Tag: Circle

  • Crypto Matures: Arc and Prosper Take Opposite Routes to Institutional Trust

    Crypto Matures: Arc and Prosper Take Opposite Routes to Institutional Trust

    Crypto has spent years chasing the same goal from two directions: more real economic activity, more serious capital, without becoming either fully permissioned finance or a pure speculative casino. This week produced two answers to that problem, launched a day apart, and neither one looks like the other.

    Circle’s Arc: Permissioned Trust via Institutional Validators

    Circle’s answer is Arc. The Layer 1 network went live with a founding validator cohort that reads like a partial list of global finance itself: BlackRock, the Depository Trust & Clearing Corporation, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo, Visa, Worldpay and Galaxy. The chain is explicitly permissioned. Circle presents that as a selling point, pairing it with a defined governance perimeter it says lets banks use a public chain for treasury, trading and confidential payments. USDC, with roughly $74 billion in circulation, is wired in as the network’s gas token. The company also completed the genesis mint of ARC this week, all 10 billion tokens created at once, while being careful to say the mint is not a commitment to a public launch. It’s a technical step toward a possible move to proof of stake, not a trading debut. Arc’s bet is that institutions will trust a public chain more readily if the validator set looks like the institutions themselves.

    Prosper’s Performance Markets: Permissionless Transparency

    Prosper’s answer is close to the opposite bet. Performance Markets, launched on Pharos the same week, keeps everything public and permissionless. Any curator with an onchain track record can deploy a vault. There’s no validator gate, no cohort of institutional backers, no allocation set aside for insiders on the token side. Instead of importing trust through recognizable names, Prosper tries to manufacture it through transparency: every vault’s NAV, fees, and buybacks are verifiable onchain, and a high-water mark — the standard hedge-fund mechanism that only credits gains above a fund’s previous peak — governs when a share of performance fees buys back and burns the vault’s token.

    What that token is, and isn’t, is the part worth sitting with. Laura Shi, Chief Business Officer at Pharos, where she leads business architecture, RealFi innovation and ecosystem expansion, frames it this way:

    “Think of p{VAULT} as a token built around a public track record, not a share in a fund. Anyone can see how the Curator and the strategy are performing onchain, and use that information to decide what the token is worth. Strong results may build confidence; weak results may reduce it. But there is no automatic one to one link to the Vault’s NAV. Buyback and burn affects supply, it does not promise price support.”

    That’s the core difference between the two experiments. Arc is trying to earn trust by putting familiar institutions in the room. Prosper is trying to earn it by putting the data in the open and letting the market decide what a track record is worth, without wrapping that decision in an ownership claim.

    Which Model Will Prevail?

    Neither model has proven itself yet. Arc’s real test is whether the institutions that signed on as validators actually route meaningful volume through the chain, rather than treating the launch as a pilot. Prosper’s real test is narrower and more mechanical: whether curators show up in numbers, and whether the first vaults clear their high-water marks publicly — the moment the buyback mechanism actually has fees to work with.

    Watching which of these gains traction first won’t settle which model is “right.” But it will say something concrete about what kind of trust crypto’s next phase actually runs on: borrowed from institutions, or built from data anyone can check.

  • Crypto Market Surge: Bitcoin ETFs See $999M Inflow, Bitmine Adds 27,562 ETH, Circle Launches BTC-Backed Loans

    Crypto Market Surge: Bitcoin ETFs See $999M Inflow, Bitmine Adds 27,562 ETH, Circle Launches BTC-Backed Loans

    The cryptocurrency market witnessed a flurry of major developments on September 22, 2026, with spot Bitcoin ETFs recording nearly $1 billion in daily inflows, Bitmine Immersion Technologies adding a significant amount of Ethereum, and Circle introducing Bitcoin-backed USDC loans for institutional clients. Additionally, Kazakhstan reported over $10 billion in regulated crypto trading turnover for 2025.

    Bitcoin ETFs Attract $998.95 Million in Inflows

    According to data from SoSoValue, U.S. spot Bitcoin ETFs saw a total net inflow of $998.95 million on the previous day. BlackRock’s ETF, IBIT, led the pack with a daily net inflow of $381.37 million, bringing its historical total to $64.51 billion. Ark Invest and 21Shares’ ETF, ARKB, followed with a $289.12 million daily inflow, accumulating $1.37 billion historically. The combined net asset value of all spot Bitcoin ETFs now stands at $110.14 billion, representing 6.3% of Bitcoin’s total market cap, with cumulative net inflows reaching $56.16 billion.

