Working as a globally acclaimed fully collateralized US dollar stablecoin, USDC has achieved two celebratory milestones for its global customer base. Firstly, the renowned stablecoin project has crossed the whopping mark of $600 million in market capitalization. Secondly, USDC has been adopted by MakerDAO to work as an alternative form of collateral, which implies that the investors will now be allowed to use the stablecoin for opening Vaults to generate DAI.
The news was broadcasted amongst the investors through an official tweet post on Coinbase’s Twitter handle. It read:
According to the reports, on March 16, 2020, the MKR governance token holders indulged in voting to pass the proposal concerning the addition of USDC as collateral in the network. The positive results shown in the voting procedure were directly linked to the recent events related to the DeFi application MakerDAO. The sharp fall of ETH from $194 to $124 in a short span of hours created a surprising situation leading to the liquidation of over $4MM CDP positions. The move is likely to trigger a surge in DAI liquidity and stability.
Launched in 2018, USDC is a brainchild of CENTRE Consortium, which serves as an open-source technology project co-founded by Coinbase and Circle. Owing to its stability, security, and transparency, the stablecoin evolved as the second-largest stablecoin in the world in terms of market capitalization. USDC can be effectively used for safe cross-border transactions and remittances, for buying, selling, lending, investing, and trading in Dapps and crypto exchanges, as well as a programmable dollar for developers and fintech entities.
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USDC is backed by the US dollar that is held in a reputed US bank. Also, its reserve balances are attested to by top-five accounting firm Grant Thornton LLP. Coinbase allows its customers to convert their USDC funds into any cryptocurrency listed on the exchange platform or convert and withdraw in US dollars.