Circle Builds $1 Billion Cash Buffer While Market Share Erodes

Circle Internet Financial is counting on a more than $1 billion cash cushion to help weather fresh competition from non-crypto companies such as PayPal Holdings Inc. while it seeks to stem a deepening decline in the market share of the second-largest stablecoin.

The amount of Circle’s USD Coin in circulation has plunged to about $26 billion from $45 billion at the beginning of the year. Tether, the biggest stablecoin, has grown during the same period. The decline is being partly driven by a decision about a year ago by the world’s biggest crypto exchange, Binance, to pull back from using ...