    Bitmine Acquires 27,562 ETH

    Bitmine Immersion Technologies, a NYSE-listed company, purchased 27,562 Ethereum (ETH) during the week ending September 20, increasing its total holdings to 5,983,940 ETH. Valued at approximately $16.1 billion based on a reference price of $2,688 per coin, the weekly acquisition is worth roughly $74 million to $75 million at current market prices. This represents 4.9% of Ethereum’s circulating supply of about 122.1 million tokens. Bitmine has set a public goal of accumulating 5% of all ETH.

    Circle Launches Bitcoin-Backed USDC Loans

    Stablecoin issuer Circle has introduced an institutional Bitcoin-backed USDC loan service through its Circle Mint platform. The tool, called Digital Asset-Backed Borrowing (DABB), allows institutional entities to secure immediate liquidity in digital dollars without selling their Bitcoin reserves. Clients deposit Bitcoin to mint Circle Wrapped Bitcoin (cirBTC), which is held under fiduciary standards with a 1:1 backing ratio. Users then interact from a non-custodial Smart Wallet with integrated decentralized finance (DeFi) markets, with Morpho protocol being the first to support cirBTC and allow fund withdrawals. The resulting USDC balance is credited directly to the user’s corporate account on Circle Mint.

    LayerZero Partners with Anchorage Digital for Stablecoin Issuance

    Anchorage Digital, the parent company of the first federally chartered crypto bank in the U.S., has selected LayerZero as its interoperability partner for stablecoin issuance. This partnership will provide cross-chain capabilities for assets issued under the Anchorage Digital Bank platform, ensuring a unified and secure infrastructure for financial institutions globally. By adopting LayerZero’s Omnichain Fungible Token (OFT) standard, institutional stablecoins like Tether’s USAT can optimize cross-border payments, treasury management, and decentralized lending across over 170 blockchain networks, including Ethereum, EVM-compatible chains, and Solana.

    Kazakhstan’s Regulated Crypto Market Surpasses $10 Billion

    Kazakhstan’s regulated cryptocurrency market has exceeded $10 billion in annual trading turnover, driven by the expansion of licensed digital asset services and a growing domestic Web3 developer ecosystem. Deputy Minister of Artificial Intelligence and Digital Development Gizzat Baitursynov reported that trading turnover reached $10.58 billion in 2025, up from $320 million in 2023, while the number of users grew from 53,000 to 215,000 over the same period. The figures were disclosed during a government meeting on September 15, highlighting the success of the country’s initial crypto market pilot with the Astana International Financial Centre.

  • Velocity Secures $10M Extension as Visa and Circle Join Its Stablecoin Infrastructure Push

    Velocity Secures $10M Extension as Visa and Circle Join Its Stablecoin Infrastructure Push

    Velocity, a London-based stablecoin payments startup, has added $10 million to its Series A round, bringing the total to $48 million. The extension was joined by Visa Ventures, Circle Ventures, and Ripple, alongside three other investors. The funding will support the company’s infrastructure for enterprise treasury, settlement, and liquidity operations using stablecoins.

    The latest raise comes just over two months after Velocity announced its initial $38 million Series A on July 14, led by Dragonfly and FirstMark, with participation from Ripple. The new extension adds Visa Ventures, Circle Ventures, Haun Ventures, Translink Capital, and Mirana Ventures to the cap table.

    Velocity builds systems that allow banks, acquirers, merchants, and payment providers to integrate stablecoin settlement, liquidity, and treasury operations without replacing existing payment infrastructure. The company aims to make money movement more continuous and reduce reliance on prefunding and settlement outside traditional banking hours.

    Visa has noted that stablecoins are playing an increasingly important role in moving value across its ecosystem. Rubail Birwadker of Visa stated that companies like Velocity can help expand stablecoin use for customers and partners. Velocity founder and CEO Eric Queathem emphasized that the new investors bring valuable insight as the company scales its stablecoin infrastructure.

    With the backing of Circle Ventures and Ripple, Velocity gains investors directly tied to regulated stablecoins, payments, and institutional finance. Translink Capital adds connections to corporate and institutional partners across Asia. The company plans to use the new capital to support issuers, acquirers, payment providers, financial institutions, and merchants worldwide, connecting stablecoins with existing banking, treasury, and settlement systems.

  • Circle Wins $49M Arbitration Case Against Tether-Linked Heka Funds

    Circle Wins $49M Arbitration Case Against Tether-Linked Heka Funds

    Circle has won an arbitration dispute against Heka Funds, defeating a $49 million damages claim linked to a 2023 platform suspension, according to a report. Circle suspected trading patterns that favored Tether’s USDT and removed the fund’s access. The outcome became public on July 14, 2026.

