InterContinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), is investigating financial infrastructure through the integration of Circle's Stablecoin products (USD COIN (USDC) and US Heald Coin (USYC).
According to a March 27 announcement, the initiative will explore how these steel coins can be integrated between ICE exchanges, clearing operations, and market data platforms.
Circle's flagship Stablecoin, USDC, recently surpassed the $600 billion mark in market capitalization, becoming the second largest Stablecoin in the world after Tether's USDT.
The assets are supported by reserves managed through Circle Reserve Fund, a government money market fund registered with the US Securities and Exchange Commission.
Since its launch in 2018, USDC has grown to support hundreds of millions of wallets, offering a wide range of use cases from promoting crypto transactions to enabling seamless global payments and maintaining dollar value in digital form.
ICE is also exploring USYC on Circle. This is a new tokenized asset that offers a yield of 3.8%. USYC is supported by short-term US Treasury securities and repo-related equipment. that It comes from Hasnote, a cryptographic platform circle obtained earlier this year.
NYSE President Lynn Martin has expressed optimism about the growing role of regulated digital currency in traditional finance. She said assets such as USDC and USYC can provide efficient and reliable alternatives to traditional FIATs in the institutional market.
Institutional interest in Stablecoins is growing
The ICE movement shows a growing interest from Sadaya legacy financial institutions, particularly when the regulatory landscape began to form.
On March 26, US lawmakers introduced the groundbreaking Stablecoin bill to formalize the digital dollar issuance standard.
The proposed law requires that Stablecoin issuers be approved as banks, authorized non-banks, or nationally regulated entities.
Monthly reporting and auditing means that these tokens must support cash or low-risk government assets one-to-one. The regulations also ban stubcoins in the algorithm for two years and restrict them using foreign-issued tokens unless they meet US regulatory standards.
This level of clarity of regulations appears to attract traditional financial institutions who have begun exploring the sector.
Tether CEO Paolo Aldoino highlighted this in a recent X post, saying:
“A new era is beginning. The multiverse of stubcoin. Hundreds of businesses and governments will launch their stablecoin (or soon).”
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