Thanks! As a public company, I’m comfortable with the transparency and risk profile of Circle. But I think your concern is more than fair.
Regardless of the issuer, stablecoins simply extend the dominance and network effects of the U.S. dollar. The more interesting debate is centralized state sponsored money vs permission-less, decentralized, open architecture money. Dollars vs BTC.
Good question. Two reasons. 1) First mover: USDT was launched in 2014 vs USDC was launched in 2018. 2) Tether is used more outside the U.S., and more advantageous for regulatory escape. Circle is Genius Act compliant and voluntarily regulated.
Very Interesting Read. I was and still am skeptical about the privat firms behind dollar backed coins. Thanks for posting this!
Thanks! As a public company, I’m comfortable with the transparency and risk profile of Circle. But I think your concern is more than fair.
Regardless of the issuer, stablecoins simply extend the dominance and network effects of the U.S. dollar. The more interesting debate is centralized state sponsored money vs permission-less, decentralized, open architecture money. Dollars vs BTC.
With that backdrop, why are more assets held in tether than circle?
Good question. Two reasons. 1) First mover: USDT was launched in 2014 vs USDC was launched in 2018. 2) Tether is used more outside the U.S., and more advantageous for regulatory escape. Circle is Genius Act compliant and voluntarily regulated.