USDC stablecoin issuer, Circle, has introduced a new tool called the Compliance Engine to help businesses and developers comply with various regulations when building on-chain financial services.
According to its CEO, Jeremy, the Compliance Engine simplifies the process of checking transactions to ensure they are not risky or illegal. It does this by screening transactions in real-time and monitoring them periodically to identify any suspicious patterns. It also helps businesses follow specific rules required by different jurisdictions.
“We’ve built up tremendous capabilities in this area over the past decade, and we’re now taking those capabilities and exposing them to developers and operations teams that are building financial applications onchain,” Jeremy said in his X account.
“This includes our new Transaction Screening tool to detect risky and suspect transactions, our Transaction Monitoring tool to help identify potential high-risk behaviors, and our new Travel Rule service, which helps companies maintain compliance with global travel rule requirements for large onchain transactions.”
He added that this new tool is integrated into Circle’s existing infrastructure, such as Circle Programmable Wallets making it easier for businesses to use without needing separate solutions. The goal is to make it simpler for companies to build on-chain products while adhering to regulatory requirements, which could increase the adoption of USDC.
Circle has undergone significant evolution over time and has contributed to the growth and improvement of the Web3 space. Initially, Circle was founded with the vision of creating “programmable money” by representing government-backed digital currency on an open internet protocol, specifically the US dollar as USDC.
USDC has experienced strong growth due to increased interest in digital assets, higher transaction volumes, and wider use cases. It is now used for various purposes such as international payments and payments for goods and services. Circle has seen increased acceptance of USDC from financial institutions, banks, hedge funds, and venture capitalists.
USDC, which is regulated with reserves held at regulated financial institutions and published monthly attestations, has been at the forefront of integrating USDC with various blockchain networks to enhance its usability.
For instance, the integration of USDC with Arbitrum, a leading Ethereum Layer-2 scaling solution, has expanded USDC’s reach and capabilities. This integration allows for cheaper and faster transactions, making it a favored platform for decentralized finance applications. USDC has also in the last couple of weeks launched on Soneium, and Sui Network.