    None of the parties has issued an official statement. Therefore, the report remains the only public account of the dispute and ruling.

    Circle Defeats Claim After Platform Suspension

    Circle operates the USDC stablecoin and controls access to its platform services. In late 2023, the company suspended Heka Funds after reviewing its trading activity. According to the report, the fund’s trading patterns allegedly favored USDT in a targeted manner. Circle viewed the conduct as close to market manipulation.

    The company considered the activity a threat to USDC’s market integrity. It then withdrew the fund’s access to its platform and related services. Heka Funds challenged the suspension through arbitration in 2024. It demanded $49 million for profits it claimed to have lost after losing platform access.

    The fund relied on Circle’s issuance, redemption, and trading channels. Therefore, the suspension reduced the number of routes available for its arbitrage strategy.

    Heka Built its Business Around Stablecoin Arbitrage

    The arbitrator dismissed the damages claim and ruled in Circle’s favor. As a result, Circle did not have to pay the requested amount. The report did not disclose the ruling date or the arbitrator’s detailed reasoning. Arbitration proceedings usually keep financial disputes outside public courtrooms.

    A privately appointed arbitrator decides the case. Both parties must generally follow the ruling and have limited options to challenge it. Heka Funds operates through Heka Funds SICAV p.l.c. in Malta. Its Elysium Global Arbitrage Fund uses a strategy managed by London-based Abraxas Capital Management.

    The fund began operating in late 2018 and focused on stablecoin and Tether arbitrage. It targeted small price differences across exchanges and digital tokens. These strategies depend on large transaction volumes and fast settlement. Losing a major trading partner can reduce available opportunities and lower potential returns.

    Platform Access Shapes Stablecoin Competition

    A 2021 Protos investigation said the fund held up to €540 million, or about $570 million, across USDC and USDT. The investigation also reported cumulative gains above 100% since the fund’s launch. In 2021, the fund recorded about €49 million in annual profit. That amount resembles the later arbitration claim. However, the figures relate to separate matters from different years.

    Access decisions directly affect arbitrage funds since their strategies depend on issuer redemption channels and several trading routes. Circle and Tether lead the global stablecoin market, while USDT holds the larger market value. Circle has traded on the NYSE since June 2025.

    The company uses the ticker CRCL. Its public listing also places its operations under greater market and regulatory scrutiny. Meanwhile, the United States is developing federal stablecoin rules through the GENIUS Act. The proposed framework covers reserves, audits, disclosures, and issuer requirements. No official response has emerged from Circle, Tether, Heka Funds, or Abraxas Capital. The detailed basis for the arbitrator’s ruling therefore remains undisclosed.

    What’s Next?

    Circle defeated Heka Funds’ $49 million damages claim after suspending the fund over trading patterns that allegedly favored USDT. Although the arbitrator backed Circle, the reasoning remains undisclosed. Market participants should watch for official statements that may clarify the case and its impact on stablecoin platform access.

  • S&P 500 Heads for Weekly Gain as Meta Rallies on AI Cost Savings and Circle Soars on OCC Nod

    S&P 500 Heads for Weekly Gain as Meta Rallies on AI Cost Savings and Circle Soars on OCC Nod

    The U.S. stock market moved in a narrow range on Friday, with the S&P 500 holding near the flatline as Wall Street wrapped up a largely positive week. The benchmark index is on track for a weekly gain of nearly 1%, while the Nasdaq Composite is set to rise more than 1%. The Dow Jones Industrial Average lagged slightly, heading for a weekly loss of less than 1%.

    Investors weighed a sharp rally from the previous session, driven by cooling oil prices and a temporary easing of Middle East tensions. President Donald Trump said Iran had called to make a deal, and officials from Qatar and Pakistan are working to restart talks between Washington and Tehran. “The muted stock market reaction to the re-escalation of Iran tensions this week is prime evidence that the market is looking past geopolitical tensions,” said Clark Bellin, president and chief investment officer at Bellwether Wealth.

    Chip Stocks Weaken Ahead of SK Hynix NASDAQ Debut

    Chip stocks traded lower ahead of SK Hynix’s U.S. market debut on the Nasdaq. The South Korean memory-chip maker priced its American depositary receipts at $149 each, raising $26.5 billion. The listing underscores strong investor demand for a major supplier in the AI chip supply chain. Micron Technology fell around 3%, while Marvell Technology and Lam Research lost more than 1%. Intel dropped nearly 3%, and Broadcom also traded lower. The iShares Semiconductor ETF declined 1.2%, and the VanEck Semiconductor ETF lost 0.8%.

