USDC is a stablecoin pegged to the US dollar and is backed by Goldman Sachs. Like other stablecoins, USDC is also ERC20 compliant. The initial capital in May by Bitmain, China cryptocurrency company raised a total of $110 million for the project.
The coin, USDC will be available for immediate use on Poloniex exchange. Soon will also be available to more 30 exchanges like DigiFinex, CoinEx, KuCoin, and OKCoin. Wallets like BitGo, Cobo, Coinbase Wallet and imToken.
The circle is not restricting Centre (the creator of protocol for USDC) for the creation of USDC. Although Centre is an entire owner subsidiary of Circle.
According to the announcement,
“While Circle may be the first USDC issuer, we will certainly not be the last. Leveraging $20m in funding raised last year, CENTRE is launching its broader membership framework which includes other established financial technology firms as additional issuers.”
The launch of USDC stablecoin follows the launch of other stablecoins like Gemini and Paxos. They also got an approval from the state of New York.
The center is liable to regulate the USDC issuers for complying with AML standards and possess state licenses to handle e-money. It will also have banking partners to hold dollar reserves. They will ensure right allowing authenticate public auditors to a monthly review of partners’ reserves, Circle notes
Circle’s Jeremy Allaire (CEO) says that USDC has “huge difference” in comparison with Tether and adds, “Market infrastructure like stablecoins will become the base layer that supports every financial application. It has to be legitimate, trustworthy, built on open standards. We are solving a lot of these fundamental problems that exist. That’s a huge difference from something like Tether, and we think the market will very quickly gravitate to that.”
Reportedly, Circle will charge a 0.1 percent fee to redeem USDC tokens to dollars and the vice versa is free. Circle further confirms that USDC is the first among the various stablecoins it has plans to release.
Do you think it’s a good decision to launch a stablecoin amongst the controversies around them? Let’s discuss.
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