Circle's Strategic Transformation Focuses on Stablecoin Business

Recently, a cryptocurrency company announced the sale of its over-the-counter trading business and stated that it will focus on stablecoin operations in 2020. This is yet another business adjustment for the company after halting its social payment application, suspending research projects, and spinning off its exchange.

In addition to the business segment, the company's senior management has also undergone personnel changes. One co-founder will step down from the co-CEO position and will participate in the board as an independent director. Additionally, the Chief Financial Officer and the Chief Legal Advisor will also be leaving.

The company stated that these adjustments are aimed at focusing on the development of the stablecoin business. In 2020, the company will simplify its business structure to concentrate on the stablecoin market, building a service system around the USDC, which is pegged to the US dollar. They plan to support global payments, custody, and stablecoin wallet APIs, providing infrastructure services for enterprises and developers.

Since its establishment in 2013, the company has primarily provided Bitcoin storage and fiat exchange services, growing rapidly and attracting investment from several well-known institutions. According to statistics, the company has raised a total of $246 million to date. In its early days, the company also transformed Bitcoin applications into a social product similar to WeChat Pay and ventured into the European and Chinese markets.

Starting in 2016, the company's strategic focus shifted to the cryptocurrency market, launching several new products. In 2018, it acquired a well-known exchange and, in collaboration with other companies, launched the stablecoin USDC. However, entering 2019, the company faced challenges in its development, leading to layoffs and divestitures.

In the face of a complex situation, the company has chosen to retain its stablecoin business and divest other segments. The company believes this will simplify its business structure and help focus on the stablecoin market.

Data shows that USDC currently ranks second in market capitalization, but there is still a significant gap compared to the market leader. However, the company has advantages in regulatory compliance, which may become an important support for USDC's future development. In addition, USDC also has good applications in the decentralized finance sector.

Overall, whether the company's strategic adjustment this time will succeed, and whether USDC can achieve greater breakthroughs in the stablecoin market, still requires time to test. However, focusing on stablecoin as a core business is undoubtedly an important choice for the company under the current circumstances.