FTX Partners with Circle to Tweak the USDC Stablecoin Support

Deepshikha  |  May 15, 2021

Cryptocurrency exchange FTX has partnered up with crypto payment company Circle in order to extend the offering of stablecoin, which adds additional support for USD Coin (USDC).

FTX Support to Stablecoin Through Partnership with Circle 

The announcement from the Crypto-exchange FTX to support USD Coin through a partnership with Circle is mutually created by Circle and cryptocurrency exchange Coinbase. It is a dollar-pegged stablecoin, valued at $1 USD at all times.

The partnership will facilitate users of FTX, along with its subsidiaries, Blockfolio. Under terms of the partnership, FTX has integrated Circle APIs and launched USD Coin (USDC) payments support across its FTX and Blockfolio services. Through the ‘fiat-to-USDC’ route. The customers of FTX can transfer the stablecoin on Ethereum and Solana.

FTX and Blockfolio customers can now fund their dollar balances with instant access for trading using credit and debit cards in nearly 200 countries, with funds instantly settling in USDC.

USDC - Jointly Created by Circle and Coinbase

The dollar-pegged stablecoin USDC is fabricated to be valued at $1 USD. USDC was jointly created by Circle and cryptocurrency exchange Coinbase, back in September 2018. The USD Coin is sustained by a consortium called CENTRE. As per the statistics, the circulation of stablecoin has grown from 400 million in early 2020 to over 15 billion today.

Registered with the US anti-financial crime watchdog, USDC is regulated by FinCEN. It’s also audited by Grant Thornton, a leading accounting firm.

Sam Bankman-Fried, Co-Founder CEO of FTX in a statement mentioned:

“Circle has been a pioneer in making fiat work on blockchains for nearly eight years and has built deep capabilities to ease payments in crypto.” 

USDC has many competitors, all pegged to the US dollar. At present, the largest stablecoin by market cap is Tether. Stablecoin issuer Tether revealed that it holds 76% of its reserves in cash and cash equivalents. Other stablecoins include Gemini dollar, True USD, and Paxos.

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