USD Coin (USDC), commonly referred to as a type of stablecoin, is a type of cryptocurrency designed to maintain price equivalence with the U.S. Dollar by holding $1 in reserve for each USDC in circulation. Launched in 2018 by regulated global financial technology firm Circle, there are currently 50+ billion USDC in circulation. USDC has processed over $5 trillion in transactions since inception.
Circle is registered as a money services business with the US Department of Treasury and licensed under state money transmission licenses, which makes them subject to the same oversight and examination requirements as major US payment institutions like Stripe, PayPal, and Square. The reserves backing USDC are held in the custody and management of leading US financial institutions like BNY Mellon, BlackRock, and US Bancorp. Leading audit firm, Grant Thornton LLP, attests to all USDC reserves on a monthly basis.
For each USDC that is minted (i.e., created), Circle holds $1 in cash or short-term US treasury bonds, which allows them to commit to always redeeming USDC for USD on a 1:1 basis. Circle regularly publishes reports that allow you to see exactly how and where those reserves are held.
USDC in the Eco app
How it works for you in the Eco App:
- When you deposit US Dollars into the Eco app, we leverage Zero Hash’s platform to exchange those US Dollars for USDC on a 1:1 basis.
- Once your US Dollar deposit settles, that equivalent amount of USDC is deposited into an account in your name at Zero Hash and shown in your Eco app balance.
- When you withdraw or spend money from your Eco account, we leverage Zero Hash’s platform to exchange your USDC back into US Dollars for withdrawal to your bank account or payment to a third party, as applicable.