Circle establishes a foundation: using equity for charity, specifically helping small businesses overlooked by TradFi.

On December 2nd, news came that Circle has done something quite interesting - they established a dedicated foundation.

This foundation is not to be taken lightly. Its initial funding comes from Circle's commitment to the “Pledge 1%” equity, which has gathered thousands of companies around the world willing to contribute a portion of their equity and resources to do something meaningful. The foundation's goal is clear: to make the financial system more resilient and inclusive. Whether it is within the United States or on a global scale, it is all part of their plan.

How exactly to do it? They will support those organizations that are genuinely helping ordinary people—such as groups that support small businesses in American communities, as well as international agencies that aim to modernize humanitarian aid.

In the first phase, the focus was on small businesses in the United States. Why? The data is here: small businesses employ nearly half of the private sector workforce in the U.S. and account for over 40% of GDP. But the reality is that many small business owners simply cannot obtain reasonable loans, lack digital tools, not to mention finding the capital needed for growth.

The foundation's approach is to collaborate with organizations called CDFIs—Community Development Financial Institutions, which specifically fill the gaps left by traditional finance. They do not spread their funding thin; instead, they invest only in those CDFIs that focus on results, have solid technology, and are willing to share data and experiences. This way, every penny can help more people.