Coinbase and Circle have recently announced the launch of USDC, an Ethereum token compliant with the ERC20 standard. USDC is a location-agnostic digital dollar, providing a trusted and regulated digital payment option for users in the cryptocurrency ecosystem, offering the advantages of both a blockchain-based payment and the stability of the US dollar.
With the launch of USDC, Coinbase and Circle are committed to driving further adoption of blockchain-based payments and promoting innovation in the global financial system.
This article will explore the features and benefits of USDC.
Coinbase and Circle announce the launch of USDC — a Digital Dollar
USDC is a stablecoin co-founded by Coinbase and Circle and is built on the open source Ethereum blockchain. USDC, or the USD Coin, is a USD-backed, digital currency that can be used 1:1 as an equivalent of the US dollar. By leveraging the Ethereum network, users can use low latency for digital money transfers across borders and low transaction fees.
USDC makes transferring your dollar through digital means much easier and more efficient than traditional wire transfers. Through its partnership with approved financial institutions, USDC proxy wallets provide custodial solutions for sending and receiving funds securely at any time. Furthermore, being a fully ERC20 compliant token it integrates seamlessly into existing cryptocurrency infrastructure such as decentralised exchanges (DEXs) giving users full control of their funds at all times.
Overall USDC provides a better alternative to fiat currency by taking incumbency out of payment processing while giving its customers full custody over their funds and access to an ever expanding ecosystem of merchants, exchanges and institutional investors worldwide!
What is the ERC20 Standard?
The ERC20 standard is an Ethereum-based technical standard used for smart contracts on the Ethereum network. It provides a common set of rules and interfaces that all Ethereum tokens must abide by to be considered an ERC20 token. This ensures that all ERC20 tokens adhere to the same standards, making it easier for users, exchanges and wallets to interact with them. It also creates predictability in the market as everyone knows what each token can do.
Ethereum tokens are digital assets developed on the Ethereum blockchain, and each token covers a specific purpose or application in the ecosystem. The ERC20 standard was created to facilitate smoother development, maintenance, updating and management of these tokens.
In October 2018, Coinbase and Circle announced the launch of USDC — a regulated digital dollar on the Ethereum blockchain. USDC is fully compliant with the ERC20 standard, meaning any user can check online its source code following a rigorous process (Source: Coinbase).
Background
Coinbase, backed by Circle, recently announced the launch of USDC — a digital dollar compliant with the ERC20 standard. USDC is designed to reduce the cost of sending and receiving money worldwide. It is an important step towards making cryptocurrency more accessible and mainstream.
By leveraging the underlying Ethereum blockchain infrastructure, USDC simplifies the process of sending and receiving digital money, and can open new doors for people and businesses that may have not been able to access cryptocurrency before.
The Need for a Digital Dollar
In recent years, the digital currency industry has undergone exponential growth that pushed the development of innovative digital financial solutions. As a result, there is a growing demand for digital dollar solutions that meet the same compliance standards as traditional currencies. This need for a compliant and digitally accepted tender motivated Circle and Coinbase to create USD Coin (USDC).
USDC is an Ethereum token that is fully compliant with the ERC20 standard. It allows users to move dollars freely on-chain and off-chain while ensuring reliable price stability and reducing counterparty risk. The asset is backed 1:1 by US dollars held in accounts subject to regular public reporting of reserves. Furthermore, it enjoys regulatory supervision in the compliance exchange and blockchain protocol domains, allowing users improved peace of mind knowing their funds are being kept secure.
Simply put, by launching USDC, Circle and Coinbase have created an accessible platform for developers and businesses to unlock new opportunities in global commerce via a secure blockchain digital dollar solution. This is expected to make it even easier for people across the world to transact globally with each other in a “borderless economy” on terms that protect both parties from fraud and manipulation.
Coinbase and Circle Announce USDC
On October 23, 2018, Coinbase and Circle announced the launch of USDC — a digital dollar compliant with the ERC20 standard. The U.S. dollar-backed “stablecoin” helps bridge the gap between traditional finance and cryptocurrency by providing greater liquidity and expediting global settlement of payments across borders.
USDC is issued through an open source framework and can be used for payments, investments or to store value in digital wallets, exchanges or financial applications. The new cryptocurrency has been engineered to enable rapid and global liquidity of payments services by offering a robust infrastructure for trading US Dollars.
Coinbase’s Global Digital Assets Head Dan Romero comments, “By introducing much needed stability within the cryptocurrency space, USDC supports Coinbase’s mission to create an open financial system.” Circle also spoke positively of their new currency: “Stablecoins such as USDC are becoming a core part of the Internet of Value — helping citizens worldwide bridge traditional bank accounts with public blockchains like Ethereum.”
USDC marks a new partnership between two major players in the crypto industry – Coinbase & Circle – and will play an important role in increasing global adoption of cryptocurrencies and their general acceptance among businesses and consumers alike.
Features
Coinbase and Circle have launched USDC, a new digital dollar pegged to the US Dollar. USDC is a fully managed and collateralized digital currency developed on the Ethereum blockchain, and is fully compliant with the ERC-20 standard.
This article will focus on the various features that make USDC an attractive asset for users to invest in.
USDC is Fully Audited and Compliant with the ERC20 Standard
Coinbase and Circle have partnered to create a stablecoin, USD Coin (USDC). USDC is a 1:1 US dollar-pegged cryptocurrency token based on the Ethereum blockchain. The USDC token serves as a useful tool within the crypto ecosystem, allowing users to send and receive money anywhere in the world quickly and securely while fully complying with applicable regulations.
