Circle, the company behind the second most popular stablecoin in US dollars, has unveiled a new API that will allow USDC to be seamlessly converted to dollars through its automated clearinghouse (ACH) systems.
The first exchange to implement the new API will be FTX, which specializes in financial derivatives and futures contracts and wants to expedite USD settlement processes on behalf of its clients.
In his blog post, project manager Ji Chuang described how the Circles ACH API improves connections between the world of cash and the digital world by offering interoperability between payment cores such as card, wire, and blockchain transfers. Using the API, USD funds can be easily transferred between banks and blockchain with traditional manual processing, now automatically.
Circle has partnered with Plaid, an online account security and verification company, to help optimize Circle’s USD / USDC transfers. Chung Sa:
“This process prevents common mistakes, such as entering bank accounts or routing numbers, and provides greater security for the user while reducing the risk of fraud. No digging through the numbers, no grouped codes, and no switching between apps during the process. ”
More than 50 countries use some versions of ACH payment processing, including the European Union, US, UK, China, Japan, and South Korea. Circle has also partnered with Visa to process cryptocurrency-related payments in the 30 countries that their network covers.
USD Coin is an Ethereum-based token that can be exchanged for USD at a 1: 1 ratio and backed by a regularly audited pool of assets. It was launched in October 2018 as an alternative to Tether and is currently around $ 5.4 billion in circulation, making it the second largest fixed market cap after USDT.
Demand for the USDC was strong and hit records for weekly volume in the first three weeks of the new year. Besides being heavily used by Binance and Coinbase, USDC is also a consistent favorite among DeFi traders with platforms like Uniswap, Curve, Compound and hundreds of millions of daily turnovers.
Circle CEO Jeremy Aller has long been a proponent of integration between the digital currency space and traditional finance, and in December 2020 asked the US Treasury to allow the crypto industry to collaborate on the regulatory process.
At the fintech festival earlier this month, Aller predicted that the upcoming breakthroughs in blockchain technology would drive widespread adoption, transferring potential benefits “into the hands of hundreds of millions, if not billions of users.”