Companies other than Coinbase and Circle will now be able to issue and redeem USDC stablecoins by joining the CENTRE Network. The news was announced by the CENTRE consortium, an organization co-founded by Coinbase and Circle.
Prospective USDC issuers must meet a number of criteria outlined by the consortium, including a license for electronic money services, AML and CTF compliance and the ability to custody fiat reserves.
USDC started trading on cryptocurrency exchanges in late September of 2018. According to the CENTRE consortium, more than 795 million USDC have been issued thus far, with more than 470 million USDC being redeemed for fiat currency. As we can see on etherscan.io, 344,525,365 USDC are currently in circulation.
For USDC users, this will ultimately mean more ways of redeeming their USDC for dollars. It could also spur competition between issuers, as they will be able to set their own fee structures.
CENTRE’s future plans
As far as the future of CENTRE is concerned, the consortium says they are looking to bring stablecoins to blockchains other than Ethereum, including both public and private blockchain networks. However, they do not specify which blockchain networks they are considering at this stage. For example, Tether’s USDT stablecoin is spread across Bitcoin (via the Omni protocol) Ethereum and TRON.
In addition to other chains, the project also aims to create stablecoins tied to other currencies besides the US dollar. Eventually, this could lead to an ambitious digital currency that’s backed by various reserve currency tokens:
“Once a variety of currencies are supported by CENTRE’s fiat tokens, a natural next step is to imagine a new global digital currency that is backed by those reserve currency tokens, with a basket structure chosen by CENTRE but based on a GDP and Balance of Trade informed allocation. We expect Bitcoin to also be a reserve currency asset in such a basket token, as Bitcoin grows in importance as a global non-sovereign store of value.”