NY Stock Exchange Parent ICE Exploring Use of Circle’s Stablecoin

Circle is teaming with Intercontinental Exchange (ICE) to explore the broader use of stablecoins.

The partnership, announced Thursday (March 27), will see ICE — operator of The New York Stock Exchange (NYSE) — explore the use of Circle’s USDC stablecoin to develop new products and solutions for its customers.

“ICE’s reputation and global network across markets offer a unique pathway for Circle to integrate USDC into major new use cases, and we are thrilled for the opportunity to innovate together,” Circle Co-founder and CEO Jeremy Allaire said in a news release.

According to the release, Circle and ICE plan to explore uses for Circle’s stablecoins and other offerings in ICE’s derivatives exchanges, clearinghouses, data services and other markets.

“We believe Circle’s stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the US Dollar,” Lynn Martin, NYSE president, said in the release.

The release notes that — per Circle — there was more than $60 billion in USDC circulating as of March 26. The stablecoins are backed “by highly liquid cash and cash-equivalent assets,” making USDC redeemable 1:1 for American dollars.

The joint effort comes at a time when, as covered here earlier this month, stablecoins have begun to separate themselves from cryptocurrency exchanges to establish themselves as part of the real-world financial architecture.

“The crypto market in general is down by around 18% over the past 30 days and remains buffeted by uncertainty,” that report said, “yet Stripe’s latest shareholder letter includes an entire section on stablecoins, and recent developments indicate a broader adoption of stablecoins in mainstream financial activities including B2B payments, capital markets, lending, cross-border payments and treasury management.”

Cross-border payments, as PYMNTS has noted on several occasions, are among the most promising use cases for stablecoins.

While traditional international transactions remain slow and expensive, stablecoins promise a faster and less expensive alternative. By using blockchain rails, stablecoins can bypass intermediaries, facilitating almost instantaneous settlements at potentially lower costs.

“Beyond payments, stablecoins are transforming corporate treasury operations,” PYMNTS wrote. “Managing liquidity across multiple jurisdictions involves navigating various currencies, banking systems and regulatory environments, and this can often lead to back-office inefficiencies and increased operational costs.”

Stablecoins can provide a unified solution by allowing companies to hold and transfer value seamlessly on a worldwide scale.​