Goldman Sachs Backed Circle Launches its Dollar Backed Stable Coin (USDC)

Circle, the Fintech company backed by Goldman Sachs is launching a US Dollar backed stable coin called USD Coin (USDC) built on the ERC 20 standard of the Ethereum Blockchain.

Many companies have come together to form a consortium called CENTRE which will be the go-to platform for users to deposit Fiat money from their bank accounts and convert it into tokens and convert it back to Fiat money.

USDC will be listed on DigiFinex, CoinEx, Poloniex, KuCoin, OKCoin, Coinplug and XDAEX for trading soon. It will also be available on Decentralized exchanges IDEX, Paradex, Radar Relay and Tokenlon for .trading.

Wallets such as BitGo, Cobo, Coinbase Wallet, CoolWallet S, Elph, imToken, Ledger, Status, Trust will be providing native support to USDC. Circle claims that many more companies will be supporting USDC eventually.

Jeremy Allaire, CEO of Circle told Bloomberg:

Market infrastructure like stable coins will become the base layer that supports every financial application, It has to be legitimate, trustworthy, built on open standards. We are solving a lot of these fundamental problems that exist. That’s a huge difference from something like Tether, and we think the market will very quickly gravitate to that.”

Tether has been by far the biggest stable coin with a market cap over $2.8 Billion but has been controversial because of its lack of transparency. Although various reports have stated that the Tether token is backed by enough Fiat, some of the investors find it risky which is where Circle comes in trying to fill the market need and become a trustworthy standard for investors to enter the market.

Blockmanity’s Take

This year has truly been a golden time for BUIDLing. There has been a wave of interest in Stablecoins as it the gateway into the world of Crypto assets. Recently companies like Gemini, Paxos launched their native regulated stablecoins. Maker Dao which is a Crypto collateralized stable coin received funding of $15 Million from one of the most reputed VC’s A16Z.

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