Standard Chartered partners with Circle to launch direct USDC minting

Standard Chartered has become the first globally systemically important bank to offer direct USDC minting and redemption. 

The bank announced Thursday it has partnered with Circle to allow institutional clients to mint and redeem USDC, without needing direct Circle accounts.

The service launches first for Standard Chartered’s clients in Dubai, and will expand to other regions “subject to regulatory approvals and market readiness.”

Circle said the service allows for institutional use cases such as on-chain settlement, treasury, and liquidity management, with support for payment-related functions in the future. 

“Digital assets are becoming an increasingly important component of global financial infrastructure, and institutional clients are seeking the same levels of trust and governance that underpin traditional markets.

With this launch, we are extending those standards into a rapidly evolving segment of the financial system,” said Standard Chartered’s CEO, Roberto Hoornweg.

Standard Chartered joins 140 other giants to launch OUSD stablecoin

The timing comes as more TradFi giants are increasingly dabbling in the stablecoin market amid growing institutional demand. As recently as June 30, Cryptopolitan reported that over 140 financial companies have joined to launch a shared stablecoin called Open USD (OUSD). 

The founding members include Visa, Stripe, Mastercard, American Express, and other partners such as Standard Chartered.

Circle took a hit following the news, falling as much as 15%, as many viewed OUSD as a major rival challenging USDC’s business model.

Circle charges minting and redemption fees for USDC. OUSD launches with zero minting and redemption fees. The reserve yield is distributed among all partners, which serves as an incentive to use the stablecoin. 

Ark Invest bets more on Circle

Despite a 41% decline over the past month, Cathie Wood’s investment firm, Ark Invest, continues to bet on Circle’s shares (CRCL). On Wednesday, Ark purchased a total of 287,609 CRCL for roughly $17.8 million across its ARKK, ARKW, and ARKF funds.

USDC remains the second-largest dollar stablecoin with over $73 billion in market cap. 

Analysts at Bernstein maintain an Outperform rating for CRCL despite the OUSD announcement. Bernstein keeps its price target for Coinbase shares at $190, representing a 203% increase from the current market pricing. 

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