Circle CEO Says Company's Stablecoin Infrastructure Has Benefitted Prediction Markets: Here's How

Circle Internet Group Inc. (NYSE:CRCL) CEO Jeremy Allaire said Wednesday that the company’s flagship USDC (CRYPTO: USDC) stablecoin has facilitated settlements “at the speed of the Internet” on prediction markets

USDC Helps People Move Quickly, Says CEO

During Circle’s fourth-quarter earnings call, Allaire was asked about the company’s collaboration with platforms like Polymarket.

“What something like USDC does, and our infrastructure does for prediction markets like Polymarket, is that people want to be able to move quickly,” the CEO responded.

Allaire pointed out that prediction markets are driven by information, and stablecoins give end users and participants the ability to offer collateral and settle transactions at the “speed of the Internet.”

He added that bets can be executed from various wallets and from anywhere in the world, sidestepping currency exchange issues and banking restrictions.

“So it opens up global access in a more seamless way and it gives a firm like Polymarket a good infrastructure to kind of store that and surface that to users,” the top executive said.

Polymarket, powered by the Polygon (CRYPTO: POL) network, exclusively uses USDC, allowing users to buy “Yes” and “No” shares using the stablecoin. The shares representing the correct outcome are paid out $1 USDC each upon market resolution.

Kalshi, which started as a dollar-settled prediction market, also expanded to support wagers using USDC.

Circle Records Double Beat

Circle reported better-than-expected earnings and revenue during the fourth quarter, while USDC's circulating supply climbed 72% year over year

The company issued multi-year guidance targeting a 40% compound annual growth rate for USDC in circulation. 

Price Action: Shares of Circle stock pulled back 1.44% in after-hours trading after closing 35.47% higher at $83.14  during Wednesday's regular trading session, according to data from Benzinga Pro.

According to Benzinga’s Edge Stock Rankings, the stock exhibited a weak price trend across short-, medium-, and long-term periods.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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