Circle announced on Thursday that it would be shut down its Circle Pay mobile app.
In a post released on its blog, the organization announced a wind-down that would occur in several phases and it would be completely wrapped up on the 30th of September this year, when the left over funds will be handed over to states or nations, in line with local laws.
From the 8th of July, only withdrawals will be permitted on the app.
The Organisation says the 5 year-old product experienced demand, but that stablecoins have been seen to be a better product.
Josh Hawkins, Circle spokesman told CoinDesk via email correspondence:
“Circle Pay is a popular social payment app that has seen significant organic growth over the years across the U.S. and Europe. But now that we have USD Coin and an open, interoperable stablecoin standard through CENTRE, it makes sense to sunset our first-generation effort and transition full focus to wallet services that take a bigger step toward reaching our original vision for a free, open and transparent global payments network.”
The surprising news broke on the same day that CENTRE, the consortium established by Coinbase and Circle to advance USDC, started opening itself to new customers.
Circle was established in 2013 with the aim of making payments using crypto as easy as using mobile apps like Venmo. In the middle of 2015, it became the first firm to get New York’s BitLicense.
In 2014, the firm launched a bitcoin wallet that’d eventually lay the foundation for what evolved into Circle Pay.
When the mobile app first incorporated fiat payments, Jeremy Allaire, the CEO told Wired in 2015:
“If I say I believe in the bitcoin movement and I want to hold bitcoin instead of dollars, but a friend doesn’t necessarily care about bitcoin … Circle will convert any money that friend sends me to bitcoin.”
Circle made withdrawals with ease to debit cards for free from the Pay app in 2017.
The firm has announced downsizing measures in the past few months, in May alone, they had to lay off 30 staffs.