Circle is taking USDC on a slow ride to recognition, with Coinbase giving a boost.
Doing It Right
The stablecoin USDC is on track to have its entire reserves backed by short-duration United States Treasury securities and cash by September of this year.
The rapid growth of stablecoins and the active proof of reserves by USDC and its creator Circle give the coin a leg up over similar coins like Tether, USDT. The USDC coin has always been backed by the Centre Consortium, a partnership between Circle and Coinbase that guarantees a 1:1 dollar liquidity exchange for USDC at all times. Circle has confirmed that only 61% of reserves are back by cash and Treasuries as of July.
“Given our commitment to maintaining high standards, which in some cases go beyond those required by our regulators, we will, effective in September, hold all USDC reserves in cash and short-duration US government treasuries, which will be visible in our September attestation,” reads the press release from Circle on August 22.
As Coinbase asserts itself forward as the first cryptocurrency IPO in the United States, the backing and support for its quasi-native stablecoin gives the company a continued boost to mainstream recognition. Circle also expressed plans to go public and hopes to complete the process by the end of 2021.
Major Ambitions for ‘Full-reserve National Commercial Bank’
Circle has announced they have very ambitious goals moving forward, the prospects of which would help bring crypto to a new level of recognition. Circle, in conjunction with Coinbase, has a chance to bridge crypto into the mainstream.
The company recently announced ambitions to be the first full-reserve national commercial bank in the United States. Becoming the first FDIC-insured digital asset bank would be an incredible notable recognition for Circle.
USDC continues to carve out space as a legitimate stablecoin slowly. The coin has taken a bite out of USDT, Tether’s control on the market. USDC only matched 1/30 the market cap of Tether last year, and now it is about half. As Tether continues to face controversy, the growth and institutional adoption of USDC show it can be a powerful force in the world of stablecoins.
As the dialogue and perspective around crypto continue to change, it will be hard to argue with institutional recognition. The likes of Coinbase, Circle, and USDC seem to be on a no-frills path of recognition for crypto. Who can stop them?
Source : bsc.news
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