Executing Cryptocurrency Transactions to the Value of $24 Billion by Circle Startup
The circle is the name of a startup which has been funded by Goldman Sachs. This startup has recently disclosed its achievements since 2018. This company announced that it has executed unbelievable cryptocurrency transactions in OTC (Over-The-Counter) worth $24 billion; hence, it surpasses other rivals such Coinbase exchange (a digital currency exchange in San Francisco, U.S) and Greyscale exchange (an investment company).
OTC transactions are those directly executed between two parties without any supervision from an exchange. In OTC market transaction, the price is not necessarily specified for the public, and due to having bilateral contracts, each party can worry about the risk of the other’s validity. These contracts are exactly similar to exchange transactions of goods, financial tools (such as stock) and their derived securities (which are active in the assets like interest rate, exchange rate, stock rate, and good).
Circle startup announced his achievements in 2018 in a post on June 3, 2019. According to this post, OTC of this company, Circle trade, has executed more than 10000 OTC transactions to the value of $24 billion. Regarding the development of Circle Trade, this memorandum says that:
“Circle Trade has changed into a commercial supplier center for the whole digital currency ecosystem, such as miners (specialists who address finding digital currency on Blockchain platform), exchanges, project developers and founders and also new venture investors, crypto capitals, high-risk capitals and global family offices across digital currency ecosystem.
The published figures by Circle show a process observed in the realm of OTC transactions. According to the studies carried out by Diar, the strong increase of Bitcoin (a type of digital currency on Blockchain platform) OTC transactions has been reported in December 2018. Big activists such as Coinbase have reported the increase in OTC transactions volume.
The volume of $24 billion international trade by Circle, in comparison to the sum of these numbers for Coinbase and Greyscale, shows more OTC transactions by this company. The data acquired by Diar imply that OTC transaction volume in Coinbase equals $12 billion and foreign transactions volume of Greyscale had been about $11 billion.
Regarding this issue, Su Zhu, FX Hedge Fund managing director, twitted on January 4, 2019, that:
“Circle OTC has processed 10000 OTC transactions, 600 different buyers and sellers and 36 various crypto capitals worth $24 billion.”
Granting several companies’ ownership to Circle
Buying Poloniex exchange company (digital currency exchange in the United States) by Circle had surely been a dramatic development for this company in 2018. Circle informed in February 2018 about the ownership of Poloniex cryptocurrency exchange, one of the biggest platforms of digital currency exchange.
Poloniex is one of the big cryptocurrency exchanges in the U.S. It is very popular among American people and handles the exchanges in the fastest and most secure way; however, due to a large number of steps in identity verification, it is not practical for all. This exchange does not give services to the Iranians because of existing sanctions.
According to a memorandum by Circle, this company has attempted so much to improve compliance standards. According to the published reports in May 2018, after offering new requirements of KYC customers’ identity verification, many users of this platform announced that this company has dismissed guarantees offered by the end of 2017.
The measures carried out by Circle were followed by achievements in the field of supporting and protecting customers. Circle remarked that the number of open tickets has decreased to 99.5% from the time of owning this exchange.
Moreover, this company was successful in gaining ownership of Seedlnvest company (a platform in the field of startups and investors) attempting to be turned into a legislated broker. In spite of rigorous views of regulations in cryptocurrencies, startups like Circle and Coinbase are trying for legal confirmation to offer their products and services in this regard. The circle is active in identity verification, on-chain transmissions, capital maintenance, capital exchange, direct fiat money (unbacked money, a type of money which is valueless in nature and finds value just according to legal and governmental orders) deposit or withdrawal, USDC stable cryptocurrency, and risk assessment.
Supplying stablecoin and Circle development
Stablecoin or stable cryptocurrency is a type of digital currency which has a constant nature. The market determines the price of most digital currencies and according to the supply and demand, but the Stablecoins are trying to achieve a fixed price.
Circle entered the cryptocurrency market via launching stable cryptocurrencies including USD coin or USDC. Therefore, the subject of a central consortium with the partnership of Coinbase was established.
Consortium refers to the unity of two or more companies to take part in a specific project which is carried out under regulations confirmed by project partners.
According to the reports, USDC cryptocurrency is the second stable one after Theter with the market value of $280 million supported by fiat currency. Different exchange platforms support this stable cryptocurrency.
The year 2019 is the sixth year of Circle operation, and it has said that it wanted to concentrate on capacity making independent from industries condition:
“we consider the future of the world economy open, shared, inclusive, distributed, and powerful, distributed and powerful.”