What is USD Coin (USDC)?
USD Coin is a cryptocurrency, which is a digital-analog of the US dollar.
It belongs to the so-called stablecoin, coins, whose rate depends on the solid currency. USD Coin is a classic representative of stablecoins. The main difference between these coins – their oscillations do not depend on changes in the course of another cryptocurrency. In particular, they are not associated with Bitcoin and Bitcoin mining.
Another advantages of USD Coin
USD COIN cryptocurrency is a Circle Financial and Coinbase cryptocurrency exchange. The development of the Center Consortium was engaged in the development.
USD Coin cryptocurrency offers an open-source code, a transparent ecosystem, and a complete binding to the US dollar. The main difference is that all operations for the release of tokens meet the banking standards, the laws of the United States, and the rules of regulators. At the same time, the Center has all the necessary licenses for banking operations and adheres to combating money laundering policies. For this, the company’s customers are obliged to go through a verification procedure.
Another important advantage of the USD Coin cryptocurrency in front of the rest is a partnership with really serious companies. For example, the manufacturer of ASIC-miners Bitmain, the Goldman Sachs Group investment bank, the Baidu search engine, and the leader in the venture investment market IDG Capital.
USDC is a fully secured stable coin, built as an ETHEREUM ERC-20 token. For each USDC in circulation, there is a US dollar blocked on a conditional deposit account. It saves the USDC value of 1 dollar, as there is no risk of volatility. Although the founders of the USDC directly do not speak about it, they clearly created a stable coin in response to opaque Tether’s transactions: “There are not enough financial and operational transparency with existing approaches, they worked in unregulated offshore jurisdictions with unknown banking partners and audit and were built as ecosystems with closed output and technology with a closed source code.”
- Native ERC20 USDC is calculated exclusively and is used in the Ethereum blockchain. As a result, any can check the revolutions and control transactions.
- Liquidity – USDC is the second most liquid STABLECOIN for USDT and traded on most of the largest stock exchanges.
- Monthly audit that is regularly conducted by Grant Thornton accounting firm to ensure that USDC is provided with 1: 1 US dollars in bank accounts. Circle, Ltd. often publishes these reports.
- Adjustable and complies with the requirements – Circle, Ltd. NYDFS is fully regulated and licensed (by the New York Financial Services Department) for business in the United States. NYDFS is the most stringent financial regulator of the country.
- Strong institutional support – Circle, Ltd. has received several rounds of venture capital and extremely well funded for further development.