Cryptocurrency Usd-coin USDC Blockchain, Crypto and Stock News

USDC is issued and governed by the CENTRE consortium, who provide a regulatory and operational framework and oversee the USDC stablecoin. All USDC issuers must report their USD holdings, which are in turn published by accountancy firm Grant Thornton LLP on a monthly basis. These monthly reports are available online to anyone who wishes to view them. USD Coin was made by the tech company Circle and is currently managed by a consortium called Center. The project is backed by Coinbase, which also supports its purchase, and Bitmain. The USD Coin has since climbed up the ranks of stablecoins and is now considered a viable alternative to the controversial USDT coin. With the Fed raising rates, stablecoins could become less attractive.

The easiest way to buy USDC is by placing an ‘instant buy’ order to purchase it for a fixed price but not all crypto exchanges offer this feature. BC Bitcoin is a cryptocurrency brokerage that buys and sells more than 100 different cryptocurrencies. Buy cryptocurrency for pound sterling or 35+ other fiat currencies with convenience. Meanwhile, USDT is the largest stablecoin in terms of market cap. Both USDC and USDT together make up 80% of total market share.

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Stablecoin yields are no longer high compared with yields in traditional markets such as dollar currency pegs and money markets. “Binance What is USD Coin Labs invested in hundreds of projects over the last 4 years, including exchange ‘competitors’ and many ‘competing’ blockchains.

Stablecoins have been created to overcome the price volatility of crypto currencies such as Bitcoin or Tether, which stems from the fact that there is no robust mechanism to determine their real-world value. Given high levels of distrust in those cryptocurrencies, investors tend to resort to safer options like stablecoins. These may leverage the benefits of cryptocurrencies and blockchain without losing the guarantees of trust and stability that come with using fiat currencies. USD Coin is a stablecoin pegged on the US dollar, one of the USD backed cryptocurrencies like Tether and TrueUSD. It was launched in September 2018 by fintech company Circle and crypto exchange Coinbase. USDC tokenizes the US dollar, enabling users to complete transactions on the internet anywhere in the world. Bringing the US dollars on the blockchain network also increases the dollar’s stability and brings new opportunities such as hedging, lending, and trading.

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In December last 2020, just before the end of the US Congress tenure, a draft of the Stablecoin and Bank Licensing Enforcement Act was introduced. The law would approve the use of stablecoins and cryptocurrencies as legitimate alternatives to other real-time payment systems. This Act however proposed significant increases in the regulatory oversight of stablecoins.

• This is especially relevant in the decentralized finance segment, where stablecoins play an important role to enable the ecosystem.
• For example, if you’re holding ETH and the price starts to fall, rather than selling your ETH and taking a loss, you could change some of it into USDC.
• It is also interesting to note that USDC has already surpassed USDT in terms of “real volume” on top of the Ethereum blockchain.
• The basic mechanism is creating a new coin, setting a peg, and then monitoring the price on the exchange.

Volkswagen is offering shares to retail investors in Germany, Switzerland, Austria, Italy, Spain and France in a process run by Deutsche Bank. The crypto exchange says the auto-conversion feature is for liquidity and capital efficiency. The exchange will also remove USDC trading pairs from the platform starting 26 September.

What is USD coin (USDC)?

USD Coin is issued by U.S. firm Circle and is the world’s second-largest stablecoin, with a market capitalisation of $51.8 billion, according to crypto data provider CoinGecko. Binance’s stablecoin is valued at about $19.4 billion, according to CoinGecko. Binance said it will stop trading on spot pairs which include USD Coin, Pax Dollar and True USD, although users will still be able to withdraw funds in the form of these stablecoins.

This competition could lead to lower demand for USDC and a corresponding decrease in its price. By being compatible with several autonomous blockchains, USDC can be used to integrate payment systems and applications seamlessly. This benefit allows for the quick and effortless transfer of value between different blockchain platforms without converting to another currency. Therefore, it makes it an ideal way for businesses that operate in multiple jurisdictions or use various blockchains. For instance, a company that uses Ethereum to run its smart contracts but also needs to make payments in Bitcoin could use USDC to convert ETH to BTC. USDC can be used to represent equity or other assets that are denominated in U.S. dollars but whose prices fluctuate.

Tether vs. Bitcoin

Also, the Federal Deposit Insurance Commission has insured USD Coin accounts, which goes a long way to allay user fears about its service. There is not a uniform regulatory approach of regulators worldwide relating to stablecoins. Calls for the harmonization of legal and regulatory frameworks include areas such as governing data use and sharing, competition policy, consumer protection, digital identity and other important policy issues. Also further collateral consequences, particularly because the recent rise in crypto prices, has been fuelled in significant part by debt.

The Terra stablecoin is supposed to match the value of the US dollar – but its value has crashed. John Stepek explains what it means for you and your investments. First, the user requests the issuer to exchange the USD coins into dollars. Stablecoins like Tether don’t make much sense as an investment because they aren’t meant to increase in value. They only operate as a store of value, since one USDT should always equal one dollar. Tether is a centralised crypto, whereas Bitcoin is decentralised by not being linked to any real-world currencies. For that reason, in theory, Tether’s value should remain more stable than Bitcoin’s.

The UK’s most trusted exchange

Though the UK is well behind with its regulatory activities around stablecoins compared to the EU, regulators in the UK are now also speeding up their steps to regulate stablecoins. Earlier this year the UK HM Treasury issued a general consultation and a call for evidence on crypto assets and stablecoins generally. The UK’s proposals however are narrower than the UK MICA proposals, reflecting an intention to take a ‘staged and proportionate approach’. In particular, the UK proposes to regulate only ‘stable tokens used as a means of payment’ initially. These issues underline there is a large regulation gap concerning stablecoins that contributes to weak investor protection and fraudulent activities. There is no legal framework for regulating stable coins, so no requirements on how reserves must be invested, nor any requirements for audits or reporting.

It was released in September 2018 and is an ERC-20 token that allows making payments, lending, investing, and trading. These aim to be https://www.tokenexus.com/ fully collateralised with fiat currency or other assets. The typical collateral includes dollar cash, treasuries and commercial paper.

Author: Annie Nova