Circle has initiated ‘Circle Research’, a new venture aimed at propelling technical advancements in the realms of cryptocurrency, blockchain, and Web3 through open-source investigation. The launching of Circle Research is seen as a step forward in hastening and broadening the scope of innovation in these domains by opening up research outcomes to the worldwide community. The primary open-source offering from Circle Research comes in the form of the Perimeter Protocol, which lays down a novel framework for the establishment of on-chain credit markets.
At the heart of Circle’s philosophy is the endorsement of collective wisdom as a driver for forward movement. Through Circle Research, the company extends its staunch support for open-source ideologies, ensuring that its top-notch research is available to the global populace. The initiative underscores the importance of fostering collaboration and openness, with the aspiration to contribute to societal welfare, uplift security standards, and fast-track innovation in crypto, blockchain, and Web3 landscapes.
Being a noteworthy forerunner in blockchain technology, Circle carries a rich legacy of expertise and a track record of excellence. Circle Research is conceived as a platform to magnify this legacy, melding it with fresh insights to tackle intricate challenges, thereby emerging as a distinctive and formidable entity in the sphere of open-source research and development.
The announcement also marks the debut of Circle Research’s first contribution – the Perimeter Protocol, envisioned as a new norm for facilitating credit transactions online. This protocol is essentially a suite of smart contracts, crafted on open standards, that paves the way for hassle-free capital exchange on secure, open, and public networks.
Circle has always been rooted in the ideology of promoting sound monetary practices online, commencing with USDC and extending to EURC. The introduction of stablecoins like USDC has demonstrated substantial utility to a wide spectrum of stakeholders, encompassing developers, enterprises, end-users, and beyond, across numerous application scenarios. This includes its role in global lending markets within the DeFi arena. Nonetheless, for newcomers wishing to venture into these markets, the challenge lies in securely accessing on-chain credit through robust standards and underwriting procedures, which poses a significant entry barrier.
In this light, Circle is unveiling the Perimeter white paper and its public GitHub Repo to further the development of open protocol transactions, focusing on credit. The Perimeter initiative aims to address the challenges associated with integrating real-world assets and un-or-under collateralized loans into a protocol, by establishing standards for underwriting and permissioning, and offering it as a public commodity.
The design of Perimeter is such that it can cater to a vast array of credit scenarios, ranging from invoice factoring for small to medium-sized enterprises, to institutional crypto credit for trading ventures, global payroll advancements, or instant settlement functionalities as a part of merchant processing.
Rachel Mayer, the VP of Product at Circle, emphasized how DeFi protocols have revolutionized the way open networks and stablecoins are enhancing value and financial inclusivity for anyone equipped with a wallet and internet connectivity. She highlighted the transparent movement of funds and the role of smart contracts in augmenting efficiency, automation, and speed in contrast to conventional financial markets, courtesy of programmable infrastructure and round-the-clock digital asset rails.
Similarly, Dave Sutter, the CEO at OpenTrade, acknowledged the Perimeter Protocol as a pivotal technological base for crafting a secure, scalable, and composable platform that acts as a conduit between traditional financial markets and digital asset arenas, bridging technological, legal, and operational gaps.
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