Circle Internet Financial, is the first issuer of a value-referenced crypto asset (VRCA), also known as a stablecoin, to file an undertaking with the Canadian Securities Administrators (CSA) in respect of USDC, its US dollar-referenced VRCA.
USDC is a VRCA that references, on a one-for-one basis, the value of the US dollar. Circle Internet maintains a reserve of assets that is at least equal to the value of the outstanding units of USDC. This reserve of assets supports a USDC account holder’s redemption right. Most Canadian investors, however, will buy and sell USDC on a registered crypto asset trading platform (CTP) and will not have accounts directly with Circle Internet.
A CSA notice outlined the requirements for VRCA issuers that want their VRCA to be offered on Canadian trading platforms (CTPs), which includes filing an undertaking containing certain representations and commitments of the issuer to the CSA. Canadian CTPs that want to offer or use USDC on their platforms will need to comply with the terms and conditions applicable to them as set out in the Notice.
In July 2024, Circle became the first global VRCA issuer to achieve compliance with the European Union’s landmark Markets in Crypto-Assets (MiCA) regulatory framework. Circle now issues both USDC and the euro-backed stablecoin EURC in the EU in compliance with MiCA’s regulatory obligations for stablecoins or e-money tokens. Last year, Circle Singapore received a Major Payment Institution License from the Monetary Authority of Singapore.