Safe, a leading blockchain-based asset custody protocol, has partnered with stablecoin issuer Circle to accelerate institutional adoption of USDC by providing secure, programmable, and compliant on-chain treasury solutions.
The collaboration aims to integrate Circle’s regulated USDC infrastructure with Safe’s smart contracts. This will enable enterprise-grade solutions for managing treasury flows, policy-based approvals, and access to decentralized finance (DeFi) liquidity.
Institutions can now manage fiat capital on the blockchain without relying on centralized intermediaries. This integration enhances Safe’s ecosystem for secure, scalable, and automated institutional custody.
A key component of the alliance is the use of Circle’s Cross-Chain Transfer Protocol (CCTP). This protocol facilitates native issuance and burning of USDC across compatible networks.
CCTP removes the need for wrapped tokens, enabling transparent movement of USDC balances between different networks. This eliminates delays and risks often associated with central intermediaries for inter-network treasury movements.
Lukas Schor, co-founder of Safe, stated that the flow of institutional capital into self-custody and DeFi demands secure, scalable tools. He added that the partnership positions USDC as a central pillar of the Safe ecosystem, making Safe the primary platform for institutional stablecoin operations in DeFi.
Kash Razzaghi, Circle’s Commercial Director, highlighted that institutions seek reliable and scalable infrastructure as they migrate to the on-chain environment. He noted Safe’s proven ability to facilitate widespread adoption of USDC safely and efficiently.
Safe maintains a significant market presence, holding over $60 billion in Total Value Locked (TVL). It processes approximately 0.53% of all Ethereum transactions.
The protocol currently secures $2.5 billion in Circle’s stablecoin, underscoring its role as a preferred platform for institutional stablecoin operations. Since 2023, over $57 billion in USDC has circulated through Safe, including $25.3 billion in transfers during September.
Safe recently launched Safe Labs, a subsidiary focused on offering self-custody infrastructure for enterprises with guaranteed availability and service level agreements. This division oversees the SafeWallet interface, used by corporations and funds to manage digital assets at scale.
The collaboration comes three months after Circle’s public listing on the New York Stock Exchange. The company achieved a market capitalization of $31.09 billion.
Circle’s stock opened at $69, briefly surging to $84.92, which was 174% above its initial public offering price of $31. It currently trades around $133.90 per share.