What Is USD Coin (USDC)?

Since the wave of stablecoins launched there has been much interest in USD Coin. In this article, we’re going to introduce you to the popular stablecoin option, and look into the project as a whole. Stablecoins are pegged to fiat currencies to offer the often-volatile crypto market some stability. They’re still digital currencies, however, their value remains consistent to the fiat (or commodity) that they are pegged to, in a predetermined ratio.

Similar to Tether (USDT) and True USD (TUSD), USD Coin is a stablecoin pegged to the US dollar. The value of one USDC will always be $1, determined by the 1:1 ratio with which it was designed. Merging the stability of the US dollar and the speed of digital currencies, USD Coin offers both the crypto and finance world an impressive alternative to lengthy and costly fiat transactions.

Following an investigation into Tether and their alleged “1:1” backing, a number of US-backed stablecoins entered the market providing more transparent funding and auditing processes. While US-back stablecoins are typically quite similar, USD Coin has a few advantages over its competitors.

For one, its parent company is registered as a Money Services Business and is regulated by the United States Financial Crimes Enforcement Network (FinCEN). The company is also audited by one of the top 10 accounting firms in the world, Grant Thornton, and has a reputation for being both transparent and squeaky clean.

Initially created as an ERC-20 token, the project has since partnered with the likes of Algorand (September 2020), Stellar and Solano (October 2020). The coin is now available as an Ethereum ERC-20 token, Algorand ASA, and Solana SPL tokens. USDT has also recently become a firm staple in the decentralized finance (DeFi) industry.

USD Coin History

The project launched in September 2018 through a collaboration by Circle and the crypto exchange, Coinbase. Circle is a finance company launched in 2013 that has since moved into crypto space, with backing from high-profile companies and even acquiring the crypto exchange Poloniex.

Just four months after launching, USDC was ranked as the top 5 biggest cryptocurrencies based on market cap.

What Can You Do With USD Coin?

As with any cryptocurrency, USD Coin can be traded on top exchanges around the world, including Oobit. The coin can also be used for trading in the DeFi industry on a wide variety of protocols. USDC can even be used to earn interest through the loans company, BlockFi, which allows users to earn interest on all USDC deposits.

The coin offers a stable market when the cryptocurrency markets become volatile or enter a downtrend. Traders often use stablecoins as a hedge against falling crypto prices without removing their money from the market completely.

Individuals and businesses also might like to use USDC as a faster and cheaper alternative to sending US dollars across borders, bypassing banks and instead tapping into the beneficial world of cryptocurrency payments.

USDC And Regulations

Stablecoins are pioneering the way forward for the cryptocurrency industry as a whole. In January 2021, the largest US banking regulator, the US Treasury OCC, announced that US banks were now allowed to use “dollar stablecoins as a settlement infrastructure in the US financial system.”

Spearheading the way through two major aspects holding back the worldwide adoption of cryptocurrencies, lack of regulation and volatility, stablecoins are a welcome and well-established asset type. Offering a more attractive international payment option to small and large institutions alike, stablecoins are likely to propel the industry into the mainstream.

How To Buy USD Coin (USDC)

Traders looking to tap into the USD Coin market can do so through Oobit, offering users the chance to use cryptocurrencies with the same ease as traditional money. Users can access over 150 different cryptocurrency markets with convenient payment options like credit and debit cards, bank transfers and Google Pay and Apple Pay. All you need to do is create an account to start buying, selling, trading and swapping USDC and so many more.

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