Goldman Sachs-Backed Circle Launches Stablecoin USD Coin (USDC)
Goldman Sachs-backed cryptocurrency company Circle Internet Financial Ltd. has launched its U.S. Dollar-backed stablecoin, four months after announcing the project.
Goldman Sachs-backed cryptocurrency company Circle Internet Financial Ltd. (“Circle”) has launched its U.S. Dollar-backed stablecoin, four months after announcing the project.
USD Coin developed with help from CENTRE
In a blog post written September 26 by co-founders Sean Neville and Jeremy Allaire, the duo revealed that the stablecoin was developed with help from their affiliate consortium CENTRE.
The USD Coin (USDC) serves as a means of tokenizing the U.S. Dollar, serving as an easy intermediary for the cryptocurrency community to transfer value onto public blockchains.
The team further announced that the stablecoin has been made available on its cryptocurrency exchange Poloniex, and Circle trade, with progress now being made to ensure that the stablecoin is listed on other exchanges.
Amongst the cryptocurrency exchanges that have already declared an interest in trading the USDC coin include:
- Coinbase Wallet
This latest development comes after the team announced in May that it has raised $110 million which would be used in developing a stablecoin.
Poloniex and Circle Trade can now be used by both individuals and institutions to deposit US Dollars and swap them for the USDC coin.
The team claims Circle’s banking partners will be holding the equivalent USDC coin in reserve, thus ensuring that each USDC coin is backed by U.S Dollars.
CENTRE serves as a watchdog for USDC
The team further announced that the stablecoin is ERC20 compliant, which means that it can be cashed back to bank accounts. Circle further added that the token can be bought without any fees, with a 0.1% fee to redeem USDC tokens for dollars.
Circle created its affiliate consortium, CENTRE which has been tasked with defining standards for fiat stablecoins.
Jeremy Allaire stated that the organization was created to provide a consortia-based governance scheme for fiat on the internet. While the consortium is currently entirely owned by Circle, there are plans in place to turn it into an independent organization.
This led to CENTRE coming up with criteria for commercial users of the USDC stablecoin, including fulfilling the requirement for licensing, compliance, and proof of reserves.
Allaire believes that the USDC coin is a unique stablecoin due to its open-source roots, and he is confident that the token will have broad industry support thanks to its open standards and ease of implementation.
Circle revealed that professional services firm Grant Thornton has been tasked with assisting the management in verifying Circle’s U.S. dollar reserves.
Circle joins Gemini, Paxos in stablecoin community
Stablecoins have become a focus of attention for the cryptocurrency community, with Gemini and Paxos recently launching their stablecoins after getting approval from regulators in New York.
Andreessen Horowitz’s crypto fund also announced recently that it has invested $15 million in the MakerDAO stablecoin project, as more companies look to challenge Tether’s status as the leading stablecoin.