Goldman Sachs-Backed Circle Launches Dollar-Pegged USD Coin
Poloniex, a top-15 cryptocurrency exchange by trading volume and subsidiary of Goldman Sachs-backed Circle, announced today that trading for USD Coin (USDC), a stablecoin backed by the US dollar, has officially gone live.
NEWS: as part of Circle’s commitment to making Poloniex the premiere destination for #crypto asset trading, we are delighted to announce today the introduction of USD Coin (#USDC) https://t.co/gWWokHrGka
— Poloniex Exchange (@Poloniex) September 26, 2018
According to the announcement, individual and institutional investors can now deposit U.S. dollars from bank accounts and convert those dollars into USDC tokens. From there, investors can send the USDC to their Poloniex wallet to trade crypto assets.
USDC was built using the ERC-20 standard and operates within the regulated framework of U.S. money transmission laws, and is “reinforced by established banking partners and auditors,” according to Circle.
USDC tokens were first introduced in May when the Circled closed a Series E financing round, where it raised $110 million at a valuation of nearly $3 billion. The proceeds from the funding round, which ranks among the largest in the history of crypto, were reportedly used to fund the development of the USDC token.
The stablecoin market is quickly becoming crowded.
News of the USDC launch comes roughly a month after Terra, a blockchain-based stablecoin payment platform founded by Daniel Shin, the founder of TicketMonster, raised a $32 million seed round led by a group of prominent crypto exchanges, including Binance, OKEx and Huobi Global. The funds will be used to launch a stablecoin, also named Terra, as the main currency for the new payment platform.
a16z has previously made investments in stablecoins like TrustToken and Basis, indicating that the firm is betting that these price-pegged digital currencies will play a significant role in the emerging industry.
BTC/USDC, ETH/USDC, and USDT/USDC markets are now live on Poloniex.
Photo: Marco Verch / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.