The $ 3 billion start-up start-up Circle, backed by investment banking giant Goldman Sachs, has created a crypto currency "stebblecoin." Its value is tied to the US dollar and is maintained by the physical currency stored in bank accounts owned by the company.
The newly announced USDCin (USDC) crypto currency will allow individuals and institutions to delineate the physical currency for use in foreign trade and other cross-border transactions requiring quick settlement. USDC is structured as an ERC-20 token in the Ethereum network.
Commenting on the announcement, Jeremy Allair and Sean Neville, co-founders of Circle, said:
"When we founded Circle five years ago, we and many members of the crypto-currency community foresaw that the money and financial contracts would be at the head of the infrastructure of a distributed public network built on open standards that would allow all of us to exchange values as easily and instantaneously, How we access information in web browsers or exchange messages in applications. Just as HTTPS, SMTP and SIP provide free exchange of information and communication, crypto-currencies and blockchain technology will allow us to exchange values in a similar way: instantly, globally, safely and de-si ".
Contrary to most other steebles supported by US dollars, Circle will not be the sole issuer of USD Coin. Instead, the token will have several issuers in the future, as more and more organizations will join CENTER, an open-source consortium launched to create a decentralized network of fixture stablcoins.
In accordance with CENTER's organizational principles, USDC issuers must have regulatory licenses permitting them to process electronic money, use anti-money laundering protocols, provide verified monthly reports demonstrating that the tokens issued by them are fully supported by stocks held in bank accounts and agree Buy all USDC tokens, including those issued by other members of the consortium.
It should be noted that some of the most popular crypto currency services, including Coinbase, BitGo, Ledger and imToken, will provide built-in support for USDC.
USDC is by far not the first stablkoin in the growing list of applicants for Tether (USDT) as a crypto currency with support for the US dollar. Only this month, exchange operators Gemini and Paxos launched similar products under the supervision of the Financial Services Department of New York (DFS), the creator of the strict regulatory framework BitLicense.