While there are other ERC-20 based tokens, Coinbase and Circle have gone one step further with their development of USDC. It has been fully audited by an independent third-party and complies with ERC20 standards. Additionally, Coinbase has put together a transparency dashboard to provide real-time insight into current USDC holdings, currency reserves, support documents, audit reports and more. This level of stability and oversight gives users peace of mind when using or dealing with this digital asset.
Physical US Dollars back USDC
USDC is a digital representation of the U.S. dollar, backed by a reserve of actual U.S. dollars held by the financial institutions issuing USDC tokens via Coinbase and Circle respective platforms: Coinbase Pro, Coinbase Prime and Circle Trade OTC Desk. This ensures token holders can redeem USDC for U.S. dollars on a 1:1 ratio subject to applicable laws and regulations, including anti-money laundering, counter terrorist financing (AML/CTF) and other economic sanctions requirements.
In addition to being backed by fiat currency held in reserve at a regulated financial institution with independent auditing, USDC is fully compliant with regulatory requirements as specified in the ERC20 standard – one of the most widely used token standards on Ethereum today – allowing it to stay secure while providing token users full transparency into each transaction they make or receive through these platforms.
In short, holding USDC gives users access to an Ethereum-based digital asset backed by fiat currency compliant with the ERC20 standard and its partner networks. Furthermore, as one of the leading crypto networks based out of the United States, Coinbase and Circle have stated their commitment to furthering regulatory compliance initiatives within this emerging sector and building tools that enable faster entry into this market for institutional players all over the world.
USDC is Easily Exchangeable
USDC is easily exchangeable for fiat currency in and out of digital wallets using leading stablecoin venues. The token is backed on a 1:1 basis with the U.S. dollar, with deposits held at FDIC-insured banks up to US$250,000. Coinbase and Circle represent two major companies in the crypto space that have partnered to create USDC, which has opened up an easy way for users to exchange their digital dollars into their local fiat currency.
The token has been designed to bring stability and dependability for individuals, businesses and trading platforms who need access to U.S.-based Dollars either domestically or internationally by utilising blockchain technology—making it one of the most secure, fast and reliable ways to move money electronically from one place to another without intermediary assistance.
With USDC, you will also have access to secure transactions backed by a reliable custodial system that verifies your funds from source before releasing them onto the blockchain — eliminating any worries about fraudulent activities or other malicious activities during transfers or payments.
Benefits
The USDC stablecoin, launched by Coinbase and Circle, is a dollar-backed digital asset compliant with the ERC20 standard. USDC offers numerous benefits to users, from its ability to facilitate quick and cost-effective transactions, to its support for Ethereum’s network of decentralised applications.
This article will look into the key benefits that the USDC token brings.
USDC is a Stablecoin
USDC is a type of a stablecoin, a kind of cryptocurrency backed by actual asset reserves. Because a reserve currency backs it, USDC retains its value much more stably than other cryptocurrency tokens, without the volatility of other coins. As a result, USDC’s value should remain relatively close to the 1:1 USD dollar-to-USD exchange rate.
USDC also offers additional benefits including faster transaction times and low fees. As opposed to traditional wire transfers and money transfers, USDC can be sent anywhere in the world in minutes with very low or no fees – enabling nearly instant global payments via blockchain technology.
USDC also provides users with greater security due to its digital nature and enhanced oversight through institutional partners like Coinbase and Circle who provide regulated financial services and have digital currency custodian programs for protecting user assets from theft or loss. Additionally, USDC leverages Coinbase’s extensive suite of compliance tools and fiat currency balance review processes designed to prevent fraud or manipulation activities.
USDC is Transparent and Secure
Utilising the Ethereum blockchain and its auditing capabilities, USDC provides users access to a digital asset that is transparent, secure and compliant with regulations. In addition, USDC features an open source codebase and is built on an open protocol allowing it to be adopted by any Ethereum provider.
This means users have direct access to the real-time balances in their wallets without waiting for third party validation or any types of confirmation.
Additionally, industry-leading security protocols protect USDC transactions against malicious actors, ensuring that only authenticated and authorised transactions can be executed. Further, industry leaders Coinbase and Circle have invested significant technical infrastructure into developing the USDC protocol that has produced several safety measures such as fraud detection mechanisms, customer protection through smart contracts, and advanced KYC/AML compliance screening processes. All these aspects create a trustless system where users have confidence in their digital funds.
USDC is Easily Accessible
Coinbase and Circle, two of the largest cryptocurrency exchanges, recently announced the launch of USDC — a digital version of the US dollar designated as an Ethereum token compliant with the ERC20 standard. This new form of currency offers several advantages for users, including easy access to cryptocurrency markets, low transaction fees, and full compliance with existing legal standards for digital transactions.
USDC is available on Coinbase and Circle and other leading international crypto exchanges and wallets. Also, Coinbase customers can purchase USDC directly from Coinbase’s website or mobile app with deposits from a bank account or debit card. This allows users to easily access cryptocurrency trading opportunities and benefit from competitive exchange rates. Furthermore, it eliminates third-party risks accompanying traditional payments such as PayPal or Western Union transfers.
Unlike traditional fiat currency payments which typically incur high fees when used internationally, USDC charges minimal transfer fees due to its decentralised nature. Moreover, because it is created by regulations imposed by the U.S Commodity Futures Trading Commission (CFTC), customers can rest assured that their funds are fully protected and compliant with applicable laws when using USDC tokens on any exchange or wallet service both inside and outside America. As a regulated Ethereum token that complies fully with all ERC20 standards and relevant laws, USDC can easily convert digitally into different forms without additional costs or time delays. All transactions are safe and secure for individuals and businesses alike.
tags = Coinbase, USDC stablecoin, Circle, Digital Dollar, Coinbase iOS and Android apps, coinbase usdc usd circle usdclightbloomberg, Ethereum blockchain, blockchain-based digital dollar
