USD Coin

USDC is a fiat-collateralized stablecoin on the Ethereum blockchain that is pegged to the US Dollar.

What is a USD Coin? 

  • USD Coin (known by its ticker USDC) is a stablecoin that is pegged to the U.S. dollar on a 1:1 basis. Every unit of this cryptocurrency in circulation is backed up by $1 that is held in reserve, in a mix of cash and short-term U.S. Treasury bonds. The Centre consortium, which is behind this asset, says USDC is issued by regulated financial institutions.
  • USDC transparency on its reserves is reliable and the monthly attestations can be found on the Circle’s website.
  • The stablecoin originally launched on a limited basis in September 2018. Put simply, USD Coin’s mantra is “digital money for the digital age” — and the stablecoin is designed for a world where cashless transactions are becoming more common.
  • All of the USDCs in circulation are actually ERC-20 tokens, which can be found on the Ethereum blockchain. One of the biggest advantages here is how it can then be integrated with Ethereum-based applications. As we mentioned earlier, security and confidence in this stablecoin are delivered by proving that U.S. dollars are being held safely in reserve.

Key Metrics

TickerUSDC
Token NameUSD Coin
Token Type/ProtocolERC-20
Total Token SupplyUnlimited supply
Current Circulating Supply See Coinmarketcap
Market CapitalisationSee Coinmarketcap
Token Creation DateSeptember 2018
Can it be mined?Yes

Who is behind the USD Coin?

USDC is a joint venture project by Circle, a blockchain payments technology company, and Coinbase, a renowned exchange in the United States.

Circle was founded in 2014 by Jeremy and Sean while Coinbase was founded in 2012 by Brian and Fred.

What is the purpose of a USD Coin?

The goal is to create an ecosystem where USDC is accepted by as many wallets, exchanges, service providers and dApps as possible. As well as providing a safe haven for crypto traders in times of volatility.

Insights:

  • USDC supports Ethereum (ERC-20), Algorand (ASA), and Solana (SPL) where the smart contract is integrated into the application of these three blockchains.
  • The rapid growth of USDC due to the public nature of smart contracts has grabbed many companies’ attention. USDC is used in several aspects such as digital wallet, exchange, DeFi protocols, saving, lending and payment services.

Risks:

  • The volatility between the paired currency i.e., between USD and THB.
  • The credibility of the token depends on token issuer protocols such as fiat collateral management policy.
  • The USDCv price mechanism can get affected by pegging with fiat currency, which is a centralized system and can be intervened or controlled by the government.

News and Updates:

  • Visa, the world’s leading payment card network processor, partners with Circle, a USDC issuer, to facilitate credit card holders by supporting payments via USDC and other stablecoin.
  • Floating Point Group, one of the crypto brokers, has added support for stablecoin such as USDC on Algorand (USDCa) for client company’s fund transfer.
  • A partnership between Finclusive, a hybrid regulatory and financial company, and Stellar, an open-source network for currencies and payments is announced, using the Stellar network, Finclusive provides USDC payment to businesses and banks.

Community & Whitepaper Links:

Disclaimer : 

All investment is speculative and involves substantial risk and uncertainty. Investors should understand the nature of digital assets including the terms of return and the risk of assets. We encourage investors to fully understand the assets and the risk associated with them prior to making any investment.  

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