The USD Coin (USDC) could be the best stablecoin you have never heard of. USD could become the standard in Stablecoins because they designed it for business use.
For example, Circle, the organization behind USDC has launched an Institutional Trading Program for high-volume trading firms, cryptocurrency exchanges, and other big organizations. Circle claims the USD Trading program offers support for automatic USDC conversions from banks in over 85 countries.
Moreover, Circle has built automated application programming interfaces (APIs) for USDC. Circle claims you could wire and transfer USDC using the APIs. Circle boasts that its engineers built support for custom treasury and settlement flows into the Circle Wire APIS.
USD Coin Institutional Trading Program
Plus, there is 24-hour-a day and seven-day-a-week infrastructure for the creation and redemption of USDC. Circle offers high-volume traders support from a team of institutional coverage professionals.
I think Circle’s team designed USD Coin for use by banks, investment banks, hedge funds, mutual funds, fund managers, pension funds, and other high-volume users. Future plan at Circle include token swap services for Multichain USDC and USDC Yield products.
The Yield products could provide working capital and overnight funds for business. For example, a fast-loan for a company with a sudden cash shortage.
Decentralized Finance
Similarly, Circle offers USD Coin Business Accounts. Furthermore, there are specific Circle and USD Coin solutions for Banks & Fintechs, Gaming, Digital Securities, Commerce, Marketplaces, DeFi & CeFi, and Cryptocurrency Startups.
DeFi stands for decentralized finance. Decentralized finance replicates existing financial products and services with smart contracts and decentralized protocols.
Smart contracts are digital robots that operate in the blockchain and perform a specific task. An insurance smart contract could pay a life insurance policy in USD Coin (USDC), for example.
An interesting example of DeFi that Circle is experimenting with is liquidity mining. Liquidity mining automatically adds liquidity to DeFi protocols as they operate. For instance, Circle’s Balancer and Compound protocols reward liquidity providers with protocol-native tokens for participating in a platform.
Hence, Circle could reward a bank that lends money through Balancer or Compound. Balancer is an autonomous market maker protocol that rewards liquidity pool participants with the BAL governance token. Meanwhile, compound rewards companies that borrow and lend stable coins with the COMP token.
Centralized Finance
CeFi, or Centralized Finance, is the use of cryptocurrency, smart contracts, and stablecoins to build centralized financial infrastructure in the blockchain.
For example, services that offer cryptocurrency or stablecoin loans to retailers or retail investors. Genesis, BlockFi, and CoinBase are testing such services. For example, an investment bank could offer stablecoin loans to game developers through a gaming platform. The developer could repay the loan by allowing the bank to deduct money automatically part of the fees players pay to access the game.
I think Circle designed USD Coin (USDC) for CeFi and DeFi. Notably, Circle claims to issue USDC through regulated financial institutions. Similarly, Circle offers DeFi investors access to Circle Business Bank Accounts that tokenize US dollars. The Circle Business Bank Accounts enables users to move digital dollars in and out of DeFi protocols.
Hence, players can pay a game owner in USD Coin. Then, the game owner can convert the USD Coin into US Dollars to get money to pay its bills fast.
How popular is USD Coin?
Circle claims USDC operates on the largest stablecoin industry ecosystem in the world, with 2.9 billion USDC in circulation on 11 November 2020.
Conversely, CoinMarketCap estimates USD Coin (USDC) had a Market Capitalization of $2.961 billion and a 24-Hour Market Volume of $652.864 million on 2 December 2020. In comparison, CoinMarketCap calculates the most popular stablecoin Tether (USDT) had a Market Capitalization of $119.415 billion and a 24-Hour Market Volume of $65.267 billion on the same day.
CoinMarketCap listed USDC Coin as the 13th most popular cryptocurrency and Tether as fourth most popular cryptocurrency on 2 December 2020. Interestingly, I think Tether is the most traded cryptocurrency because it had a 24-Hour Market Volume of $65.267 billion on 2 December 2020. In contrast, Bitcoin (BTC) had a 24-Hour Market Volume of $37.598 billion on the same day.
Circle claims its users transferred 205 billion USD Coins on-chain as of 25 November 2020.
Is the USD Coin (USDC) a Good Cryptocurrency?
I think the USD Coin is a good cryptocurrency and a great stablecoin with a bright future.
Speculators need to investigate USDC Coin because they are designing it for business and institutional trading use. In particular, Circle offers solutions that allow you to run your business on USDC.
I think there will be an enormous market for this service because it allows fast access to the world’s reserve currency the US dollar. For example, a software developer in Argentina or Cuba could use USD Coin to accept payments from clients in the United States or the United Kingdom.
Similarly, an American massive multiplayer online game (MMOG) could accept payments from players in Africa or India through USDC Coin. Meanwhile, a British investment bank could make USDC Coin loans to firms in Costa Rica or Sri Lanka.
If you are looking for stablecoin, that could have a bright future, USD Coin could be an excellent choice. If Circle’s claims come true, USD Coin could become one of the world’s most popular stablecoins and cryptocurrencies. Speculators seeking a cryptocurrency genuine people could use in the actual world need to examine USD Coin.
Originally published at https://marketmadhouse.com on December 2, 2020.
