Crypto.com and Circle Partner for Fiat to Stablecoin Transfers
Users can deposit and withdraw US dollars from their bank accounts and receive USD coins (USDC) at a 1:1 ratio in the Crypto.com app and exchange, the company said in a statement.
Kris Marszalek, co-founder and CEO, Crypto.com
key takeaways
- Circle is a principal developer of USDC, which together with Coinbase and the Centre Consortium oversees the standards and protocol for what has become the fastest growing, regulated, fully-reserved stablecoin, it said.
- USDC grew $24 billion in one year when it surpassed a $25 billion market cap on June 22, up 2,400%, and continues to add about $200 million net new digital dollars in circulation each week.
Crypto.com announced it will be joining forces with Circle, a global financial technology firm, to help users transfer fiat, or USD, in and out of the company’s app and exchange platform.
Users can deposit and withdraw US dollars from their bank accounts and receive USD coins (USDC) at a 1:1 ratio in the Crypto.com app and exchange, the company said in a statement.
USDC is a stablecoin, which means it’s backed by a fixed asset that provides the cryptocurrency with more stability. In this case, each USDC is backed by US dollars so for users with a USD bank account, the 1:1 ratio is always redeemable, giving it a stable price.
Circle is a principal developer of USDC, which together with Coinbase and the Centre Consortium oversees the standards and protocol for the fastest growing, regulated, and fully-reserved stablecoin in the market, it said.
USDC grew over $24 billion, up 2,400% in one year when it surpassed a $25 billion market cap on June 22, and continues to add about $200 million net new digital dollars in circulation each week, Circle and Centre Consortium said.
“Despite some recent uncertainty in the crypto economy, the continued growth of USDC is a bullish signal, an indication that users have conviction in the overall market. Rather than moving funds out of crypto altogether via various off-ramps, users continue to rotate their positions into stablecoins and keep those assets ready to deploy on-chain, use them to make payments, or invest for the future,” Center Consortium wrote in a post.
The service requires users to deposit USD funds through a wire transfer and user-specific code via Circle and it will process, store and convert the USD to USDC. Those funds will be available in their crypto wallet on the platform within three business days, it said.
“Historically, transferring fiat into and out of crypto platforms has been an arduous process,” and this partnership is working to provide safe, reliable, and easy money transfer solutions, said Kris Marszalek, co-founder and CEO of Crypto.com.
Founded in 2016, Crypto.com has over 10 million users and is supported in over 90 countries, but the partnership with Circle will be available in a shorter list of European countries and two Asian countries, Hong Kong and Singapore. Meanwhile, Circle’s platform has supported over 100 million transactions worth billions of dollars, with nearly 10 million retail customers, over a thousand businesses, and stores and secures more than $5 billion in digital currency assets, it said.
“This partnership will fuel crypto adoption globally and is another example of how innovators continue to break down barriers between traditional finance and the future of payments,” said Jeremy Allaire, co-founder, CEO and chairman of Circle.
