Cryptocurrency payments infrastructure provider and stablecoin issuer Circle on Friday (March 4) pushed off the launch of its decentralized finance (DeFi) application programming interface (API) product, saying it needs more regulatory guidance before releasing it, The Block reported.
Circle had announced in June it would be unveiling the DeFi API product in a blog post shared by CEO Jeremy Allaire on Twitter. He promised “seamless, safe, secure and regulated infrastructure for accessing and building on DeFi lending markets” in his tweet.
Circle’s DeFi API product would have helped businesses access Compound on the Ethereum network. Resources that were initially slated to support the release have now dedicated to launching the Circle Yield product and making its USDC stablecoin available on new blockchains, Circle told The Block in a statement. Circle’s spokesperson wouldn’t say when the product would be launched.
“We continue to focus on empowering institutions to send, spend and secure USDC and unlock new ways of doing business with the suite of services available through Circle Account,” the company said in its statement.
“The timing of the DeFi API product rollout will be guided by developments in, and the availability of, further regulatory guidance, enhanced compliance tools, and blockchain identity protocols,” the statement says.
Circle launched USDC on the Hedera network in October and renegotiated its deal with a special purpose acquisition company (SPAC) in February with a $9 billion valuation, double the previous number.
Related: In Winning DeFi, Circle’s USDC Shows It Can Be the No. 1 Stablecoin
Circle’s USDC is the No. 2 stablecoin by market capitalization, with roughly $53 billion in circulation, far behind Tether’s USDT at $78.4 billion. USDC started 2021 with a $4.10 billion market cap and started 2022 at $42.56 billion — a growth rate of more than 10 times.
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