Stock investors tend to view cryptocurrency as the Wild West of speculation, and the outsize volatility does seem to bear that out. However, income investors are starting to take on more risk in this low interest rate environment for a chance at far more substantial payouts. There are state restrictions and risks you will have to consider before turning your dollar-pegged USDC into a potentially high-yielding asset. There are increasing calls for stablecoin issuers to provide frequent breakdowns of their reserve compositions to address opaqueness in fast-growing crypto industry.
When lending on dYdX, users are always collecting interest, even when used in open trading positions for cross-margin. CUSDC is supported in a number of unique DeFi products such as Set Protocol Yield Sets in which assets rebalance in cUSDC during stable phases.
General Business Overview
In order to make sure that the value of USDC remains stable, USDC partners keep USD on bank accounts every time they issue new tokens. Those accounts are audited to make sure that there are as many USDC in circulation as there are USD in those accounts. Wyre is a leading blockchain payments company that provides a Wyre Savings API where FinTechs can access yield-earning savings products leveraging Stellar USDC.
LP token supply & Price information for USDC pair LPs on Raydium pic.twitter.com/1JP33IXqtn
— raydium_pool_bot (@Raydium_lp_bot) December 6, 2021
USDC is a joint venture project by Circle, a blockchain payments technology company, and Coinbase, a renowned exchange in the United States. Tether was previously ordered by a New York court to report to the authorities the location of its reserves every quarter. This was after they were sued for lending out funds from investors to crypto businesses in an attempt to try to conceal their losses allegedly. As a lender, you can gain money through interest on your crypto – perfect for earning passive income on assets you’re hodling. This lets you take out a leverage position on your crypto holdings or gain short-term liquidity. The USD Coin price page is part of Crypto.com Price Index that features price history, price ticker, market cap and live charts for the top cryptocurrencies.
CoinDesk is an independently managed media company, wholly owned by the Digital Currency Group, which invests in cryptocurrencies and blockchain startups. DCG has no operational input into the selection or curation of CoinDesk content in all its forms. Launched in late 2018, USDC is designed to maintain a stable value unlike other typically volatile cryptocurrencies. But even stablecoins such as USDC can still be prone to mild changes in price. If you would like to know where to buy USD Coin, the top cryptocurrency exchanges for trading in USD Coin stock are currently Binance, OKEx, Mandala Exchange, Huobi Global, and CoinTiger. From Boston to London to Seoul to Buenos Aires to Jakarta to Mumbai, here’s the future of how money moves. These simplified and improved user experience flows will accelerate the virality of making and receiving payments using USDC on the internet.
One USDC is always worth one USD — hence the name stablecoin. Payment card network Visa has announced that transactions can be settled using USD Coin , a stablecoin powered by the Ethereum blockchain. Crypto.com is the first company to test the new capability with its own Visa-branded cards. The collaboration has brought the World’s first bonding program on Avalanche… In this video we explain the real world use cases of each of the top 10 cryptocurrencies. A lot of focus in crypto is focused on the price and the volatility of each coin without many people necessary understanding what their purposes are. Bitcoin Digital Gold, a store of wealth and protection against inflation… this is because there’s a limited supply…
You don’t need a bank account and everything can be easily programmable. And you don’t need to support legacy systems, integrate with banks and pay transaction fees to other financial institutions. USD Coin Conversion rates are based on CoinDesk’s Bitcoin Price Index and the price indices of other digital assets. World currency prices are based on rates obtained via Open Exchange Rates.
- The USDCv price mechanism can get affected by pegging with fiat currency, which is a centralized system and can be intervened or controlled by the government.
- While the name may vary slightly, these currencies would be part of the same open-source framework and rely on a similar pegging mechanism .
- Users providing capital to BlockFi can choose to collect interest in a number of different assets.
- USDC is issued by the Centre Consortium which is led by Circle Financial, and Coinbase is also a Centre Consortium member.
- Digital asset markets and exchanges are not regulated with the same controls or customer protections available with other forms of financial products and are subject to an evolving regulatory environment.
USD Coin allows unbanked and under-banked individuals in any country to hold a US dollar–backed asset with nothing more than a mobile phone. USDC has been a popular stablecoin for quite some time as people use the asset to hedge against volatility, leverage the asset for decentralized finance applications, and more. At the time of writing, while the crypto economy is worth $1.97 trillion, USDC represents 1.56% of the crypto economy’s valuation. Stellar USDC offers exchanges exciting opportunities in new geographies. Not only is Stellar USDC fast and inexpensive to use for both institutional and retail users, it also gives exchanges access to Stellar’s existing anchor corridors which are supported by fintech applications built on Stellar. Exchanges supporting Stellar USDC provide greater access to the Stellar ecosystem, instantly meeting the needs and demands across these new, emergent economies. These aren’t banking products carrying Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protection to make you whole if things go bust.
