Circle Launches On-Chain Compliance Platform for USDC

On September 24, Circle, the issuer of USDC, launched a new on-chain compliance platform called “Compliance Engine.” This platform aims to assist businesses in developing blockchain applications while meeting stringent compliance requirements. It features transaction screening, monitoring tools, and services that comply with Know Your Customer (KYC) regulations, supporting multiple blockchain networks, including Ethereum and Solana. Circle CEO Jeremy Allaire stated that this marks the first time in the company’s ten-year history that its accumulated technology is available to developers and operational teams.

This initiative is a significant step for Circle in accelerating the adoption of the USDC stablecoin and challenging Tether’s market dominance. Currently, USDC has a market capitalization of $36 billion, significantly lower than Tether’s $119 billion. Additionally, PayPal’s newly launched PYUSD has entered the competition, achieving a market cap of $1 billion.

Circle is also targeting the real-world asset (RWA) market, which could potentially reach trillions of dollars, to further promote the adoption of USDC.