In a recent interview with FOX Business, Paul Talbot, President and Chief Justice of Circle, stated that the current focus of management remains on building financial infrastructure rather than responding to short-term price fluctuations. This statement comes at a time when the market is worried about increased competition for stable currencies.
USDC has 34 links of support.
In his interview, Talbot defended the competitive position of the USDC, stating that the current circulation of USDC was approximately $73 billion and that original support had been achieved on 34 block chains, a network effect that could hardly be replicated quickly. Circle locates USDC as the regulated United States dollar for transactions, payments and settlements.
He also stated that USDC was currently the largest regulated and stable currency and maintained a lead on actual transactions. Both distribution networks and use scenes are seen as the main advantages of Circle in the face of new entrants.
Open USD master share of proceeds
Open Standard, a stable currency for the recent launch of the plan, states that over 140 businesses have been involved, including Visa, MasterCard, Stripe, Beled, Melon Bank, New York and Coinbase. The project indicated that partners could complete the casting and foreclosure at no charge and share the benefits of the reserve after deduction of management costs.
This pattern has raised Wall Street's concerns about Circle's profit space. Mizuho had previously reduced the target price of Circle to $50 on the grounds that the revenue-sharing structure of Open USD could reduce the profit margin and increase distribution costs.
Circle continues to advance the compliance layout.
In addition to the new competitor, Circe is under pressure to distribute the income from the reserve. Morgan Chase had previously reduced its profit expectations for Circle and Coinbase because of the new revenue-sharing arrangements between the two companies around the Hyperliquid USDC balance. According to the Bank, even if the use of USDC increases, it is likely that the reserves retained by the enterprise may decline.
Circle continues to advance the compliance infrastructure despite the fall in stock prices. On 10 July, the company obtained final approval from the United States Monetary Supervisory Authority (OCC) for the establishment of the Circle National Trust. The trust bank will initially provide a digital asset hosting service and plans to take over future USDC reserve management operations.
Additional information:It was reported that the market was assessing this decline in relation to stable currency distribution and reserve revenue competition, which was close to $260 after Circe was listed and then fell back to more than 60 dollars.