Similar to how other stablecoins are released, Circle’s USDC is reportedly backed 1-to-1 with the USD, meaning that the company has as much fiat currency, or USD, in its bank account as the number of USDC coins it has issued.
The new companies that now support USDC include: BitMart, Bit-Z, DDEX, FCoin, Gatecoin, Hanbitco, Hotbit, QCP Capital, and SWFT Blockchain (a platform to facilitate quick cryptocurrency transfers).
In its announcement, Circle revealed that other digital asset exchanges are also planning to list its stablecoin.
Providing A “Governance Framework For Mainstream Adoption”
As CryptoGlobe reported in October, US-based crypto exchange Coinbase and Circle jointly announced the launch of USDC – which is based on the ERC-20 standard. The USDC was developed as part of a joint effort by Coinbase and Circle called “CENTRE Consortium.”
The consortium aims to “[establish]a standard for fiat on the internet and [provide]a governance framework and network for the global, mainstream adoption of fiat stablecoins.”
Notably, the new companies now involved in the USDC network have joined over 50 other organizations that are also currently supporting the American fintech’s stablecoin.
Circle Will Not Charge Fees When Redeeming USDC
In order to encourage more users to adopt the USDC, Circle will not charge fees when customers redeem the stablecoin for USD. This could motivate more traders to use it and more exchanges might also be interested in listing it.
After heightened fears among traders and investors about Tether (USDT) and Bitfinex’s banking operations, digital currency exchanges have started supporting more stablecoins so that users can choose which stablecoin they are more comfortable with.
On October 15th, Malta-based exchange, OKEx, announced that it would start listing the following stablecoins: Paxos Standard Token (PAX), Circle’s (USDC), True USD (TUSD), and the Gemini Dollar (GUSD).
On October 16th, Singapore-based digital currency exchange, Huobi, announced that it would also start listing the PAX, USDC, TUSD, and GUSD stablecoins. Moreover, Huobi Global went a step further by launching the HUSD solution.
Eliminating The Need “To Choose Between Stablecoins”
According to Huobi, the HUSD solution makes it easier for traders to make withdrawals and deposits using “multiple stablecoins.”
Stablecoin deposits (on Huobi’s exchange) are shown as HUSD in customer accounts, and the HUSD solution allows withdrawals to be made in any stablecoin the user chooses – provided there is a sufficient balance.
Huobi noted that the HUSD system “eliminates the need to choose between multiple stablecoins” and it also “saves costs when switching between stablecoins.”