Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments. Bitcoin mag is the leading magazine on Cryptocurrency with years of experience covering What is USD Coin Bitcoin’s movement since its first mad bull run. Our writers do exclusive research to give our readers the most current and correct information. We take pride in our Cryptocurrency marketing analysis and offer the best possible solutions to our readers.
You can make passive income with USDC by lending it to other crypto investors. A few lending programs will pay you interest for lending your USDC. But of course, no investment is risk-free, and you are taking a little bit of risk on borrowers in gaining a yield on USDC. While USDC’s value is based on the value of the U.S. dollar, Bitcoin’s value is derived from its limited supply.
Like stock market investments, Cryptocurrencies also have a degree of volatility that is hard to withstand. Registering with either Coinbase or Circle will require you to complete Know-Your-Customer and Anti-Money Laundering checks. These tests are commonplace in the financial https://www.tokenexus.com/ world as they are needed to assess a customer’s risk of committing illegal activities. You will also need to provide extensive documentation to prove who you are. Again, this is a common practice and Coinbase completes these checks on any customers joining their service.
- The sole purpose of this crypto is to provide a stable store of value, rather than provide an asset that, theoretically, appreciates in value over time.
- There are different types of stablecoins in the crypto market today.
- In simpler terms, this means you can store USDC tokens on dozens of existing digital wallets.
- Rather than needing a bank account, which can be difficult to get, USDC users only need an internet-connected device and a wallet that supports ERC-20 tokens.
- This was largely due to Japan’s yawning trade deficit and the Bank of Japan’s (BoJ) dovish stance.
It will typically be a little easier to trade Tether for other cryptocurrencies due to its trading volume. USD Coin was issued by Circle, a peer-to-peer payments company, and Coinbase Global (COIN 0.07%), a cryptocurrency exchange. Circle first announced plans to launch USD Coin on May 15, 2018, and raised $110 million. It was developed by Centre, a technology project backed by cryptocurrency exchange Coinbase and Fintech company Circle. Unfortunately, an ongoing investigation has proved that the claim is false.
However, a few factors have enabled it to become the second-largest stablecoin on the market today. In a nutshell, you probably shouldn’t put your life savings in USDC — or any centralized stablecoin for that matter. The risk of companies going bankrupt is a tangible one in this day and age, and if that were to happen, the stablecoin could lose its peg. Waning public trust is another factor that could mar a stablecoin’s stability, but that has yet to happen in the stablecoin industry.
USD Coin (USDC) was launched in 2018 and is the second-largest stablecoin. There are different types of stablecoins in the crypto market today. The three major types you should be aware of are crypto-backed, fiat-backed, and algorithmically stablecoins. Did you know stablecoins carry around 14% of the entire crypto economy? The stablecoin market is currently worth approximately $190 billion. Given the short history of stablecoins in the crypto world, this is astounding.
USD Coin and the promise of programmable money
With USDC built right into the Ethereum network, however, developers can simply reprogram their contracts to use the stablecoin instead. The advantage of using an existing blockchain platform is that stablecoin developers don’t have to reinvent the wheel and create their own network from scratch. The Ethereum platform has also already reached critical mass in terms of support from third-party providers such as wallets. In simpler terms, this means you can store USDC tokens on dozens of existing digital wallets. Coinbase Pro, the company’s full-fledged trading platform, allows traders to exchange dozens of cryptocurrencies against USDC.