USD Coin (USDC) on Hedera is a stablecoin brought to you by Circle and Coinbase, members of the Centre Consortium which provides leading globally trusted standards for stablecoins.
USDC minted on Hedera
DAVID PUTH
CEO, Centre
Industry
Financial Services
Use Case
Decentralized Finance & Payments
Overview
USD Coin (USDC) on Hedera is a stablecoin brought to you by Circle and Coinbase on the Hedera network, adopting fast settlement times, low fees, and scalable transaction performance.
Challenge
Hedera required on and off-ramps, in the form of a stable fiat currency, for use by decentralized finance applications and end-users. The currency must be minted natively on Hedera to ensure ease-of-use when exchanged with fungible and non-fungible tokens.
Solution
USDC on Hedera brings the benefits of a fiat-backed currency to end-users and applications built on the Hedera network. It offers high transaction scalability, 3-second settlement times, and low, predictable transaction fees of $0.0001 USD paid in HBAR.
As more goods and services are tokenized, smart contract platforms will become fundamental building blocks of value exchange. Centre’s open-source and transparent stablecoin framework allows fiat to interact with smart contracts, giving developers a viable way to use real-world currencies in decentralized applications. Centre stablecoins are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency. You can learn more about stablecoins in our article “What is a stablecoin?”.
The transfer of fungible and non-fungible tokens on various blockchain networks can prove to be expensive and time-consuming. Congested networks, with limited scalability, bloat the price of transaction fees and make it economically infeasible to transact in a stable fiat-backed coin, much less any other type of token. And proof-of-work blockchain brings slow token settlement times and probabilistic finality, preventing real-time processing of payments.
USDC on Hedera offers the benefits of a fiat-backed currency to end-users and applications built on the Hedera network, with the promise of real-time settlement with transaction finality and enterprise-grade scalability. By using USDC on Hedera, applications can expect high transaction scalability, 3-second settlement times, and low, predictable transaction fees of $0.0001 (regardless of the amount of USDC being transferred).
The benefits of USDC on Hedera contribute to a flourishing ecosystem of applications that offer real-time US dollar stablecoin payments. And because transaction fees on Hedera are predictably priced at $0.0001, micropayments become an economically viable reality.Initial applications on Hedera utilizing USDC for payments and micropayments include Calaxy, Dropp, TOKO, and TaskBar. With the influx of decentralized finance, NFT, and network bridge applications building on Hedera, including SaucerSwap, HashAxis, and Hashport, the usage of USDC on Hedera is positioned well to increase substantially over time.
Hedera is not affiliated with, and does not sponsor or endorse this project.
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