The Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE), is looking into the potential integration of Circle’s stablecoins—USD Coin (USDC) and US Yield Coin (USYC)—within its financial ecosystem.
In an announcement made on March 27, this initiative aims to explore how these stablecoins might be incorporated into ICE’s exchanges, clearing processes, and market data services.
Recently, USDC, Circle’s primary stablecoin, surpassed a $60 billion market capitalization, making it the second-largest stablecoin in the world after Tether’s USDT.
This asset is supported by reserves that are managed by the Circle Reserve Fund, a government money market fund that is registered with the US Securities and Exchange Commission.
Since its debut in 2018, USDC has expanded to accommodate hundreds of millions of wallets and serves various applications—from facilitating cryptocurrency trading to enabling smooth international payments and maintaining dollar value in a digital format.
Additionally, ICE is evaluating Circle’s USYC, a newer tokenized asset that offers a yield of 3.8%. USYC is supported by short-duration US Treasury securities and repo-related instruments. This token originated from Hashnote, a crypto platform acquired by Circle earlier this year.
Lynn Martin, president of the NYSE, conveyed enthusiasm regarding the increasing significance of regulated digital currencies in traditional finance. She pointed out that assets like USDC and USYC could present efficient and reliable alternatives to conventional fiat currencies in institutional marketplaces.
Growing Institutional Interest in Stablecoins
The actions by ICE highlight the rising interest from established financial institutions in stablecoins, particularly as the regulatory framework continues to develop.
On March 26, US legislators presented a groundbreaking stablecoin bill aimed at establishing formal standards for digital dollar issuance.
The proposed legislation mandates that stablecoin issuers must be sanctioned as banks, licensed nonbanks, or entities regulated at the state level.
These tokens are required to be fully backed by cash or low-risk government assets, with monthly reporting and audits. Furthermore, the regulation imposes a two-year ban on algorithmic stablecoins and restricts the use of foreign-issued tokens unless they comply with US regulatory requirements.
This level of regulatory clarity seems to be drawing the attention of traditional financial entities who are starting to investigate this sector.
Tether CEO Paolo Ardoino emphasized this point in a recent post, stating:
“A new era begins: the stablecoin multiverse. Hundreds of companies and governments are launching (or will soon) their stablecoins.”
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