Key Takeaways
- Circle CEO stated that retail users could continue to access USDC through various channels
- Circle’s decision to limit consumer accounts appears to align more closely with the practices of Tether
In a strategic move, Circle, the issuer of the USDC stablecoin, has announced the discontinuation of support for consumer Circle Mint accounts. This decision signifies a significant shift towards institutional-focused operations, bringing it closer to the practices of its main competitor, Tether.
A spokesperson for Circle confirmed, “Circle is phasing out support for legacy consumer accounts and has notified individual consumers of this decision.” However, it is important to note that this change does not affect business or institutional Circle Mint accounts, which will continue to operate without disruption.
Retail users, particularly those with zero balances in their consumer accounts, have received emails notifying them of the impending account closures scheduled for November 30.
While this may come as a surprise to some, it is essential to clarify that Circle has been primarily catering to institutional clients for several years. CEO Jeremy Allaire emphasized this in a post on social media, stating, “We haven’t allowed individuals to open Circle accounts in years, and have been institution-only for years as well.”
For those concerned about the accessibility of USDC and other Circle stablecoins, Allaire reassured the community that retail users could continue to access USDC through various channels. These include brokerages, cryptocurrency exchanges, and digital asset wallet services, ensuring that retail users can still make use of the stablecoins without interruption.
In response to the recent developments, Allaire also addressed concerns within the crypto community, dispelling any rumors or “FUD” (Fear, Uncertainty, Doubt).
He stressed that the primary change is the discontinuation of support for a small number of individual user accounts that were still open. He urged users to disregard conspiracy theories and emphasized that Circle has strong retail partnerships worldwide.
Circle’s decision to limit consumer accounts appears to align more closely with the practices of Tether, its main competitor in the stablecoin market.
Tether, which remains the largest stablecoin issuer, enforces a $100,000 minimum threshold for individual consumer accounts. This means that individuals looking to mint or redeem USDT through Tether must meet this minimum requirement.
USDC, the second-largest stablecoin offering, boasts a total supply of approximately $25 billion, indicating its significant presence in the market. However, Tether continues to dominate the stablecoin landscape with a total supply of approximately $91 billion for its USDT token.
