The InterContinental Exchange (ICE), the owner of the New York Stock Exchange (NYSE) says it plans to explore using Circle’s USDC stablecoin and the recently acquired USYC money market fund, to “develop new products and solutions”.
Specifically, it aims to use them in derivatives exchanges, clearinghouses, data services, including “building new markets” based on Circle’s products.
While Circle has long wanted its stablecoin to be used in capital markets, and discussed it when BlackRock invested a few years ago, to date the deployment has been limited in traditional finance. The Trump administration’s embrace of crypto and blockchain has changed that.
“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,” said NYSE President Lynn Martin. “We are excited to explore the potential use cases for USDC and USYC across ICE’s markets.”
It follows several other recent announcements by traditional financial institutions relating to tokenization and stablecoins. Fidelity is planning to issue a stablecoin, and the CME Group has started experimenting with tokenization. Derivatives regulator the CFTC announced pilots for tokenized collateral involving tokenized assets and stablecoins.
ICE first announced plans to engage in blockchain and crypto in 2018, launching Bakkt in 2019 with its first product as physically delivered Bitcoin futures. Since then the company has been through several twists and turns. This included a consumer focused rewards and crypto app that has been dropped, a New York chartered custodian that ICE very recently acquired (now we know why), and more recently the provision of white label crypto exchange services.
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