A Stablecoin Brought To You By Circle And Coinbase
A US senator, Sherrod Brown said that stablecoins give investors « protection risks » and « raise several market integrity concerns. » Tether has long been probed regarding the location of its reserve funds. Wu Blockchaintweetedout that statistics coming from THE BLOCK show that there is 50% USDC compared to USDT.
Insider Q&A: Explaining the fast growth of stablecoins – KTAR.com
Insider Q&A: Explaining the fast growth of stablecoins.View Full Coverage on Google News
Posted: Mon, 06 Dec 2021 15:54:00 GMT [source]
USDC loaned on Compound is returned as cUSDC – Compound’s interest-earning version of USDC– which is commonly seen as the defacto rate for USDC lending within DeFi. BlockFi takesminimal fees, meaning the lion’s share of interest is earned by the lender. BlockFi recently introduced afiat onramp with US-leader Silvergate – meaning users can now lend USDC directly with a USD wire. USDC supplied to BlockFi is secured using Gemini Custody– a leading US exchange praised specifically for its advanced security measures. USDC was created by CENTRE – a consortium founded by Coinbase and Circle.
How Does Usdc Work?
USDC is an ERC-20 token, which means that it leverages the Ethereum blockchain and ecosystem. Unlike traditional cryptocurrencies, you can be sure that the value of your USDC wallet isn’t going to fluctuate like crazy. Ecosystem projects like FTX and Serum have already added Solana USDC into their products, and Circle is planning to launch USDC-SPL across their entire suite of platform services.
Is USD coin FDIC insured?
Like Coinbase, all USD balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and held in custodial bank accounts. … Anything in a coin, even a stablecoin like Tether, USDC, DAI etc is not USD. Stablecoins really are not as « stable » as USD for the insurance reason.
Tether has dipped its hands in hot water a few times before, with the most recent being a US senator asking for better transparency regarding how the stablecoin works. To explain, Tether, or USDT, came into scrutiny due to concerns regarding the whereabouts of $73 billion in investor funds that are backing the value of the digital USDT, according to the story byCityAM. Circle’s support for USDC on Hedera follows the announcement earlier this year by Centre Consortium—which governs USDC—that it will expand access to a range of new blockchains pioneering greater speed and scalability with less cost. Built around a core pillar of environmental sustainability, the Hedera network has achieved carbon neutrality and is committed to carbon negative network operations. A crypto wallet helps you protect and control your private key. Ledger hardware wallet is the best way to own and secure crypto.
On Saturday, USDC commands around $3 billion in global trade volume. While usually, USDC has very little fluctuation because it’s pegged to the USD, it can still be $0.98 to $1.02 per token. On May 8, 2019, USDC exchanged for $1.17 per token as it was 14.6% higher that day. DYdXis adecentralized exchange offering permissionless leverage and lending opportunities. Users can swap USDC for Dai on dYdX as a means to short Ether with up to 5x leverage. The payment company already supports 160 currencies across the globe.
It’s a bit difficult to give an exact number here — as in theory, the number of USDC that can exist is limitless. New coins are created in line with demand, whenever someone wants to purchase one with their humble dollar.
Digital asset markets and exchanges are not regulated with the same controls or customer protections available with other forms of financial products and are subject to an evolving regulatory environment. Digital assets do not typically have legal tender status and are not covered by deposit protection insurance.
The protocol has historically offered the highest returns on stabelcoin lending, including USDC. Thanks to a partnership with Anchorage, Visa is adding support for its first digital currency. Anchorage recently received a federal banking charter and is positioning itself as a digital asset bank. Visa was probably looking for a trustworthy partner for this program. As Anchorage got a thumbs-up from regulators, the partnership makes sense. DSTOQ makes use of Stellar USDC as a trading and global settlement instrument for its US-grade securities tokenization and digital asset issuance consumer product and API services. Binance – Buy over 350 tokens in seconds with fees as low as 0% 0% FEES Spot, futures, options, NFTs, savings, staking, and Binance Card.
Consumer Products & Retail
Centre, a consortium that developed the stablecoin and was founded by Circle and crypto exchange Coinbase, unveiled the change Sunday. It has a circulating supply of 41 Billion USDC coins and a total supply of 40.9 Billion. If you are looking to buy or sell USD Coin, Binance is currently the most active exchange. Nexo.io – Earn up to 20% APR on Your Digital AssetsMake your idle digital assets work for you with Nexo. Feel free to customize the period of time to see the price history for the required time.
