The parent company of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE), has officially partnered with Circle to begin integrating the USDC stablecoin and tokenized money market funds across its financial platforms. This landmark collaboration marks a significant step toward bridging traditional finance with the rapidly evolving digital asset ecosystem.
Announced jointly on Thursday, the partnership is backed by a signed memorandum of understanding (MoU) to explore the use of USDC across ICE’s sales platforms, derivatives exchanges, data services, and broader market infrastructure. The move unites one of Wall Street’s most established institutions with one of the leading issuers in the cryptocurrency space.
Lynn Martin, President of the NYSE, emphasized that the goal is to treat Circle’s stablecoin and tokenized assets as foundational tools for building next-generation capital market products.
“We believe that as digital currencies gain greater trust among market participants, Circle’s regulated stablecoins and tokenized digital assets can play an increasingly important role in capital markets,” said Martin.
With USDC now boasting a market capitalization exceeding $60 billion, this initiative aims to embed the stablecoin more deeply into regulated financial systems—moving beyond speculative trading into real-world financial applications.
Expanding USDC Across Global Financial Infrastructure
Circle, headquartered in New York, issues USDC—the second-largest stablecoin by market cap after Tether’s USDT, which maintains a dominant $144 billion valuation and 63% market share. However, USDC is growing at a faster pace.
In just the past three months, Circle minted $16.5 billion in new USDC tokens, compared to only $4.7 billion in new USDT. As of March 26, 2025, the circulating supply of USDC reached an all-time high, capturing 25.4% of the stablecoin market—up from 20.7% just months earlier.
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Jeremy Allaire, Circle’s co-founder and CEO, described the partnership with ICE as a pivotal development: “ICE’s reputation across global markets and its extensive network provide Circle with a unique pathway to integrate USDC into major new use cases. We’re excited about the opportunity to innovate together.”
The collaboration will explore integrating USDC not only in crypto trading but also in traditional financial instruments such as bonds and derivatives. A key area of focus is the incorporation of tokenized money market funds—financial products backed by short-term, low-risk investments like U.S. Treasuries.
Notably, most of USDC’s reserves are already held in the Circle Reserve Fund (USDXX), a Securities and Exchange Commission (SEC)-registered money market fund compliant with Rule 2a-7. This structure ensures that each USDC token remains fully redeemable 1:1 for U.S. dollars and is backed entirely by cash and cash-equivalent assets.
Beyond institutional finance, USDC is gaining traction in everyday payments. Circle reports that over 600 million end-user wallets worldwide now support USDC. Since its launch in 2018, it has evolved into a versatile tool for payments, trading, and value storage across decentralized and centralized platforms.
Regulatory Compliance Fuels USDC’s Rise
One of the primary drivers behind USDC’s accelerated adoption is its strong regulatory posture.
In Europe, the new MiCA (Markets in Crypto-Assets) regulatory framework went live on December 31, 2024. Circle became the first stablecoin issuer to achieve full compliance, establishing its European operations in France. In contrast, Tether has struggled to meet MiCA requirements due to its lack of an e-money license.
This regulatory gap led Coinbase Europe to delist USDT in December 2024, followed by Binance removing it from its European platform in early March 2025. Some exchanges even incentivized users to swap USDT for USDC through promotional rewards.
Japan has also opened its doors to regulated stablecoins. After two years of negotiations, Circle received approval to operate in the country through Circle Japan KK, a joint venture with SBI Holdings. USDC was listed on SBI VC Trade on March 26, 2025, with plans for listings on Binance Japan and BitBank expected shortly.
Solana and Ecosystem Growth Boost Adoption
The Solana blockchain has played a crucial role in expanding USDC’s utility. Total value locked (TVL) in stablecoins on Solana recently surpassed $10 billion, with USDC accounting for 80% of that volume. According to data from Artemis Analytics, USDC supply on Solana grew by $16.3 billion over three months—far outpacing USDT’s $4.4 billion increase during the same period.
More broadly, stablecoins experienced explosive growth in 2024. Transaction volumes surpassed the combined totals of Visa and Mastercard by nearly 8%. The total stablecoin supply surged by 59%, crossing the $200 billion threshold for the first time—now representing approximately 1% of all U.S. dollars in circulation, up from 0.63% at the start of 2024.
Evolving Regulation and New Market Entrants
In the United States, lawmakers continue advancing legislation to regulate stablecoins. The GENIUS Act is currently under congressional review and would impose stricter requirements on audits and reserve transparency—areas where Tether has faced scrutiny.
JPMorgan analysts suggested that Tether might need to sell part of its Bitcoin holdings to comply with potential new rules. While Tether maintains it will follow any regulatory framework, Reuters reported that the company is now engaging with one of the Big Four accounting firms—PwC, EY, Deloitte, or KPMG—for a comprehensive independent audit.
Regulatory momentum has been bolstered by political support. Former President Donald Trump has voiced backing for two stablecoin bills moving through Congress. His newly formed advocacy group, World Liberty Financial, announced plans to launch a new dollar-pegged stablecoin called USD1, backed by U.S. Treasury holdings and cash deposits with a strict 1:1 redemption model.
New entrants continue to enter the space: PayPal launched PYUSD, and Ripple introduced RLUSD. Yet both remain behind USDC and USDT in market penetration.
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Binance founder Changpeng Zhao commented on the growing number of stablecoins, noting that increased competition enhances liquidity—benefiting traders and long-term crypto adoption alike. Despite rising rivals, Circle’s USDC continues to gain ground due to its full reserve backing and expanding global footprint.
Frequently Asked Questions (FAQ)
Q: What is USDC?
A: USDC (USD Coin) is a regulated, dollar-pegged stablecoin issued by Circle. Each token is backed 1:1 by U.S. dollars and equivalent cash assets, making it a reliable digital dollar alternative.
Q: Why is ICE partnering with Circle?
A: ICE aims to modernize capital markets by integrating blockchain-based assets like USDC and tokenized money market funds into its trading, data, and derivatives infrastructure.
Q: How does USDC differ from other stablecoins like USDT?
A: USDC stands out due to its strong regulatory compliance, transparent monthly attestations, SEC-registered reserve fund (USDXX), and faster global adoption under frameworks like MiCA.
Q: Is USDC safe to use?
A: Yes. USDC is fully backed by cash and short-term U.S. Treasury securities, audited monthly, and operates under strict financial regulations—making it one of the most trusted stablecoins.
Q: Where can I use USDC?
A: USDC is supported across over 600 million wallets globally and used for payments, DeFi lending, trading, remittances, and institutional settlements on multiple blockchains including Ethereum and Solana.
Q: Could new U.S. laws affect stablecoins?
A: Yes. Proposed legislation like the GENIUS Act could require stricter reserve audits and reporting standards, potentially impacting less-transparent issuers while benefiting compliant ones like Circle.
The integration of USDC into ICE’s ecosystem signals a transformative shift—where digital dollars are no longer confined to crypto exchanges but are becoming core components of mainstream finance. As regulation clarifies and institutional adoption deepens, USDC is positioned at the forefront of this financial evolution.
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