One of the biggest U.S. cryptocurrency trading platforms Coinbase has recently added Circle‘s USD Coin (USDC), which is the first stablecoin to be listed on the exchange and the second ERC-20 token available for trading after Coinbase’s addition of the 0x token earlier this month.
According to the Coinbase official blog post, customers can buy, sell, send and receive the USDC at Coinbase.com, as well as via the Coinbase iOS and Android apps. US customers outside New York state can buy and sell, while customers around the world can send and receive. In the future, these features will become available to more geographies.
Aiming to provide the world with a more transparent financial system, Coinbase and Circle have established a collaborative “CENTRE Consortium” and developed the underlying technology behind the USDC as co-founders. Both Coinbase and Circle operate with a compliance-first approach and a track record of security.
The USDC stablecoin was first introduced by Circle at the end of September 2018. In comparison to other digital currencies like Bitcoin or Ether, USDC represents itself a digital version of a single US dollar (USD) that does not move up or down relative to its reference currency.
The USDC rate to USD is 1:1 on the Ethereum blockchain, which does not change, making the asset stable and rigid to any kind of volatility. Moreover, each USDC token is totally collateralized by a corresponding USD held in accounts subject to regular public reporting of reserves.
According to the Coinbase blog post, the digital representation of USD is much more beneficial than fiat dollar, so that it can be called a real step forward to a more transparent financial system:
“The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
Any amount of USDC can quickly be sent and received at any time. Large transfers for business purposes are as easy as small e-commerce payments. A USDC follows the ERC20 standard, which means it can be used with any app that accepts tokens based on that standard. For developers and fintech companies owing the private keys for USDC, a program can easily send and receive them back and forth using the public Ethereum blockchain.
The USDC token is currently supported by Coinbase Wallet, a user-controlled wallet where people can store ERC20 tokens. On Coinbase Pro it will become available in the coming weeks.