Circle Delays Launching DeFi API Product, Cites Needs for more Regulatory Guidances
Nicholas Otieno Mar 07, 2022 04:10
Circle is calling for clearer regulatory guidance for the launch of its DeFi API product.
Circle, a major crypto payments infrastructure provider and stablecoin issuer, on Friday announced that it postponed the launch of its anticipated decentralized finance (DeFi) application programming interface (API) product, citing the need for more regulatory guidance before its release.
The DeFi API product would help businesses access Compound Finance on the Ethereum network. Circle has now delayed the product and instead dedicated resources, which were initially allocated to support the release, to launching the Circle Yield product and making the USD Coin (USDC) stablecoin available on new blockchains.
“The timing of the DeFi API product rollout will be guided by developments in, and the availability of, further regulatory guidance, enhanced compliance tools, and blockchain identity protocols,” Circle mentioned in its statement.
“We proceed to concentrate on empowering establishments to ship, spend and safe USDC and unlock new methods of doing enterprise with the suite of companies out there by way of Circle Account,” the firm further elaborated about its move.
In June last year, Jeremy Allaire, Circle CEO, announced that the firm would be launching the DeFi API product. He promised “seamless, safe, secure and regulated infrastructure for accessing and building on DeFi lending markets”.
Enabling Businesses to Access DeFi
Established in 2013, Circle originally wanted to develop a mainstream Bitcoin payment platform. But later the firm pivoted to develop a social payments app. In June last year, Circle announced plans to become a public company through a merger with Concord Acquisition Corp, a SPAC.
Circle is best known as the issuer of USDC, a popular stablecoin. With USDC, transferring funds from one wallet to another becomes quite easy. The firm added various infrastructure products around USDC, like Circle Accounts. Circle has also developed ramps to bridge the gap between crypto-assets and fiat currencies.
Circle plans to launch a new API for firms using Circle accounts to manage crypto assets, especially USDC stablecoins. The new API will enable companies to access DeFi protocols.
The launch aims to enable the easiest way for businesses to access DeFi, enabling firms to easily and confidently access new lending markets powered by DeFi. With the upcoming Circle’s DeFi API, businesses will be able to access leading DeFi protocols, starting with Compound lending pools on the Ethereum blockchain.
The DeFi API is set to enable businesses to automate USDC flows into DeFi lending markets, easily and quickly access to DeFi protocols where they can earn interest, governance tokens, and provide the same access services to their customer platforms.
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