Robinhood, the second-largest stablecoin USD exchange allowing clients to trade coins: all the details

Robinhood, Circle to Allow Customers to Trade Second-Largest Stablecoin USD Coin: All Details

Robinhood Markets Inc. said on Wednesday that it has joined forces with crypto firm Circle to provide customers with the option to buy and sell stablecoin USD Coin (USDC) on the brokerage’s platform.

The addition of USDC brings the total number of assets available for buying and selling through Robinhood Crypto to 17 and is the first stablecoin listed on the app, the company said.

USDC, which is mainly issued by Circle, is the second largest stablecoin with $50 billion (approx. Rs. 4,09,540 crore) in circulation today. USDC reserves are backed entirely by cash and short-dated US Treasuries, with a 1:1 peg to the US dollar, according to the company.

Customers connected to the brokerage can withdraw USDC on Ethereum and Polygon through Robinhood Wallet, which launched yesterday in beta to 10,000 iOS users on a waiting list.

Both companies are working closely to develop and create custom educational programs to teach customers the basics about USDC and CIRCLE.

Robinhood’s partnership with USDC comes amid a crypto rout and collapse of major stablecoins in recent months that have come under intense scrutiny.

Major stablecoin TerraUSD broke its 1:1 peg against the dollar and fell as low as $0.67 (roughly Rs. 50) in May, sparking a steep fall in bitcoin that wiped billions of dollars out of the cryptocurrency.

This led to sector-wide turmoil that led to crypto lenders Celsius and Voyager filing for bankruptcy, and Coinbase, BlockFi. And Crypto.com is laying off thousands of employees.

Issuers of these virtual currencies whose value is based on traditional currencies would face bank-like regulation and oversight under a draft bill by senior US House lawmakers, a source familiar with the matter told Reuters in July.

© Thomson Reuters 2022


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