The sole purpose of this crypto is to provide a stable store of value, rather than provide an asset that, theoretically, appreciates in value over time. Pepe Coin, named after the iconic meme character, is a cryptocurrency that emerged in April 2023, riding the coattails of internet culture’s fascination with the green frog. Created as a decentralised token on the Binance Smart Chain, Pepe Coin aims to infuse the digital asset world What is USD Coin with the irreverent spirit of its namesake. In a nutshell, you probably shouldn’t put your life savings in USDC — or any centralized stablecoin for that matter. The risk of companies going bankrupt is a tangible one in this day and age, and if that were to happen, the stablecoin could lose its peg. Waning public trust is another factor that could mar a stablecoin’s stability, but that has yet to happen in the stablecoin industry.
- However, every platform offers a different level of security (and a different price).
- As the cryptocurrency ecosystem continues to evolve, USDC aims to exemplify stability and utility, driving the financial transformation forward.
- Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
- There are several crypto lending programs available that will pay you interest for lending your crypto.
- It means that it is issued by a centralized authority (in this case, the Centre consortium) and is subject to the decisions and policies of that authority.
Circle and Coinbase are both heavily invested in staying on the good side of global regulators. Somewhat luckily for both of them, most other stablecoin offerings simply cannot boast the same heritage. Coinbase Pro, the company’s full-fledged trading platform, allows traders to exchange dozens of cryptocurrencies against USDC. This allows traders from different regions to trade in a common environment. In addition to offering standardization, this approach also ensures sufficient liquidity and volume — especially in the case of small, less popular tokens. You must also notify the possible use cases of the US Dollar Coin in governance, particularly for transferring relief aid.
Currency Converter / Calculator
In December 2020, Circle partnered with Visa, allowing businesses on the Visa network to accept USD Coin. In July 2021, Mastercard (MA -0.42%) announced plans to incorporate USD Coin as a payment method. Payment processors Stripe and Checkout.com both announced support for https://www.tokenexus.com/ USD Coin in 2022. USD Coin is widely considered to be the safer option because of its transparency. Its management has provided reports since its launch, verifying its reserves. Tether Limited, on the other hand, didn’t provide information on its reserves for years.
Though the team separated from the bad players and updated internal security settings, the token’s value plummeted. For all these reasons, stablecoins such as USDT and USDC have found tremendous success of late. Redeeming USDC for U.S. dollars is just as easy as the tokenization process but in reverse order. Since then, he has assisted over 100 companies in a variety of domains, including e-commerce, blockchain, cybersecurity, online marketing, and a lot more.
What Is USD Coin (USDC)?
USD Coin is useful for individuals and businesses wanting a digital dollar. Stablecoins aren’t guaranteed, but the transparency of USD Coin makes it one of the most secure options. Even though it’s not an investment, USD Coin is an option for a passive income stream. Through lending programs, you can easily earn an annual percentage yield of more than 5% on USD Coin. As mentioned earlier, crypto lending programs have failed in the past, leaving users high and dry. There is the possibility of losing funds if borrowers default on their loans or if the lending platform goes through financial difficulties.