    Meta Rallies on AI Cost Report

    Meta Platforms stood out among large technology stocks, rising nearly 6% on Friday and extending its five-session advance to more than 14%. The move placed Meta on track for its strongest weekly gain since February 2024. Bank of America maintained its buy rating after reviewing details tied to Meta’s AI infrastructure plans. According to Reuters, Meta plans to begin production of an in-house AI chip in September as part of a broader plan to double computing capacity. “Meta may have engineered significant cost savings to get capacity cost per MW well below our and Street expectations,” Bank of America analyst Justin Post wrote.

    Circle Shares Jump After OCC Approval

    Circle Internet Group shares surged more than 12% after the stablecoin issuer received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank. The approval moves Circle further into the regulated U.S. banking system, supporting its USDC infrastructure and adding federally regulated custody. Reserve management is planned as a future capability.

    Economy and Stocks Move at Different Speeds

    The stock market’s performance continues to diverge from the broader economy. The S&P 500 rose nearly 10% in the first half of 2026, while the Dow gained almost 9% over the same period. Meanwhile, economists say U.S. growth has slowed. “I think there’s this widespread perception the two should be in sync,” said Joe Seydl, senior markets economist at J.P. Morgan Private Bank. “But, from a purely analytical perspective, they’re two very different phenomena.” Mark Zandi, chief economist at Moody’s, added, “We’re growing. We’re not in recession. But we’re not going anywhere quickly.”

    For Friday’s session, investors focused on weekly gains, chip stock weakness, Meta’s rally, Circle’s bank approval, and the first trading day for SK Hynix in the United States.

  • Standard Chartered Launches Direct USDC Minting and Redemption for Institutional Clients in Dubai

    Standard Chartered Launches Direct USDC Minting and Redemption for Institutional Clients in Dubai

    Standard Chartered has become the first Global Systemically Important Bank to offer direct USDC minting and redemption services to eligible institutional clients. The service, launched through the bank’s Dubai International Financial Centre operations on July 2, 2026, integrates banking, custody, and digital asset access into a single onboarding process.

    In partnership with Circle, the issuer of USDC, Standard Chartered enables institutions to mint and redeem the stablecoin without needing a separate account with Circle. The bank stated that this launch marks the initial phase of a broader stablecoin strategy, with plans to expand into additional markets pending regulatory approvals.

    Dubai Operations Open USDC Access for Institutions

    Standard Chartered is the first systemically important bank licensed to offer institutional access to USDC minting and redemption through its own platform. The service connects fiat banking, digital asset infrastructure, and public blockchain networks under the bank’s existing compliance, governance, and risk management frameworks.

    Eligible clients can now access USDC through the bank’s Dubai operations. Future market expansions will depend on regulatory clearance and local market readiness, though the bank has not yet specified which regions will follow.

    This launch adds another regulated digital asset service to the United Arab Emirates, which has been developing a robust blockchain and stablecoin ecosystem. However, Standard Chartered has not disclosed client numbers, transaction limits, fees, or minimum account requirements.

    Service Supports Settlement, Treasury, and Liquidity

    The service targets institutional use cases such as on-chain settlement, treasury operations, and liquidity management. Clients can move value between traditional banking systems and blockchain networks through a single provider.

    Standard Chartered plans to combine banking, custody, and digital asset services within the same institutional offering, applying its normal controls to stablecoin-related transactions. Roberto Hoornweg, CEO of the bank’s corporate and investment banking division, noted that digital assets are becoming a key part of global financial infrastructure and that institutional clients expect “the same levels of trust and governance” found in traditional markets.

    The current offering focuses on minting and redemption. Clients can create USDC by transferring eligible funds through the bank and redeem the stablecoin back into fiat currency. Payment-related services remain under development, with no launch date announced.

    Circle Partnership Expands Institutional USDC Access

    Circle provides the USDC infrastructure behind the service. The company issues the stablecoin through regulated entities and manages the minting and redemption process. Kash Razzaghi, Circle’s Chief Commercial Officer, said financial institutions are seeking “trusted ways to access stablecoins” and blockchain-based markets, and that the partnership could support settlement, payments, and treasury operations while maintaining compliance standards.

    As of July 2, 2026, USDC traded near $1.00, with a market capitalization of approximately $73.2 billion and a 24-hour trading volume of about $15.6 billion. The stablecoin operates across several public blockchain networks and is widely used for transfers, settlement, trading, and liquidity management.

    Future versions of the service may support payment-related uses, but the bank has not provided a timeline. Retail customers are not included in the initial rollout.