Nick Chong · 3 days ago · 2 min read · Insights via Grayscale Investments
Circle Introduces Stablecoin Backed By U.S. Dollar
The U.S. dollar-backed stablecoin USD//Coin (USDC) is the product of Circle’s partnership with CENTRE, the open source distribution network which will facilitate deposits from U.S. bank accounts. With an open-internet concept in mind, USDC was designed for universal exchange and is available for immediate use. Other applications are available to support USDC tokens by ERC20 standards.
The consortium allows fiat-backed tokens to come full Circle
Founders Sean Neville and Jeremy Allaire said USDC is available for individual and enterprise use after being approved by the New York Department of Financial Services. Circle’s infrastructure is marketed as a safe and easy-to-use tool for developing global contracts, products and services. More than 20 companies have already pledged support for the platform by making their wallets and software platforms available for USDC trade.
The founders noted:
“We believe that an open internet of value exchange can transform and integrate the world more deeply, eventually eliminating artificial economic borders and enabling a more efficient and inclusive global marketplace that connects every person on the planet. The future of the global economy is open, shared, inclusive, far more evenly distributed, and powerful not only for a few chosen gatekeepers, but for all who will connect.”
It’s been less than a year since Circle made headlines by raising $110 million to begin the USDC venture. Bitmain had a major influence in raising the funds, and will also accompany Circle in coin development. According to the release, Circle is “enshrined to governance,” and therefore requires commercial issuers to be licensed, offer proof of audited reserves, and use technology that meets FATF standards.
Growing Membership Sustains Transparency
CENTRE procured $20 million in a SAFT sale last November. The contributing member operates on the Ethereum network and plans to produce several more fiat tokens while sustaining its relationship with Circle to build clientele. By joining the ranks of fiat-backed platforms like Gemini, the market continues to build upon security measures and accountability.
Moving forward, CENTRE is projected to act as an individual entity procuring additional members beyond Circle. The resulting framework of technology issuers is believed to sustain the growing ecology of cryptocurrency adoption.
Neville and Allaire concluded:
“This vision relies upon an open standards model for fiat money on the internet, which is emerging now with broad industry support behind USDC. The potential is immense, and we are excited to be part of this next step.”