Withdrawals of USD Coin (USDC) have now been enabled on the digital asset exchange platform Crypto.com, which means that users can withdraw the stablecoin and receive US dollars in a one-to-one ratio directly to their bank account.
The announcement comes just over a month after the platform added support for USDC deposits as a result of a new partnership with Circle, the stablecoin’s issuer. The collaboration allowed Crypto.com users to deposit fiat currency into their trading accounts in order to receive an equivalent amount of USDC.
USDC, first released in September 2018 by Goldman Sachs-backed Circle, is a popular USD-pegged stablecoin that crypto investors can use to trade against major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) (ETH). The stablecoin is currently supported in over 50 different trading pairs with other digital assets on Crypto.com.
Fiat currency-pegged stablecoins have grown in popularity in recent years as a means of establishing seamless fiat-to-crypto payment gateways on cryptocurrency exchanges.
The plethora of USD-pegged assets on the market – including USDC, Binance USD (BUSD), and Paxos Standard (PAX) – were anticipated by Tether, the veteran and still most liquid stablecoin (USDT). Previous controversies surrounding the latter’s lack of transparent accounting for its U.S. dollar reserves prompted issuers of later stablecoins to compete to prove their credentials with regulators as scrutiny of the stablecoin sector, particularly in the United States, intensifies.
To that end, the multi-national tax advisory and consultancy firm Grant Thornton recently audited USDC, the second-largest stablecoin after USDT. Circle, a USDC issuer, also announced plans to go public on the New York Stock Exchange this summer, following a merger with a special purpose acquisition company (SPAC).