Circle’s latest USDC API is the outcome of advances in crypto technology and regulation, creating a connection between crypto and traditional finance.
A new API has been launched by Circle, the company underlying the second greatest common stablecoin USD Coin, allowing the seamless transfer of USDC to USD through automated clearinghouse (ACH) systems.
Derivatives and futures specialist FTX, aiming to accelerate USD payment procedures in favor of their customers, is the first exchange to implement the new API.
In a blog post, project manager Gee Chuang explained that by incorporating interoperability between payment rails, such as card, wire and blockchain transfers, Circle’s ACH API strengthens interactions between the fiat world and the digital world in a blog post. USD funds can be conveniently distributed between banks and blockchains using the API, with handling historically handled individually, now automatically.
Circle has collaborated with Plaid, a company specializing in security and authentication of online accounts, to provide a process to modernize the transferring of USD/USDC via Circle. Said Chaung:
“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.”
Multiple models of ACH payment processing is used by over 50 nations, along with the EU, the United States, the UK, China, Japan and South Korea. Circle has also collaborated with Visa in 30 countries protected by their network to handle crypto-related payments.
The USD Coin is predominantly an Ethereum-based token that can be traded on a 1:1 basis for US dollars and is supported by a regularly audited capital fund. Launched in Oct. 2018 as an alternative to Tether, roughly USDC 5.4 billion is currently on the market, rendering it the second largest market cap stablecoin, following USDT.
Demand for USDC is still at an all-time high during the first three weeks of the new year, breaking weekly volume records. USDC is also a stablecoin popular amongst DeFi traders, with platforms such as Uniswap, Curve, and Compound accounting for hundreds of millions in daily trading volume, along with being extensively used in Binance and Coinbase.
Jeremy Allaire, the Circle CEO, has long been a supporter of digital currency space convergence with conventional finance, pleading to the U.S. Treasury Department in Dec. 2020 to enable the partnership of the crypto industry in the phase of regulatory growth.
Allaire anticipated that future developments in blockchain technology would facilitate widespread acceptance at a fintech festival prior to that month placing its possible benefits in the hands of hundreds of millions, if not billions of customers