💰 Blockchain Compliance and Cross-Border Transactions

Today's Highlights

• Circle - A tale of blockchain and peer-to-peer solutions
• Learn - a couple of courses to further your knowledge in crypto
• In Other News - a few interesting developments we're tracking

Circle - A Tale of Blockchain and Peer-to-Peer Solutions

Circle, a financial services company headquartered in Boston, established in 2013 by Jeremy Allaire and Sean Neville. The company's overarching goal is to revolutionize the global economy by leveraging blockchain technology for its peer-to-peer payment solutions and cryptocurrency-related offerings.

Circle's initial product, the Circle Pay app, debuted as a bitcoin trading exchange platform. This app facilitated swift and fee-free money transfers between individuals, much like the functionalities offered by platforms such as Venmo under PayPal. Particularly resonating with the younger demographic in Europe, the Circle Pay app gained popularity among Millennials. The app's user base was predominantly composed of younger individuals, with around 90% of European customers in 2017 falling below the age of 35, and 60% being under 25. In June 2017, Circle Pay made waves by introducing a complimentary money transfer service bridging the gap between the United States and Europe, thereby enabling seamless cross-border transactions.

Circle also spearheads the Centre project, an open-source endeavor named after the Cent Routing Exchange protocol. This project operates on Ethereum's blockchain, utilizing Centre tokens (CENT) for the smooth execution of transfers between consumer digital wallets that support diverse currencies. This initiative aims not only to facilitate the transfer of funds but also to ensure compliance with financial regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. Centre's impact is truly global, facilitating transfers across different countries and currencies. For instance, a user located in the UK can seamlessly convert British pounds to Korean won and subsequently transfer them to a digital wallet user situated in Korea, all within the app's ecosystem.

Circle's business model distinguishes itself by offering its products without transaction or transfer fees through various app stores. Instead of charging fees, Circle generates revenue by engaging in the trading of cryptocurrencies within over-the-counter (OTC) markets and digital exchanges. Additionally, Circle profits from interest rate spreads on the reserve balances it safeguards for its customers. These reserved funds are strategically invested, allowing Circle to capture a portion of the accrued interest as revenue. Although the Centre project currently operates on the Ethereum blockchain, it is engineered to seamlessly integrate with other blockchains in the future. Circle has raised a total of $1.1B in funding.

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