Cryptocurrency payment service provider, Circle, has shared their reasons for postponing their long-awaited Application Programming Interface (API). Last Friday, the stablecoin issuer announced it had suspended the launch of API to the disappointment of many.
In the aftermath of the postponement, Circle revealed that it needed more regulatory insight and blockchain ID protocols before proceeding with the release. Summarily, they said the timing of the rollout depended on the developments.
What is Circle’s API?
API is a product designed to help businesses access Compound Finance. It is an interest-based lending protocol that runs on the Ethereum blockchain. It allows enterprises to lend, borrow, and earn interests on the investment of their digital assets.
The newly-developed API will enable businesses to gain entry into the lending market via Compound. Enterprises will have to subscribe to Circle Accounts to manage digital assets. In addition, the API will conveniently automate Circle’s USDC inflow into the DeFi space.
According to Circle, this new product release will be prolonged until certain things are sorted out. Meanwhile, the crypto firm has channeled all its resources into launching Yield and boosting the supply of USDC.
The firm further said that it’s looking at unlocking new ways to do business with an array of suites at its disposal. Circle will boost its product offerings, like Circle Account, to facilitate ways of performing business.
Boosting Business Entry Into the DeFi Financial Market
Enhancing how enterprises operate in the DeFi space and granting unlimited access to various financial products have been the goals of Circle. It first started with the idea of establishing a BTC payment platform in 2013. However, it discarded the plan and opted for a social payment app.
Circle would later go-ahead to launch USDC stablecoin. Aside from becoming one of the largest stablecoin issuers alongside Tether, Circle added a wide range of products to support USDC. Examples of products include Circle Accounts, ramps, and the Yield service.
Last June, Circle revealed a merger with Concord’s SPAC to become a public firm. It was around this same time that the firm disclosed the launch of API. During the announcement, CEO Jeremy Allaire said that API would provide a smooth and safe infrastructure for enterprises to gain entry into the lending market.
Last month, Circle launched a new service that would allow business account holders to perform different cryptocurrency transactions from depositing to withdrawing and holding USDC on multiple blockchains. In addition to that, the feature would enable eligible customers to access the Yield lending program that offers juicy annual returns.
As of this writing, USDC’s supply stands at $52B, representing 29% of the stablecoin market, with USDT the only coin ahead of it.
