Circle has introduced a new API that allows USDC stablecoins to be converted into US dollars through an automated clearinghouse. This solution will become a “bridge” between banks and the DeFi industry.
The first trading floor to introduce the new API will be FTX, which specializes in futures and other derivatives. FTX will use Circle’s solution to expedite the USD settlement process on behalf of its clients.
Project manager Gee Chuang said the new API will become a “bridge” between the world of conventional money and digital currencies, making payments and money transfers easier. Funds converted to US dollars can be easily transferred between banks and blockchains. Previously, payment processing was done manually, now it will happen automatically.
“The Circle API provides a fast and reliable infrastructure for making bank transfers using USDC. At the same time, Ethereum and Solana blockchains will be involved “, – wrote Circle CEO Jeremy Allaire on Twitter.
To implement this initiative, Circle partnered with cybersecurity firm Plaid, which is optimizing the USD and USDC conversion process through Circle. It is about preventing inaccuracies when specifying bank account numbers and other common mistakes. Plus, Plaid will improve user security and reduce the risk of fraud. Chuan explained that “now you do not have to dig into numbers and switch between applications during calculations.”
USDC is pegged to the US dollar at a 1: 1 ratio and is powered by Ethereum. Stablecoin was launched in October 2018 as an alternative to USDT. The coin has a market capitalization of around $ 5.4 billion to date. USDC is in high demand on the Uniswap, Curve and Compound decentralized platforms. Recall that last year, Circle launched its stablecoin on the Solana, Stellar and Algorand blockchains.
Ellair is convinced that millions of people will start using cryptocurrencies in the near future, so issuers of digital assets must find a compromise with regulators. He also believes that asset tokenization will soon become more popular as it increases their liquidity without systemic risks.
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