Circle established a charitable foundation to support financing for small businesses through equity commitments.

[Coin World] Circle recently made a big move - it established a dedicated foundation aimed at making the financial system more resilient and inclusive.

The origin of this matter is quite interesting. Circle participated in a global initiative called “Pledge 1%”, which simply means that tech companies commit to donating a portion of their equity for charitable purposes. Now, thousands of companies around the world have joined this effort, and Circle has fulfilled its promise through practical actions.

What does the foundation want to do? The first phase is focused on small businesses in the United States. The data is very clear: these small businesses employ nearly half of the private sector workforce and generate over 40% of GDP, but many business owners are still struggling with issues like not being able to secure loans, not being able to use digital tools, and not being able to obtain funding for development.

Their approach is quite clever—they don't just throw money around, but instead collaborate with institutions called CDFIs (Community Development Financial Institutions, which specifically fill the gaps that traditional banks are unwilling to touch). The foundation will prioritize supporting those CDFIs that focus on results, are technologically advanced, and are willing to share data and experiences. This method can maximize the impact of every dollar, as these institutions disseminate best practices throughout the network.

It's interesting that Circle has pivoted from a cryptocurrency payment company to financial inclusion.