Circle Paves Way for Easy USDC-USD Transfers, Establishing a Connect Between Banks & DeFi
Circle, the firm behind the creation of arguably the second most prevalent stablecoin, USD Coin, has launched a new API that will permit for the easy transfer of USDC to USD through mechanized clearinghouse (ACH) systems. The foremost platform to integrate the latest API will be FTX, which is well experienced in derivatives, intending to expedite USD settlement procedure for their clients.
Project manager Gee Chuang, in a blog post, explained how Circle’s ACH API enhances links between the fiat networks and the digital world through the introduction of compatibility between payment rails, for example, wire, card and blockchain transfers. Utilizing the API, USD funds can be moved in a simple manner between blockchains and banks with processing being done automatically, instead of traditional manual process.
Circle has collaborated with Plaid, a firm that excels in online account safety and validation, to offer a procedure for simplifying USD/USDC transfer via Circle. Chaung said:
“This process prevents common errors like mistyping bank accounts or routing numbers and ensures greater user security, while reducing fraud reversal risks. No digging around for numbers, no clunky codes, no switching between applications during the process.”
“Circle APIs give us a fast, reliable and trusted infrastructure for connecting bank transfers to our new retail products, and with settlement into USDC across Ethereum and Solana, this gives FTX the ability to offer the fastest experience for crypto investors.”
— Jeremy Allaire (@jerallaire) January 26, 2021
Over 50 countries utilize same variant of ACH payment processing, including the US, the EU, China, the UK, Japan and South Korea. Circle has also collaborated with Visa to handle cryptocurrency linked payouts throughout 30 countries backed by their sophisticated network.
USD Coin is mainly an Ethereum powered token that can be swapped for the US dollars on a 1:1 ratio and is backed by holdings of assets that were regularly audited. Rolled out in October 2018 as a substitute to Tether, there are presently nearly 5.40 billion USDC in distribution, giving it the credit of being the second largest stablecoin in terms of market capitalization, after USDT.
Demand for USDC has reached historical high, resulting in weekly transaction volume records in the first three weeks of 2021. USDC, other than being the most popular on Coinbase and Binance platform, is also used frequently by investors who participate in DeFi ventures, with platforms such as Curve, Uniswap and Compound reflecting hundreds of millions in day-to-day trading volume.
What’s the best stable coin option right now?
USDT, DAI, USDC, TUSD?
— Matty (@DCLBlogger) January 23, 2021
Circle CEO Jeremy Allaire has been advocating the integration of conventional finance and cryptocurrency domain for a long time. Last month, he requested the US Treasury Department to permit cryptocurrency sector involvement in the regulation drafting proceedings.
Allaire, while talking at a fintech event earlier in December, forecast that forthcoming advancements in blockchain technology will foster huge adoption, offering its likely benefits to scores of users.