Jack Dorsey's TBD announced a partnership with Circle to facilitate cross-border payments and self-custody of USDC stablecoin. TBD will allow developers to easily build on Block's tbDEX protocol.
The partnership allows users the widespread use of digital currencies in payments and financial applications around the world. TBD will support cross-border payments as well as USDC stablecoin self-custody.
In a tweet on September 29, Jack Dorsey's TBD announced a partnership with Circle to facilitate cross-border payments and self-custody of USDC stablecoin. The Bitcoin-focused subsidiary of payment company Block wants to facilitate the worldwide adoption of digital currency in payments and financial applications.
“We're partnering with Circle to address some of our most serious financial difficulties. The challenges include decentralized, worldwide on-and-off-ramps between the fiat and crypto worlds, which can enable global use cases ranging from cross-border transfers to stablecoin self-custody.”
Emily Chiu, chief operating officer of TBD, believes Bitcoin has the potential to become a reserve currency in the future, challenging the US dollar's supremacy. Stablecoins, on the other hand, will serve as a link between them.
TBD will support USDC stablecoin for a variety of use cases. It allows developers to easily build on Block's tbDEX protocol and Web5 decentralized identification platform. The use cases include connecting traditional payments to digital assets for individuals and enterprises, real-time and low-cost worldwide transfers, and self-custody wallets for USD-backed stablecoins.
The United States' inflation and monetary tightening are devaluing the currencies of nations such as Argentina and Turkey. Stablecoins have emerged as a viable option for savings and remittances.
TBD's first aim is to facilitate remittances between the United States and Mexico. Countries such as India, Mexico, and the Philippines are the world's leading recipients of remittances. Mexico receives 95% of all remittances sent from the United States.
USD Coin Losing Market Cap Against USDT
Circle's USDC stablecoin is losing market cap to Tether's USDT stablecoin. The USDT market has dropped below $50 billion and is currently valued at $48.80 billion.
COINGABBAR VIEWS: New partnerships such as with TBD will aid in USDC adoption and may help it regain its market cap. Meanwhile, stablecoins face significant liquidity risk as the Federal Reserve raises interest rates.
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