Circle Internet Financial has made a significant move in the world of blockchain and Web3 with the introduction of its latest innovation, the Perimeter Protocol. This new open-source code for smart contracts is ready to become the foundation for tokenized credit markets, bringing in a fresh era of financial opportunities.
Circle is a global fintech company that provides financial technology solutions for businesses of all sizes to harness the power of digital currencies and public blockchains for online payments and more.
Circle initially started as a peer-to-peer payments technology company. It now manages USDC, a stablecoin pegged to the U.S. dollar. The company offers crypto treasury management solutions for businesses to manage digital assets.
Circle Research, Perimeter protocol, and Whitepaper
According to Circle, Perimeter Protocol can support several credit use cases, such as invoice factoring, payroll advances, instant settlement for merchants, and credit trading for institutional investors.
With a design that is open-source and accessible, Circle Research, which is in charge of the project, has made the Whitepaper available for anyone, especially developers who would want to build on it.
“With Perimeter, we are solving for how to bring real-world assets and un-or-under collateralized loans with standards for underwriting and permissioning into a protocol we are offering as a public good,” it said.
In the words of Rachel Mayer, VP of Product, DeFi protocols have pioneered how open networks using stablecoins provide value and financial inclusion to anyone with an internet connection. This is achieved through transparent fund flow and smart contracts that enhance efficiency, automation, speed, and scalability compared to traditional financial markets due to programmable technology and continuous digital asset operations.
Additionally, Dave Sutter, CEO at OpenTrade, highlights that OpenTrade serves as a bridge between traditional and digital asset markets, and Circle Research’s Perimeter Protocol plays a crucial role as a secure and scalable foundation for this connection.
