Goldman Sachs backed Circle launches stablecoin
Crypto finance company, Circle has launched a new stablecoin pegged to the US dollar. The stablecoin called USD Coin [USDC] will be available for immediate trading on Circle’s Poloniex exchange and Circle Trade. It can soon be traded on other partner exchanges including DigiFinex, CoinEx, KuCoin, and OKCoin. Also, more than 30 partners that have declared their support for USDC, according to a Forbes report.
Circle’s Poloniex exchange will allow individuals and institutions to deposit US Dollars from bank accounts and convert them to USDC. The equivalent US Dollar reserve will be kept by the company’s banking partners. The ERC 20 token can be converted to fiat and transferred to bank accounts. Conversion of USD to USDC is free while the exchange will charge 0.1% for the conversion of USDC to USD.
The company has established a consortium that will set the standards for fiat stablecoins called CENTRE. The consortium will be based on the technology that is being used by Circle Pay, the company’s mobile payment platform. CENTRE has already put in place a set of criteria for the commercial buyers of USDC tokens. The criteria include conditions for licensing, compliance and proof of reserves. According to Circle CEO, Jeremy Allaire Circle’s mission is to implement “a consortia-based governance scheme for fiat on the internet.”
Allaire said that the USDC token stands apart from other stablecoins available on the market because of its open-source roots. “It’s going to have broad industry support right out of the gate. Because it’s built on an open standard, anyone can implement it,” he explained.
The most popular stablecoin on the market at the moment is Tether, the stablecoin pegged to US dollar. Tether, the eighth largest coin by market cap has been in the middle of a huge controversy in the recent past but has been performing well in the market, bracing itself amid a number of bear storms that swept the crypto market. However, Tether is facing strong rivalry as more stablecoins are being launched. Since Circle is backed by Goldman Sachs USDC has all the chances of gaining wide popularity among the crypto community.
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