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Circle needs to assist corporations entry DeFi lending markets with new API

Cryptocurrency firm Circle has announced that it plans to launch a brand new API for corporations utilizing Circle accounts to handle crypto property — and specifically USDC stablecoins. The brand new API will let corporations entry decentralized finance (DeFi) protocols beginning with Compound lending swimming pools.

Circle is best referred to as one of many founding members of the Centre consortium with Coinbase. Together with different crypto partners, they’ve issued USD Coin (USDC), a well-liked stablecoin.

Because the identify suggests, stablecoins are cryptocurrencies with a hard and fast worth. One USDC is all the time value one USD. Auditing corporations often examine that issuers all the time maintain as many USD in financial institution accounts as USDC in circulation.

The thought behind USDC is which you could manipulate cash extra simply. In line with USDC backers, transferring cash from one individual to a different ought to be as simple as sending bitcoin from one pockets to a different. Circle has its personal answer with Circle accounts. Account holders can programmatically ship, obtain and maintain USDC utilizing commonplace API calls.

Specifically, Circle has constructed ramps to bridge the hole between fiat currencies and cryptocurrencies. With Payments, you may settle for card funds, financial institution transfers and USDC transactions. All the things arrives in your Circle account as USDC. Equally with Payouts, you may ship financial institution transfers out of your Circle account.

Now, Circle additionally needs that will help you entry extra options along with your USDC at the moment in your Circle account. With the upcoming DeFi API, you’ll have the ability to entry DeFi protocols with out having to manually ship USDC tokens to a different pockets. Circle will begin with the Compound protocol.

Compound manages crypto-based lending markets. Some customers present crypto property and contribute to liquidity swimming pools. Others borrow crypto property — they first want to offer one other kind of crypto as collateral.

Customers who lend cash on Compound are rewarded with rates of interest. As an example, whenever you provide USDC utilizing the Compound protocol, you get 1.74% in annual proportion yield (APY). As USDC is a well-liked collateral for the Compound protocol, it is sensible that Circle is embracing the protocol with its enterprise accounts. It’s an fascinating addition to Circle’s treasury infrastructure.