Intercontinental Exchange (ICE) to explore integrating Circle's stablecoins into its trading and clearing empire

Intercontinental Exchange (ICE)—the parent company of the New York Stock Exchange, which reported revenues of $9.3 billion in 2024 and has a market capitalization of $100 billion—has signed a memorandum of understanding with Circle, issuer of the world's second-largest stablecoin

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, and Circle, the issuer of the world’s second-largest stablecoin, have signed a memorandum of understanding to explore integrating Circle’s products into ICE’s trading and clearing empire, according to an official statement.

The agreement will see ICE evaluate using Circle’s flagship $60 billion (market cap) USDC and US Yield Coin (USYC) across its derivatives exchanges, clearinghouses and data services to develop new markets and products. Hashnote, a Miami-based firm Circle acquired in January, launched USYC, which offers a 3.8% yield and is backed by short-duration U.S. Treasury bills and repo/reverse repo activities.

“We believe Circle’s regulated stablecoins and tokenized digital currencies can play a larger role in capital markets as digital currencies become more trusted by market participants as an acceptable equivalent to the U.S. Dollar,” said Lynn Martin, President of the New York Stock Exchange.

Stablecoins are digital tokens designed to maintain stable value, typically pegged to fiat currencies such as the U.S. dollar. They are used for various purposes, including payments, savings and investment products, and to create new financial instruments and markets.

“We are pleased to collaborate with ICE to explore the integration of Circle’s stablecoins and tokenized digital currency products with select ICE businesses and technology platforms,” said Jeremy Allaire, co-founder and CEO of Circle. “We believe this collaboration will unlock significant value for market participants and contribute to the broader adoption of digital currencies in the global financial system.”

Stablecoins have become increasingly popular in recent years, as they offer several advantages over traditional financial products, such as lower costs, faster transaction speeds and 24/7 availability.

Earlier this year, a bipartisan group of lawmakers introduced two bills that would create a clear regulatory framework for stablecoins in the U.S. The bills, named the "Stablecoin Tether Bill" and the "Stablecoin Clarity and Innovation Act," aim to provide guidance on key issues such as consumer protection, banking integration and anti-money laundering.

The bills are being co-led by Sens. Bill Hagerty (R-Tenn.) and Mark Warner (D-Va.), and Reps. Brad Sherman (D-Calif.) and Steve Scalise (R-La.). They follow a year of bipartisan negotiations on legislation to regulate stablecoins, which began in early 2023.

Stablecoins have become a hot topic in the U.S., with both Trump administration officials and leading economists highlighting their importance for maintaining the U.S. dollar's global dominance.

World Liberty Financial, a cryptocurrency project in which the Trump family has already earned at least $400 million, announced on Tuesday that it also plans to launch a stablecoin backed by U.S. Treasurys, dollars and other cash equivalents.

The project is a joint venture with the Trump-linked firm, holding a 51% majority stake, and an unnamed blockchain technology firm, which contributes a 49% equity stake and handles day-to-day operations.

The Trump family members involved in the project include Donald Trump Jr., Eric Trump and Lara Trump, who serve as advisors to World Liberty Financial.

The project's website describes the stablecoin as "a new, revolutionary currency that will change the way we think about money."

The stablecoin, named "WLF Stabletoken," is expected to be launched later this year, pending necessary approvals.

"We are excited to be launching this new stablecoin, which we believe will be a game-changer for the industry," said a spokesperson for World Liberty Financial. "We are committed to creating a product that is innovative, efficient and meets the needs of today's consumers."

The project is part of a broader effort by Trump-linked firms to capitalize on the cryptocurrency boom.

In 2023, Trump's namesake hotel in Washington, D.C., partnered with the DeFi project Parallel to launch a new project called "Trump Hotel Chain Metaverse."

The project, which is still in the early stages of development, aims to create a decentralized autonomous organization (DAO) to manage the Trump hotel brand in the metaverse.

The project is being led by Parallel CEO and co-founder, Steve McErlean, who expressed enthusiasm for the collaboration, stating that they are "honored to be working with the Trump family to bring this incredible brand to the metaverse."

McErlean believes that the partnership will unlock "unfathomable value" for both parties and the entire Web3 community.

The project's announcement comes amid a broader trend of hospitality brands expanding their presence in the metaverse.

Hilton, Marriott and Hyatt are among the hotel chains that have already launched virtual outposts in Decentraland and other metaverse platforms.

The integration of Trump's hotel brand into the metaverse could attract new audiences to the brand and generate revenue