USDC hits ATH in smart contract supply after new Concord deal  

Circle, the issuer of USDC, announced it was terminating its existing business agreement on February 17. As a result of this, it received a major financial boost. Circle has entered into a new deal with Concord Acquisition Corp., giving it a valuation of $9 billion.

This is twice the amount after the previous agreement with Concord Acquisition, concluded in July 2021, according to a publication on crypto news aggregator CoinFi.

Stablecoin’s circulation has more than doubled

The circulation of USDC has more than doubled since the original deal was announced, reaching $52.7 billion as of the above date.

Jeremy Allaire, Circle’s co-founder and CEO expressed optimism about the new partnership. He was targeting a public listing through the above merger with an SPAC (special purpose acquisition company), which would augment trust and confidence in Circle. He commented:

Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet. This is a critical milestone as we continue our mission to build a more inclusive financial ecosystem. Making this journey with Concord under our new agreement is a strategic accelerator.

Initially, the plan was to conclude the new agreement on December 8, 2022 with the potential to extend to January 31, 2023. Then, the company would be listed on the New York Stock Exchange under the stock ticker symbol ‘CRCL’.

The agreement was approved by the boards of directors of Circle and Concord Acquisition Corp. The latter’s executives also expressed a positive attitude toward the deal. Concord Chairman Bob Diamond said:

We believe our new deal is attractive because it preserves the ability of Concord’s public stakeholders to participate in a transaction with this great company.

Reciprocity

USDC, the world’s second-largest stablecoin by market capitalization and the fifth biggest cryptocurrency by market cap, underwent a positive development after the news.

According to data of Glassnode, the stablecoin’s percentage of “Supply in Smart Contracts” reached a one-month high of 42.62% today. It also hit a one-month high of 42.19% on January 19, 2022.  

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