Can You Earn More Than 0.15% on Your USDC? – Motley Fool
Can You Earn More Than 0.15% on Your USDC?.
Posted: Thu, 18 Nov 2021 08:00:00 GMT [source]
You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens. You should not transact in the DPT if you are not familiar with this DPT. Transacting in DPTs may not be suitable for you if you are not familiar with the technology that DPT services are provided. The Graph Network is a decentralized indexing protocol for creating open APIs – called subgraphs – to retrieve data on the network. The credibility of the token depends on token issuer protocols such as fiat collateral management policy. Get whitepaper links and detailed information on the tokens listed on our platform. Our fixed-term earnings account gives you higher earnings with stable rates.
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What to expect at launch?
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🚀Trading pairs available at launch: $CKB/ $YOK and $CKB/ $USDC
🚀Start earning yield with your moved $CKB, with high incentives 😎 pic.twitter.com/fzta0dMkhH
— YokaiSwap Launch 12/3 12:00 UTC 🚀 (@yokaiswap) December 1, 2021
KuCoin Futures-Earn beginner gift up to $500Take 30s to create an account and claim the beginner gift when you complete simple tasks. USDC reserves are regularly attested by Grant Thornton, LLP, and the monthly attestations can be found on the Centre Consortium’s website. The ICHI ecosystem has attracted several high-profile partners, including Solana, Moonbeam, SushiSwap, 1inch Network, Loopring and Bancor. USD coin was developed by the Centre Consortium, a company that represents the partnership between Circle and Coinbase. Centre develops the technology and governing framework of USD coin, and Circle and Coinbase issue the coin.
Each asset has different lending and borrowing rates, all of which are listed as annualized percentages. As a leading US-based cryptocurrency lending platform, BlockFi currently offers the highest returns on USDC lending in a secure and trusted manner. With support for Bitcoin, Ether and USDC, BlockFi has quickly taken lead when it comes to centralized lending for a number of reasons. With over $100M in funding according to Crunchbase, BlockFi is backed by industry giants like Coinbase Ventures and Winklevoss Capital. Within the broader cryptocurrency lending landscape, USDC has been added to a number of centralized providers in tandem with its decentralized counterparts. For those less concerned about the trusted nature of lending, we’ve seen that centralized players have historically offered the best rates on USDC lending.
What is USDC coin used for?
Each USDC is redeemable for one dollar, and is backed by one dollar or a dollar-denominated asset with equivalent value held in accounts at regulated U.S. financial institutions. Those accounts are audited by U.S. accounting firm Grant Thornton LLP, which issues monthly attestations on the reserves backing USDC.
To this end, it says a major accounting firm is tasked with verifying the levels of cash that are held in reserve, and ensuring this matches up with the number of tokens in circulation. Overall, the goal is to create an ecosystem where USDC is accepted by as many wallets, exchanges, service providers and dApps as possible. Our new program has been designed to meet the needs of high volume trading firms, crypto exchanges and market makers. « This integration aligns well with the growing tokenized economy on the Hedera network and will help drive new projects. We look forward to working with the community to bring these applications to market. » « With Hedera, enterprises and financial institutions can access deep liquidity across countries and platforms, making USDC on Hedera an optimal asset for cross-border transactions and trades of all kinds. »
- Aave is an open source and non-custodial liquidity protocol for earning interest on deposits and borrowing assets.
- We offer investors a variety of opportunities in the digital assets industry.
- Market cap of cryptodollars increased exponentially over the last years.
- You should not transact in the DPT if you are not familiar with this DPT.
- Sign up for Circle Accountto use USDC across multiple blockchains within your exchange or wallet.
The technology behind CENTRE consortium makes it possible to exchange value between people, businesses and financial institutions just like email between mail services and texts between SMS providers. Users can swap USDC, be USDC Liquidity Providers to earn fees and boost their yield by up to 20x when staking CRO. The service is a collaboration between crypto exchange Coinbase and financial services provider Circle. Their shared vision to bring U.S. dollars onto a blockchain means traders can preserve their portfolio’s dollar value during periods of high volatility without having to exchange their crypto assets for a fiat currency.
There is currently more than $34 billion of USDC in circulation. Many crypto traders use stablecoins as an alternative to their bank, to buy or sell digital currencies. Circle claims that each USDC is backed by a dollar held in reserve, or by other « approved investments », though these are not detailed. The wording on the Circle website changed from the previous « backed by US dollars » to « backed by fully reserved assets » by June 2021.
Author: William Edwards