Digital asset exchange, Coinbase, informed the public about its support for USD Coin (USDC). This trading will be made possible on both Coinbase Pro and Coinbase Consumer with 85 countries. The announcement was made on Twitter.
The USDC Coin was launched in September, 2018 by Goldman Sachs funded FinTech startup, Circle Internet Financial (also known as Circle).
The FinTech startup is a regulated, fully-collateralized stablecoin that was initially launched on May 16th, 2018. USDC is based on an open source fiat stablecoin framework developed and governed by the CENTRE project.
According to Circle, the existing fiat-backed stablecoins like Tether etc have several problems. Most of them majorly lacked financial and operational transparency, they also operated in unregulated jurisdictions with unknown banking and audit partners, and were built as closed-loop ecosystems and closed proprietary technologies.
On the other hand, Circle’s USDC stablecoin dealt with most of these issues. It provides detailed financial and operational transparency, operates within the regulated framework of US money transmission laws and is reinforced by established banking partners and auditors. USDC tokens are also ERC-20 compatible. Therefore, they can run on the Ethereum blockchain. They are minted, issued, and redeemed based on network rules defined by CENTRE.
Global expansion plans
In October 2018, Circle announced that Coinbase will be making USDC available to its customers on Coinbase Consumer and Coinbase Pro. It added that customers could tokenize dollars into USDC and redeem USDC into dollars through both Circle and Coinbase.
In a post titled “Expanding USDC crypto trading globally”, Coinbase explained that it will be making USDC trading available to help accelerate the global adoption of crypto trading. It will also provide wider access to a stable store of value.