The parent company of the New York Stock Exchange, ICE, collaborates with Circle to bring stablecoin into the Capital Market applications.

With the U.S. stablecoin legislation expected to be enacted in 2025, competition among stablecoin issuers is intensifying. Circle announced that it has signed a memorandum of understanding with the parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), to integrate Circle's USDC and its tokenized money market fund USYC into ICE's global Capital Market mechanisms.

Circle signed a memorandum of cooperation with ICE.

Intercontinental Exchange (ICE) is the parent company of the New York Stock Exchange, with a revenue of $9.3 billion and a market capitalization of $101 billion in 2024. The exchange has signed a memorandum of understanding with Circle, the issuer of the world's second-largest stablecoin, to explore the integration of Circle's products into its trading and clearing empire.

According to the agreement, ICE will assess the use of Circle's flagship products in its derivatives exchange, clearinghouse, and data services, including the USDC with a market capitalization of $60 billion and the tokenization of the money market fund USYC to develop new markets and products. USYC was initially launched by Hashnote, and Circle acquired Hashnote in January; its USYC offers a 3.8% yield, supported by short-term U.S. Treasury bills and repurchase/reverse repurchase activities.

(Circle acquires Hashnote, facilitating the seamless conversion of tokenized cash USDC and money market fund USYC)

Lynn Martin, president of the New York Stock Exchange, stated: "We believe that as digital currencies are increasingly seen by market participants as acceptable equivalents to the USD, Circle's stablecoin and tokenization of digital currencies can play a greater role in the Capital Market. We are excited to explore the potential use cases of USDC and USYC in the ICE market."

The market value of stablecoins is surging, with transfer amounts double that of Visa.

The market capitalization of stablecoins is soaring. The leading Tether's USDT market cap has reached $144 billion, while Circle, driven by compliance, has also recently made a strong comeback, with USDC's market cap reaching $60.3 billion, finally shaking off the previous low caused by the Silicon Valley Bank run and setting a new historical high.

But the real attraction lies in how these tokens have transformed from convenient tools for cryptocurrency traders into a popular medium for fast and cost-effective cross-border payments. According to data from Dune, as of February, the amount transferred by stablecoins annually reaches up to 35 trillion USD, which is twice that of Visa's transaction volume.

The United States is expected to pass legislation, with various parties vying to stake their claim in the stablecoin market.

Traditional finance is paying attention to this field. Bank of America CEO Brian Moynihan recently stated that if the US passes relevant legislation, the bank will consider the issuance of a stablecoin. Fidelity Investments has begun researching a stablecoin under its digital assets division, which currently offers custody and trading services for Bitcoin, Ethereum, and Litecoin.

The Trump administration views stablecoins as a key avenue for maintaining the global dominance of the US dollar. Legislation currently under consideration in Congress is expected to bring a clear regulatory framework for stablecoins. Coincidentally, the Trump family has already profited at least $400 million from the crypto project World Liberty Financial, which also plans to launch the stablecoin USD1 backed by US Treasury bonds, US dollars, and other cash equivalents.

( Trump WLFI partners with custodian BitGo to launch institutional-grade stablecoin USD1: solidifying on-chain dollar dominance )

This article discusses the collaboration between ICE, the parent company of the New York Stock Exchange, and Circle, as stablecoins enter the applications of the Capital Market. It first appeared in Chain News ABMedia.