A consortium called Centre — which includes Bitmain Technologies Ltd. among its members — will act as a platform for deposits and fiat conversions for the stablecoin. Bloomberg notes that although Centre is a “wholly owned subsidiary of Circle,” there are plans in plan to turn it into an independent organization.
The USD Coin (USDC) will reportedly be available on Circle’s Poloniex exchange, as well as Huobi, OKCoin, KuCoin, and digital wallet and exchange Coinbase. As per Circle’s release, over 20 companies are about to announce support for the USDC, while others might add trading through the open ERC-20 standard.
Centre will act as a regulator for USDC issuers, ensuring that they possess state licenses to handle electronic money, meet the anti-money-laundering (AML) standards, and have banking partners to hold their dollar reserves. Furthermore, Centre reserves the right to allow certified public auditors to monthly review partners’ USDC reserves, Circle notes.
Circle emphasizes that USDC is the first of several stablecoins Centre expects to present. The company believes fiat tokens will be able to “eliminate artificial economic borders and enabl[e] a more efficient and inclusive global marketplace that connects every person on the planet.”
Circle CEO Jeremy Allaire told Bloomberg that USDC will be “a huge difference” from Tether — the most well-known and reportedly controversial stablecoin:
“Market infrastructure like stablecoins will become the base layer that supports every financial application. It has to be legitimate, trustworthy, built on open standards. We are solving a lot of these fundamental problems that exist. That’s a huge difference from something like Tether, and we think the market will very quickly gravitate to that."
In early September, blockchain Trust company Paxos had also launched a stablecoin the same day as the Gemini dollar. The Ethereum (ETH) blockchain-based Paxos is backed 1:1 by USD, and was approved by the New York State Department of Financial Services, which will act as a regulator for the token.