Circle announced this week that USDC became the first stablecoin to gain compliance with new Canadian digital asset regulations.

Canada’s new regulations call for delisting noncompliant stablecoins after December 31st.

Circle’s compliance means USDC, which aims to maintain a 1:1 peg with the US dollar, can trade on crypto exchanges in the Canadian market, according to a new press release.

Dante Disparte, chief strategy officer and head of global policy at Circle, says the new development underscores the stablecoin issuer’s regulatory efforts.

“The Canadian Securities Administrators’ proactive approach in providing a digital asset regulatory framework reinforces the integrity of digital asset markets, while ensuring continued reliance on USDC across Canada’s burgeoning ecosystem.”

The announcement comes as Circle launched a new wave of layoffs, Bloomberg reports. A company spokesperson tells the news outlet the downsizing was routine and represented less than 6% of the firm’s workforce.

“Circle regularly reviews our investments and expenses. This includes investing in teams and operational infrastructure that need to grow, while marginally reducing spend and some roles in other areas of the business.”

This summer, USDC and Circle’s euro-pegged stablecoin EURC also achieved compliance with the European Union’s Markets in Crypto Assets (MiCA) regulations.

MiCA is upcoming EU legislation that will provide rules covering the supervision, consumer protection and environmental safeguards of crypto assets.

The law includes measures that aim to reduce financial crimes including market manipulation, money laundering and terrorist financing, and it places stablecoin issuers under the European Banking Authority while requiring them to hold sufficient liquid reserves.

It’s also scheduled to take effect in December 2024.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Asset management titan BlackRock is reportedly in talks with numerous crypto exchange platforms about using its proprietary token BUIDL as collateral for derivatives contracts.

According to a new report by Bloomberg, anonymous people familiar with the matter say the world’s largest asset manager is exploring the idea of utilizing BUIDL – the crypto asset related to the firm’s tokenized mutual fund – as collateral for trading derivatives contracts.

BUIDL, which launched in March of this year and stands for BlackRock USD Institutional Digital Liquidity Fund, is a tokenized money-market fund designed to offer a stable value of $1 per token built on the Ethereum (ETH) blockchain that offers blue-chip traders yields.

Bloomberg says the crypto exchanges BlackRock is in talks with include Binance, the world’s largest crypto exchange by volume, as well as OKX and Deribit.

Previously, it was reported that the fund invests in cash, US Treasury Bills, and repurchase agreements and sends dividends directly to investors’ wallets as new tokens every month.

As stated by Robert Mitchnick, BlackRock’s head of digital assets, in a press release issued by Securitize, BlackRock’s brokerage partner,

“[BUIDL] is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”

In April, stablecoin issuer Circle launched a new smart contract function that permits holders of BUIDL to convert their tokens into USDC. At the time, Circle chief executive Jeremy Allaire said that the new functionality would allow “investors to move out of tokenized assets at speed, lowering costs and removing friction.”

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Patrick Hansen, Circle’s European strategy director, predicted major leaps in the EU’s crypto and stablecoin market by late 2025.

At the European Blockchain Convention in Barcelona, Hansen shared expectations of advancements in the crypto market structure across the European Union. The bloc’s Markets in Crypto-Assets Regulation, known as Markets in Crypto-Assets Regulation, would be the primary catalyst for this growth, said Hansen during a panel titled “What is Going on Behind the Scenes – Post MiCA?”

MiCA signaled a shift in the EU’s crypto regulatory strategy, providing comprehensive guidelines for governments, institutions, and investors regarding digital assets.

Indeed, MiCA outlined requirements for crypto exchanges and thresholds for stablecoin reserves. Circle (USDC) was one of the first stablecoin beneficiaries of this new regime and snagged MiCA’s inaugural stablecoin license.

Hansen disclosed that MiCA compliance and the eventual regulatory approval involved a process different from those in other regions. For instance, USDC’s issuer liaised with regulators for up to 24 months before obtaining approval.

Circle also applied for its Electronic Money Institution license in France, which was accepted by the Autorité de Contrôle Prudentiel et de Résolution, the French banking watchdog.

According to Hansen, the firm’s euro-pegged stablecoin, EURC, has jumped 60-70% since July when approval was issued. The token now boasts over 67 million euros in market cap. Hansen foresees continued growth for EURC and other stablecoins in the EU, driven by MiCA’s rules.

We believe that in the European Union, for our euro stablecoin, but for euro stablecoins overall, we can expect at least significant growth in the next 12 months.

Patrick Hansen, Circle’s EU senior director, strategy & policy

As the USDC operator solidified its European foothold, CEO Jeremy Allaire advanced plans for an initial public offering in the U.S. The digital payment provider relocated its global headquarters to the heart of New York City as part of a roadmap to go public. Circle’s new office is located in the One World Trade Center, alongside some of Wall Street’s biggest names like Goldman Sachs.