Circle launches smart contracts with BlackRock to BUIDL, traditional finance adopts the acceleration of stablecoin legislation?

The stablecoin issuer Circle has announced a new smart contract feature for BlackRock's token fund, BUIDL. Ryan Adams, the founder of Bankless, boldly predicts that stablecoin legislation will soon pass in the United States as BlackRock and banks are eager for their emergence.

Circle Launches Smart Contract for BlackRock's BUIDL Fund

The stablecoin issuer Circle has announced the introduction of a new smart contract feature allowing holders of BlackRock's BUIDL institutional digital liquidity fund to quickly convert their shares into USDC through Circle. This smart contract provides BUIDL investors with near real-time and 24/7 trading access, bringing the core benefits of tokenized assets.

Circle CEO Jeremy Allaire stated:

Tokenizing assets is just one important dimension in addressing investor pain points. USDC allows investors to quickly withdraw tokenized assets, reducing costs and eliminating friction. We are excited to provide this functionality to BUIDL investors and offer the core benefits of blockchain transactions through USDC.

The groundbreaking smart contract feature by Circle enables the transfer of USDC BUIDL shares smoothly on the secondary market. USDC provides a reliable and transparent method for users who wish to sell BUIDL shares but still hold digital dollars.

Can BlackRock's BUIDL settle in real-time? Why is this a significant step for the industry?

Adoption by BlackRock and Banks to Accelerate Stablecoin Legislation

Founder of Bankless, Ryan Adams predicts:

Stablecoin legislation will soon pass in the United States because BlackRock and banks want it.

The new BlackRock BUIDL fund on Ethereum is a high-bandwidth pipeline between U.S. Treasuries and USDC, bringing trillions of dollars onto the blockchain. Circle, the issuer of USDC, may soon go public.

BlackRock invested in Circle in 2022 and has engaged in a series of partnerships with them. Adams believes that banks will enter the stablecoin market by acquiring/cooperating/controlling native crypto companies, lobbying for stablecoin legislation, and working towards this goal. The U.S. lacks the political will to establish a central bank digital currency (CBDC). They are creating a de facto stablecoin by issuing stablecoins on public crypto networks like Ethereum through private banks.

Stablecoins will happen in the U.S. because BlackRock and the banks want them to happen.

This could not be more obvious.

The new BlackRock BUIDL fund on Ethereum is a high bandwidth pipeline between U.S. Treasuries and USDC.

Pipelines will bring trillions onchain.

The USDC…

— RYAN SΞAN ADAMS – rsa.eth 🦄 (@RyanSAdams) April 11, 2024

Recently, U.S. Treasury Secretary Yellen and Federal Reserve Chairman Powell have also urged for the swift passage of stablecoin legislation to ensure the safe and reliable operation of stablecoins within the financial ecosystem.

"Pass Stablecoin Legislation Quickly!" Urges Federal Reserve Chairman Powell for urgent regulation of stablecoins, requesting Congress to speed up

Gradual Increase in USDC Market Cap

According to data from CoinGecko, the total market value of USDC has continued to grow this year, reaching $32.2 billion, while the leading USDT is over $107.2 billion, more than three times that of USDC.

After experiencing a decline in market value following the banking crisis last year, USDC has begun to recover this year. This may be related to the issuance of Bitcoin spot ETFs and the entry of traditional financial institutions, as Circle is the largest stablecoin issuer in the U.S. and has close relationships with compliant exchanges like Coinbase and BlackRock.