Crypto firm Circle Releases USD Backed Stablecoin

Circle, which is a peer-to-peer technology payment company, announced the release of its new stablecoin that will be backed by the USD. The coin will begin trading on Circle’s Poloniex exchange, which will be followed by other exchanges, as well.

27 September 2018 – On September 26, Circle informed the public about its release of the new stablecoin USD Coin (USDC). The coin is expected to begin trading on Circle’s Poloniex exchange. The new stablecoin will be fully collateralized by USD at a 1:1 ratio. 

Circle Introduces USD Backed Stablecoin

The stablecoin market has been especially active in the past month, with a number of projects joining the sector recently. Circle’s announcement highlights that the firm has more than 30 supporting companies that are ready to begin offering reading and support for the new stablecoin.

Exchanges that have agreed to introduce trading in the new stablecoin include OKCoin, KuCoin, Digifinex, Coinplug, XDAEX, and CoinEx. Moreover, a number of prominent wallet providers expressed their willingness to support USDC in the near future.

Circle’s project commenced approximately four months ago. That time, the company announced that it had managed to raise a $110 million funding round. The capital has been used partially for the launch of the stablecoin and its development.

Circle is backed by Goldman Sachs, one of the US banking giants, as its successful funding initiative has been led by Bitmain Technologies, one of the largest Chinese crypto mining companies. Goldman’s support and the massive fundraising round have reportedly contributed to the project’s success. 

Circle’s Conversion Platform Provides New Opportunities

Now, traders are able to convert USD to USDC with a click of their mouse by using Circle’s conversion platform. Funds are held with Circle’s banking partners. The USDC coins follow the ERC-20 standard. The company also notes that there will no fee for tokenizing USD, yet, there will be a .1% fee charged when USDC is converted back to fiat. 

By building USDC using the ERC-20 standard, Circle made it quite straightforward for exchanges and wallet providers to add support for the new stablecoin. 

In order to ensure that USDC retains its 1:1 peg, Circle led the creation of CENTRE, which is a consortium with a number of other market participants that is designed to monitor and regulate the issuance of USDC.

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