What is USD Coin?
USDCoin (USDC) is a US dollar-pegged stablecoin that was developed by Circle and Centre. Individuals and institutions can enroll in the USDCoin service to deposit US dollars from bank accounts, convert their dollars into a cryptocurrency token that is usable anywhere reached by the internet (though subject to the token’s compliance controls), and redeem their USDC tokens as cash outs to their bank account. USDC is an ERC20 token, meaning it enjoys the speed and security of the Ethereum Network, as well as its tremendous popularity and user base.
Below is a video from Dec. 7, 2018 – which was produced by Coinbase to explain what a stablecoin is – and the benefits of USDC. We’re posting this video to help anyone who isn’t already familiar with stablecoins or USDC.
History of USD Coin
USDC, introduced by Centre and Circle was initially sponsored by Coinbase, and is currently the fastest growing stablecoin ever to be released, thanks to the large size and prominence of its corporate backers. Circle, which opened 5 years ago, is a company based on bringing cryptocurrency to mainstream finances, and part of this process was the introduction of tokenized fiat currency, which is manifested in USDCoin. It has partnerships with a number of recognized crypto institutions and exchanges, such as OKEx, Ledger, Kyber, Trust Wallet and DigiFinex. Launched in October 2018, USDC is the fastest growing stablecoin to ever be released, surpassing the $100 million market cap within 3 weeks after its launch.
How USD Coin Works
USDC is the latest of stablecoins to be released as a result of Tether scaling back operations and thereby adding room for competition. Unlike Tether, USDCoin goes to great lengths to be transparent and demonstrate proper management of the funds which back it. USDC is backed by dollars at a 1 to 1 ration, and reserves are kept by regulated and licensed financial institutions that are required to regularly report USD reserve holdings and undergo audits, also making such information available upon request. Anybody can readily cash in and out of USDC, which can be used to purchase any number of cryptocurrencies.
Why Should I Buy USD Coin?
As a stablecoin, USDC offers several advantages to its competitors, including:
Institutional backing. USDCoin was conceived and is managed by top-tier cryptocurrency corporations with combined decades of experience in the industry. It has the support of several large financial institutions and is considered to be highly trustworthy.
Readily auditable. USDC makes the results of its audits available to the public, meaning they can be inspected by anybody at any time.
Ethereum based. As an ERC20 compliant token, USDC enjoys the stability, speed and security of the Ethereum blockchain, as well as its tremendous popularity, making it easy to exchange for any other ERC20 token and quite a number of other cryptocurrencies as well.
Fully licensed. Under Circle, which is licensed to handle electronic money, USDC also undergoes regular auditing for Anti Money Laundering (AML) and compliance programs that meet the standards of major financial institutions. It is therefore supported by a number of banks who readily accept fiat withdrawals and deposits for the purposes of transacting USDC.
Widely integrated. As the second biggest stablecoin in terms of market capitalization, USDC is already listed on 10 different cryptocurrency exchanges, only a month after launch.