Circle is relying on a $1 billion cash reserve to weather declining market share and new competition from other stablecoins.
Circle’s total stablecoin supply has been shrinking since the start of the year, hovering around $24 billion in USDC as of August.
That’s about 43% less than the $42 billion token supply in January.
Chief executive Jeremy Allaire said: “It’s not just internet payments companies, it’s all kinds of financial services companies and other companies that are starting to get more involved. I do think there’s this new The competition is really great and it will push more and more companies into the space.”