Crypto Startup Circle Launches Dollar-Backed Stablecoin USD Coin

Announcements, News | September 27, 2018 By:

Cryptocurrency platform Circle has launched USD Coin (USDC), an ERC-20 stablecoin pegged to the US dollar.

USDC, first announced at CoinDesk’s Consensus conference in May, was based on the open source fiat stablecoin framework developed and governed by Centre, an open-source initiative from Circle. The stablecoin will tokenize US dollars and use those dollars over public blockchain.

“Price-stable tokens are foundational requirements for enabling powerful new global financial contracts, products, and services on the Internet,” Circle said. “USDC is the first of several fiat tokens Centre expects to deliver, and Circle is the first of several forthcoming Centre members to launch USDC issuance.”

USDC is now available for immediate use on Circle Trade and crypto exchange Poloniex, which Circle acquired earlier this year. Additionally, over 20 companies have also announced their support for USDC, including DigiFinex, CoinEx, KuCoin, OKCoin, BitGo, Cobo, Coinbase, imToken, Coinplug and XDAEX.

“Individuals and institutions can enroll in this service to deposit US dollars from bank accounts, convert those dollars into tokens usable everywhere the Internet reaches (subject to the token’s compliance controls), and redeem USDC tokens and cash out to bank accounts,” Circle said.

Circle is not the first firm to issue a stablecoin, but Jeremy Allaire, CEO of Circle, said that USDC is unique because of its open-source roots.

“It’s going to have broad industry support right out of the gate,” Allaire told Forbes. “Because it’s built on an open standard, anyone can implement it.”