market that Ripple intends to acquire Circle, Ripple has officially denied this. However, the cooperation between the two companies in global payment infrastructure is becoming increasingly close.

Ripple plans to capture 14% of the global SWIFT network’s liquidity share by 2030, and to achieve this goal, it must rely on compliant USD stablecoins like Circle’s Stablecoin to expand the coverage of bridging assets. Circle also provides more payment and settlement options for its Mint and API users by connecting to the Ripple network, facilitating the rapid switching between fiat and on-chain assets for global institutions and developers.

The Regulatory Background and Global Impact of Stablecoins

In recent years, the United States and Europe have become increasingly proactive in their regulation of stablecoins. Stablecoins are viewed as an extension of financial instruments and the credibility of the US dollar. In the context of the current pressures on the US Treasury market and the challenges to the international status of the dollar, Circle’s Stablecoin is given more strategic significance.

Many economists believe that stablecoins like USDC, which are backed by reserves of US dollars, help maintain the dominance of the dollar in decentralized finance, providing global users with a safer means of value storage and settlement. Circle is also actively promoting compliance and audit transparency, striving to become the first fully regulated stablecoin issuer in the United States.

Future development trends

The combination of Circle’s Stablecoin and the XRP Ledger is a reflection of the current stablecoin market’s “multi-chain progress, cross-border friendliness, and compliance first”. As USDC gradually integrates more blockchains, API services, and institutional channels, its market share and usage depth are expected to further increase.

For ordinary users, this means:

• Using USDC is more convenient across more wallets and exchanges.
• Cross-chain transaction fees are lower;
• Higher speed and compliance for international remittances.

In the future, Circle plans to continue expanding its global financial network partnerships, including establishing connections with local banks and payment platforms in the Asian and European markets, allowing stablecoins to truly enter the lives of the public.