Initially launched as an attractive alternative to traditional Internet accounts for businesses, the newest features of the Circle Business account seem to target a different type of competitor: Decentralized Finance (DeFi).

Circle, a Goldman Sachs-backed payment company and the issuer of the USDC stablecoin, announced its Circular Business Account service on March 10, 2020. The accounts included a range of services designed to help businesses take advantage of the USDC, including APIs that can connect to traditional payments. sticks, accept dollar bills like USDC, USDC wallet, and access multiple e-commerce markets.

However, due to the stable cash back that USDC can generate in the DeFi protocols, account holders are encouraged to transfer their stable cash from currencies to other locations. According to DeFirate, lending protocols like Aave and Fulcrum currently generate 3.4% and 11.6% on USDC, respectively.

But on November 5, 2020, Circle announced new high yielding accounts that could encourage account holders to keep their money on CeFi. On Thursday, in a tweet, Circle announced a waiting list for new interest-bearing business accounts. According to their website, terms and prices will vary between APY accounts, which are open at 8.5%, and 12-month APY accounts, at 10.75%.

In addition, income will be accrued daily and paid weekly, as opposed to the monthly or yearly incomes that are often found in traditional business accounts. This will bring accounts closer to being compatible with many of the DeFi lending protocols, giving them a real-time edge. The end result is a product that seems to combine attractive profitability and offer the benefits of DeFi with brand-based guarantees for centralized funding.

Circle View is the latest development in the broader CeFi-Meet-DeFi trend. In August, OKEx and Bitrue announced lending platforms that will combine DeFi and CeFi features.

In a recent statement to Cointelegraph, Elitium CEO Raul Melhado said that CeFi’s adoption of DeFi features (and vice versa) will ultimately be a blessing for the end user:

“Centralized and decentralized applications can be combined to create new types of economy and encourage more people to use DeFi […] By combining DeFi and CeFi, we can make the transition from a centralized world to a decentralized one smoother and ultimately win the old one. the battle between DeFi and CeFi ”.

Source: CoinTelegraph

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