The world’s leading crypto exchange by trading volume, Binance, is adding support for dollar-pegged stablcoin USD Coin (USDC), according to a blog post, published today on the company’s website.
USDC made the headlines last month, as it was added on the largest US crypto exchange Coinbase, which described the ERC-20 token as a “US dollar on the Ethereum blockchain”. Coinbase also noted at the time that this type of digital currencies had some advantages over the fiat dollar, such as being programmable, as well as being easier to use in decentralised apps (dApps) and exchanges, to send quickly and to store locally.
The coin has now gained a listing on Binance, which earlier today enabled USDC deposit on its platform. Binance said that it planned to launch two trading pairs, USDC/BTC and USDC/BNB (Binance Coin) on November 17.
The USDC token, which is the result of a partnership between Coinbase and Circle, is reportedly fully backed by US dollars, meaning that it is tied 1:1 with the US currency. Binance advised its users to be cautious “if/when the price deviates from this ratio”.
“Additionally, for increased transparency, USDC has engaged a top-ranking auditing firm to release monthly balance attestations of the corresponding USDC and USD balances held/issued,” the company’s post reads.
Tether (UDST), the most popular stablecoin on the market, has been often criticised for its lack of transparency regarding whether its tokens are fully-backed by USD. Last month the coin suffered a price crash, falling to $0.925, its lowest level since early February.
Following the October 15 crash, billionaire investor Mike Novogratz opined in an interview with Bloomberg that Tether didn’t do a great job in terms of creating transparency,” operating off-shore. However, he defended the broader concept of stablecoins, saying that the concept “makes sense”.