Circle wants to help companies access DeFi lending markets with new API – TechCrunch

Cryptocurrency firm Circle has announced that it plans to launch a brand new API for corporations utilizing Circle accounts to handle crypto property — and particularly USDC stablecoins. The brand new API will let corporations entry decentralized finance (DeFi) protocols beginning with Compound lending swimming pools.

Circle is healthier referred to as one of many founding members of the Centre consortium with Coinbase. Together with different crypto partners, they’ve issued USD Coin (USDC), a preferred stablecoin.

Because the identify suggests, stablecoins are cryptocurrencies with a hard and fast worth. One USDC is all the time price one USD. Auditing companies recurrently test that issuers all the time preserve as many USD in financial institution accounts as USDC in circulation.

The concept behind USDC is that you may manipulate cash extra simply. In line with USDC backers, shifting cash from one individual to a different needs to be as straightforward as sending bitcoin from one pockets to a different. Circle has its personal answer with Circle accounts. Account holders can programmatically ship, obtain and maintain USDC utilizing commonplace API calls.

Particularly, Circle has constructed ramps to bridge the hole between fiat currencies and cryptocurrencies. With Payments, you possibly can settle for card funds, financial institution transfers and USDC transactions. Every part arrives in your Circle account as USDC. Equally with Payouts, you possibly can ship financial institution transfers out of your Circle account.

Now, Circle additionally desires that can assist you entry extra options together with your USDC presently in your Circle account. With the upcoming DeFi API, you’ll be capable to entry DeFi protocols with out having to manually ship USDC tokens to a different pockets. Circle will begin with the Compound protocol.

Compound manages crypto-based lending markets. Some customers present crypto property and contribute to liquidity swimming pools. Others borrow crypto property — they first want to offer one other kind of crypto as collateral.

Customers who lend cash on Compound are rewarded with rates of interest. As an example, once you provide USDC utilizing the Compound protocol, you get 1.74% in annual proportion yield (APY). As USDC is a well-liked collateral for the Compound protocol, it is sensible that Circle is embracing the protocol with its enterprise accounts. It’s an attention-grabbing addition to Circle’s treasury infrastructure.