Thinking of buying USD Coin (USDC)? Coinbase has put together this handy Q&A to help you understand whether it's right for you.
What is USDC?
USD Coin (USDC) is a type of cryptocurrency that is referred to as a stablecoin.
You can always redeem 1 USD Coin for US$1.00, giving it a stable price.
On Coinbase, eligible customers can earn rewards for every USD Coin they hold.
Why is USDC important to Coinbase?
As part of our mission to increase economic freedom in the world, we want to build more on-ramps for users to access USDC – our vision for the most trusted and reputable digital dollar.
Our research shows that adoption of USDC has been more conservative outside of the US.
Currently, three times more USDC is bought with US dollars versus non-US dollar currencies.
In part, this is because, outside of the US, users usually have to pay fees in the process of converting their local currency into USDC, and this is a barrier to broader international adoption.
The way to correct this, and accelerate adoption of USDC internationally, is by establishing global parity for all users.
USPs of USDC
Stability
USDC is a stablecoin pegged to the US Dollar, backed by high-quality reserves and with transparent and regular attestations, meaning it is always redeemable on a 1:1 basis for US dollars.
While the value of many cryptocurrencies can fluctuate dramatically, holding a stablecoin like USDC gives users the stability and confidence they need in times of high volatility.
This benefits users who want to remain active in the crypto market during a downturn, or period of high volatility so that they’re ready when the market shifts.
Now, you can earn 1% annual percentage yield* on your holdings and grow your crypto**.
Trusted transparency:
USDC is backed by dollar-denominated assets of at least equal fair value to the USDC in circulation, held in segregated accounts with US regulated financial institutions, and has transparent, regular attestations of assets.
Now, you can earn up to 1% annual percentage yield on your holdings and confidently grow your crypto and pay no commission fees (disclosure: This feature may not be available to all regions. No commission fees attributed to Coinbase will be charged until further notice. However, spread, and processing fees charged by third-party processors, will continue to apply) to get started.
Accessibility:
USDC is a secure, cheaper, and much faster solution for anyone to send value around the world.
By running on blockchain technology, USDC transfers can be completed in under an hour compared to multiple days for legacy banking systems.
Plus, users will avoid the intermediary costs associated with traditional banking networks.
Background on Coinbase
Coinbase is building the crypto economy – a more fair, accessible, efficient, and transparent financial system enabled by crypto.
The company started in 2012 with the radical idea that anyone, anywhere, should be able to easily and securely send and receive Bitcoin.
Today, we offer a trusted and easy-to-use platform for accessing the broader crypto economy. Coinbase is listed on Nasdaq under the ticker symbol COIN.
Visit coinbase.com or review our stablecoin whitepaper for more information on USDC.
To start using a more efficient form of dollars, log into your Coinbase.com, Coinbase Prime, or Coinbase Exchange account.
If you are an institutional client, you can also review our USDC overview documentation for Coinbase Prime and Coinbase Exchange.
*Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.
**This feature may not be available to all regions. No commission fees attributed to Coinbase will be charged until further notice. However, spread, and processing fees charged by third-party processors, will continue to apply.
This is a paid promotion on behalf of Coinbase and does not necessarily reflect the views of loveMONEY.
Disclaimer: Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service.
Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.
Content is for informational purposes and is not investment advice. Past performance is not indicative of future results. Investing in cryptocurrency comes with risk.