Explained: What is Circle Yield?

Cryptocurrency is inherently volatile. It’s one of the things that attracts some investors to it as they believe, if they back the right token, they’ll make huge gains. 

And yet, it’s this very volatility that remains one of the big turn-offs for many would be crypto investors.

One of the ways people have learned to circumvent Crypto’s Volatility is investing in the crypto exchange traded fund (ETF), which has begun to feature on various exchanges around the world.

Another product, which has popped up, developed by blockchain-focussed financial service company, Circle, is Circle Yield.

What Is Circle Yield? 

Circle started as a consumer peer-to-peer cryptocurrency payments and exchange platform. In 2020, the company shifted its focus towards its own Stablecoin, known as USD Coin (USDC), which is pegged to the US dollar. Therefore, every unit of USD Coin is backed by US$1 held in reserve.

Circle’s Yield product is only currently available to select corporate customers, who can now participate in a Circle Yield Early Access Program, which is designed to give companies a simple way to put capital into crypto yield, powered by USDC. 

This essentially offers institutional investors a way to get started with crypto lending. 

What Does It Offer Investors?

The Circle’s Yield product is regulated by the Bermuda Monetary Authority (BMA) and offers institutional investors and corporate treasurers a well-regulated alternative yield market. 

Moreover, Circle’s high yield solution provides institutional investors with a special early access period to leverage yield generating opportunities in a regulated environment.

The Question of Regulation 

Of course, regulation within the crypto space is very much a grey area, with battles currently being fought around the world over the legislation and regulation of crypto assets. 

Not to mention security. There have been a slew of crypto exchange heists recently as the controlling companies struggle to keep their customer’s assets safely guarded.

The Bottom Line 

Crypto lending is one of the more passive methods of investing in crypto assets. Now that a reputable company is helping investors to do that, let’s hope it’s only a matter of time before a similar service is offered to retail investors.