Review on USD Coin by Fanuel PORPORTY
USD Coin (USDC) is a stablecoin entirely based on the US dollar and developed by the CENTER consortium
The USD Coin token (USDC) is a stablecoin that replicates (1: 1) the US dollar. This stable token was jointly launched by Circle and Coinbase. Guaranteed US dollars are held in various accounts, and reserves are subject to regular certification. USDC is the most recent stablecoin. Considering the fact that it is supported by two major cryptocurrency purchase or exchange platforms with strong brands and given the fact that these platforms allow direct withdrawal in US dollars, it is normal for the token USDC has seen rapid adoption, as shown by the large number of tokens issued.
Although Coinbase Inc. has a BitLicense issued by the NYDFS, it is indeed a trustee (such as Gemini Trust) and it is likely that the USDC token is not subject to any capital reserve requirements by any government entity. Given that Coinbase is more popular with small investors than Gemini, which targets institutions, it seems that this stablecoin could end up with a dominant position compared to its rivals, at the cost of a slightly lower confidence for the end user. .
Pros
- The USD Coin token is supported by many major cryptocurrency platforms.
- The guarantee is regularly certified by an independent auditor
- Both the Circle and Coinbase platforms allow the withdrawal of the USDC from user bank accounts in US dollars.
Cons
- Although Coinbase Custody is a NYDFS-regulated trust company, Coinbase Inc. and Circle, which forms the CENTER consortium, are separate entities which are not subject to scrutiny.
