The stablecoin usually becomes stable through a process of collateralisation. This means coins have a reserve fund ensuring that every stablecoin is backed by an equivalent amount of the pegged asset. So, if there are two million units of a stablecoin pegged to the dollar in circulation, there should be $2m sitting in a bank account somewhere to back up the stablecoin. Department of Treasury, USDC is managed by a consortium called Centre.

In fact, due to their relative stability compared with traditional cryptocurrencies such as Bitcoin, many believe stablecoins are likely to play a significant role in mainstream cryptocurrency adoption. USDC is a tokenized version of the US dollar, meaning it can be exchanged for the equivalent amount of US dollars at any time. Every USDC in circulation is 100% backed by one U.S. dollar which is held in segregated accounts with US-regulated financial institutions. It is also widely accepted as a payment method and can be used to earn rewards.

Tesco head’s £4.4mln pay packet must be music to former BT chair’s ears

For example, a user would always be able to redeem one stablecoin for one dollar, making it easier to monitor than the value of bitcoin, for example, which can change significantly on a daily basis. We love OKX because it’s an adaptable and flexible exchange, with an app that’s available in three different versions depending on how you trade. Choose from the beginner-friendly Lite https://www.tokenexus.com/what-is-usd-coin-usdc/ version, Web3 option for NFT traders, or the Pro version for a plethora of trading tools. The Binance app is designed to appeal to everyone, regardless of your experience. The ‘Lite’ version slims everything down to the basics, while the regular app is one of the most advanced crypto trading platforms out there. Bitstamp is the simplest crypto exchange to get started with.

One prominent risk of USDC is the possibility of your wallets prone to hacking. Another popular factor of USDC is its redeemable factor, as it can be exchanged with USD. According to market analytics, USDC has a market capitalization of $20 billion.

Search and buy airlines tickets with USDC

Due to the potential volatility of the cryptoasset markets, the value of your investments may fall significantly and lead to total loss. Cryptoassets are complex and are unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. USD Coin was launched in September 2018 and was developed by Centre Consortium, a joint venture by peer-to-peer payment services company Circle and cryptocurrency exchange Coinbase. The goal of the founders was to create an ecosystem in which USDC is accepted by as many wallets, exchanges and service providers as possible.

• Add funds via a card payment, bank transfer or an alternative payment method.
• Investing in cryptocurrency comes with risk.Upon purchase of USDC, you will be automatically opted into rewards.
• Since the coin was launched in 2018, Circle has provided so-called attestations from the accounting firm Grant Thornton about the crypto’s reserves.
• After March 2020, though, the statements said that reserves were kept in institutions and in “approved investments”, but did not say what these investments were.
• In other words, it’s typically ‘decentralised digital money designed to be used over the internet’ as stated by Coinbase.
• Cryptocurrency is inherently volatile but you can reduce the risks by investing in quality projects that provide value to the community.

Create an account and supply a copy of your photo ID for verification. There are a number of fully licensed, registered issuers of USDC and their US dollar holdings are audited monthly to ensure that the USDC network remains fully backed at all times. This would depend on your motivation for buying USD coin.

Hedge Funds Increasingly Investing in Tech Startups

You can buy USDC, sell, and trade it on a variety of cryptocurrency exchanges (including Bybit). Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, https://www.tokenexus.com/ or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales. Content is for information purposes only and is not investment advice.

What’s more, with the transfer happening almost instantly, USDC moves at internet speed.

Contents

This came ahead of Allaire’s announcement that Circle would become the first stablecoin owner to operate on the New York Stock Exchange. This would happen, Allaire said, once Circle had carried out a merger with Concord Acquisition Corp, a publicly traded special purpose acquisition company, in a deal that would see Circle valued at $4.5bn. This means that at any given time one USDC is worth one dollar. You’ll be charged a fixed 1% fee whenever you buy or sell anything on CoinJar. The exchange rates you’re quoted might sometimes be a little higher than you can find elsewhere (but when I’ve checked, not by much at all). You can then buy USD Coin (USDC) and other supported cryptocurrencies quickly and easily through their browser interface or mobile app.

The term ‘unpegged cryptocurrencies’ refers to cryptocurrencies not linked to the value of another asset, such as a country’s currency. On the other hand, stablecoin is considered less volatile because its value is fixed to another asset. Irrespective of the time zone and distance, USDC wallets make it easy to undertake transactions easily. This wallet-to-wallet transaction is undertaken in minimal time. This is advantageous when compared to wire transfer, which may take more than three days to show the debit in the receiver account. USDC is a digital stable coin that is fixed to the US dollar.

Still, vs the likes of Bitcoin, they share similar characteristics and are available for lending and in mining pools with variable transaction fees. USD Coin is a legitimate crypto with promising yields for active investors. It may not be as popular as the likes of Bitcoin, but it is available on leading exchanges including Coinbase and Kraken.

Similar projects to USD Coin include Tether (USDT), TrueUSD (TUSD), Gemini Dollar (GUSD), Paxos Standard Token (PAX) and Dai (DAI), which are all ERC-20 stablecoins pegged to the U.S. Check out this article to choose the most convenient way to buy cryptocurrencies, including USDC. Currency Com Limited is a private company limited by shares incorporated in Gibraltar under company number , having its registered address at Madison Building, Midtown, Queensway, GX11 1AA, Gibraltar. The merchant location address is located at Unit 5.25, World Trade Center, 6 Bayside Road, Gibraltar, GX11 1AA. Digital signs (tokens) (hereinafter referred to as “tokens”) are not legal tender and are not required to be accepted as a means of payment.