Circle, the firm behind the second most popular stablecoin USDC, has announced the release of a new ACH (automated clearinghouse systems) bank transfer payment rails for the seamless transfer of USDC stablecoin to USD. Customers in the U.S. can now use Circle's new API to electronically transfer funds between banks, pay bills, and also withdraw from their bank accounts. Circle has also partnered with Plaid to enable sign-ins using bank credentials instead of account and routing numbers for the feasibility in use.
In a blog entry, project manager Gee Chuang described how Circle’s ACH API improves connections between the fiat world and the digital world by introducing interoperability among payment rails, such as card, wire, or even blockchain transfers. By using the API, USD funds can be easily transferred between banks and blockchains automatically.
The new feature will coexist alongside other methods of fund transfers to Circle that includes card payments and wire transfers. It will allow an easier way to accept and convert bank transfers into USDC and vice versa or sending USDC to arrive as U.S. dollars in the bank accounts of customers.
Customers of FTX crypto exchange will be one of the first to use the new ACH system as FTX has already integrated the new ACH service to facilitate the launch of new cryptocurrency brokerage products.
In the announcement release, Sam Bankman-Fried, Founder and CEO of FTX, said:
“Circle APIs give us a fast, reliable and trusted infrastructure for connecting customer bank transfers to our new retail products, and with seamless settlement into USDC across Ethereum and Solana, this gives FTX the ability to offer the fastest possible experience for crypto investors.”
USDC, a token pegged 1:1 to the U.S. dollar has become the second-most-popular stablecoin. It supplies over $5.5 billion USDC second only to Tether which has a supply of more than $25 billion. The stablecoin was launched in Oct. 2018 as an alternative to Tether.
The USDC stablecoin supply grew by nearly 700% over the past year. In addition to being popular at Binance and Coinbase, the stablecoin is a favorite among DeFi traders at Uniswap, Curve, and Compound.