Stable coins are becoming more popular in the crypto space, promising both a reliable means of transacting and a storehouse for value during market volatility.
A new crypto token tagged ‘USDCoin’ will soon make its debut in the crypto market after Circle, a global crypto finance company, revealed that the plans of a launch are now in the latter stages.
The new cryptocurrency will operate on the principle of low volatility, a feature lacking in many digital tokens, and will be pegged to the USD to allow customers a way to easily store fiat in virtual currency rates of 1:1.
The blog post announcing the release revealed that a ‘price-stable medium of exchange and store of value is missing’ in the crypto space and would be needed to hasten the adoption of digital coins for payments and smart contracts.
On the basic feature of the new coin, the post by Circle disclosed;
‘’This solution (USDC) will enable customers to purchase and use USDC fiat tokens for payments and trading in the crypto ecosystem.’’
At launch, the USDCoin will run on the Ethereum Blockchain and be distributed through Circle’s newly acquired crypto exchange Poloniex.
Major Chinese crypto mining company, Bitmain is investing $110 million in the new project with top Circle investors, IDG Capital, Breyer Capital, General Catalyst, Accel, Digital Currency Group, Pantera, Blockchain Capital, and Tusk Ventures all involved.
USDC will not be the first crypto token pegged to the USD but claims it aims to improve on the deficiencies suffered by other stable coins such as Tether (USDT).
There is little doubt that this will be achieved as the new USD coin is founded on an open source network supported by established banking corporations such as Goldman Sachs.
Even though an official launch date is yet to be announced, Circle USDC will no doubt prioritize a provision of detailed financial and operational transparency to users if it will stand a chance of gaining popularity among crypto investors in the United States and beyond.
In fact, Circle admits to ‘have received broad interest in USDC from major crypto exchanges and players globally.’ Because USDC is built on the ERC-20 token standard, exchanges can add support for this token without being a part of the central unit.
While Circle has big goals, it won’t be easy for the USDC to become an ultimate stable coin because of the existence of other top players in the stable coin market such as Tether (USDT), USDX, Havven, and TrueCoin (TUSD).
Also, Binance has announced that it would start trading TrueUSD (TUSD) from Tuesday, 22 May 2018. This will no doubt accelerate the growth of the stable coin.
Trading for $TUSD on #Binance will begin in 10 minutes (2018/05/22 04:00 AM UTC).
Reminder: #TUSD is a fully collateralized stablecoin backed by US dollars. The value is designed to be 1 TUSD = 1 USD @TrustToken pic.twitter.com/U9IQlJsDxB
— Binance (@binance) May 22, 2018