Circle’s Expansion

Now another Circle related headline that caught my eye was that the company had partnered with TVD a subsidiary of block, formerly known as Square.

For those unfamiliar block is headed by Twitter founder and former CEO Jack Dorsey who is known for being a Bitcoin maximalist, that’s why the news that Circle had partnered with TBD to bring its USDC stablecoin to quote lay the foundation to access stable coins globally is so surprising.

You would think that TBD wouldn’t be interested in a centralized stablecoin given that it is a Bitcoin focused company.

In any case it’s clear that Circle is expanding rapidly despite the crypto bear Market, this might have something to do with the fact that most of the USDC in circulation is backed by short-term US government debt, around 40 billion dollars to be exact.

By assuming this, entire 40 billion is invested in two-year treasuries, this means that Circle is earning an interest rate of over four percent per year on 40 billion dollars.

If you do the maths that’s a whopping 1,6 billion dollars in annual interest, well over 100 million dollars per month in pure passive income.

There is a lot you can do with that kind of money especially during a crypto bear Market.

This means you need to start paying close attention to Circle.