Circle has introduced a new API that allows USDC stablecoins to be converted into USD through an automated clearinghouse. This solution will become a "bridge" between banks and the DeFi industry.
January 27, 2021 | AtoZ Markets – USDC issuer Circle has added the ability to auto-convert stablecoin to the US dollar. The company announced this on its official website.
With the help of an automated clearing system, businesses will be able to automatically convert payments from USDC to USD and vice versa. You can connect a new function through the API from Circle.
The function is expected to be suitable for those who do not want to process card payments due to high fees.
Circle's API will also accelerate USDC transactions
The first to introduce the new functionality from Circle was FTX cryptocurrency exchange. FTX founder Sam Bankman-Fried says Circle's API will also accelerate USDC transactions between Ethereum and Solana blockchains.
For a seamless conversion to physical money, Circle has also partnered with fintech startup Plaid.
“The process prevents errors such as mis-entering bank accounts ... and improves security for users,” comments the Circle partnership.
With Plaid, users will be able to directly connect to their bank accounts to convert dollars to USDC and vice versa.
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Digitalization of services
Jeremy Aller, CEO of Circle, has previously announced the inevitable rise in the popularity of payments in stablecoins. Then Aller expressed the hope that in the face of global turmoil and the collapse of markets, interest in digital dollars could grow significantly.
The popularity of such currencies is already confirmed by the growth in market capitalization. In 2020, USDC's market capitalization soared 655% from $518 million to $3.9 billion.
However, stablecoins are popular for more than just payments for goods or buying cryptocurrencies. As Coinbase found out, stablecoin is increasingly being used as a tool for venture capital investment in startups.
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