Intercontinental Exchange Inc. Has Announced That It Signed a Memorandum of Understanding with Circle Internet Group, Inc.

The agreement outlines plans to evaluate applications for USDC and USYC within ICE's core markets, including its derivatives exchanges, clearinghouses, and data services.

Intercontinental Exchange Inc has announced the signing of a memorandum of understanding (MoU) with Circle Internet Group, Inc to assess opportunities for new product development based on Circle’s USDC stablecoin and US Yield Coin (USYC) digital asset.

The agreement, which was disclosed on Monday, outlines plans to evaluate applications for USDC and USYC within ICE’s core markets, including its derivatives exchanges, clearinghouses, and data services.

“ICE’s reputation and global network across markets offer a unique pathway for Circle to integrate USDC into major new use cases, and we are thrilled for the opportunity to innovate together,” said Jeremy Allaire, Co-Founder and CEO of Circle.

“We believe Circle’s stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the US Dollar. We are excited to explore the potential use cases for USDC and USYC across ICE’s markets,” added Lynn Martin, President of the New York Stock Exchange.

USDC is a fully reserved stablecoin, designed to maintain a close tracking to the US dollar. As of March 26, Circle reported more than $60 billion in circulation, with the reserves being held primarily in the Circle Reserve Fund, a registered government money market fund. This asset supports a broad set of use cases, including payments, capital market activities, and dollar-denominated digital storage.

On the other hand, USYC, a tokenized version of a money market instrument, showcases Circle’s initiative to bridge traditional financial products with digital infrastructure.

The MoU signals ICE’s willingness to explore broader use of these assets as part of its broader strategy to develop services that integrate digital currencies with regulated financial systems.

Circle is rolling out its operations and technologies in Japan through its Japanese entity, Circle Japan KK, and local partnerships.

In a move that aims to further cement its operation in Japan, Circle’s local partners will be leveraging its platforms to enable the adoption of USDC in Japan.

Note that USDC is a fully-reserved digital dollar that is backed 1:1 by highly liquid cash and cash-equivalent assets and is redeemable 1:1 for US dollars. The USDC reserves are held at regulated financial institutions with published third-party monthly attestations, providing a high level of transparency for businesses and users.

These partnerships include a joint venture with Japanese financial conglomerate SBI Holdings, with SBI VC Trade initiating a full-scale launch of USDC on March 26, alongside plans by leading exchanges Binance Japan, bitbank, and bitFlyer to list and distribute USDC in the near future.

SBI VC Trade, a cryptocurrency exchange in Japan and subsidiary of SBI Holdings, secured regulatory approval to introduce USDC on March 26 under the Japan Financial Services Agency’s stablecoin regulatory framework, making USDC the first and only global dollar stablecoin approved for use in Japan.

Circle’s launch in Japan establishes USDC’s market presence and liquidity in the country. By integrating USDC into Japan’s digital finance ecosystem, Circle and its partners aim to provide solutions for digital payments, settlements, and treasury operations.