In the volatile nature of cryptocurrencies, stablecoins have fiat-like stability. They are used as safe havens because their values remain more or less constant. This is because they are pegged to an ancillary asset like a fiat currency or an altcoin. For this reason, such altcoins are called 'stablecoins'.
Tether (USDT) is the market's largest cryptocurrency in this category. Just like USDT, USDC is pegged to the US dollar and operates with a cash reserve corresponding to its amount in circulation. In the rest of the article, let's take a look at the predictions for why USDC will become the world's leading stablecoin in the coming months.
As one of the founding members of USDC, Circle is open to weekly audits. It is also SEC compliant and holds cash reserves and liquid financial instruments with the best guns in finance. Circle is also audited by Grant Thornton, one of the world's leading accounting firms. In contrast, USDT provides quarterly validation of Tether reserves. Unlike USDC, it is audited by UK-based mid-level accounting firm MacIntyre Hudson (MHA). But in June 2022, Tether CTO Paolo Ardoino committed to having its reserves audited by one of the 12 largest accounting firms in the near future.
In addition, Circle takes special care and effort to ensure that USDC is open source and available on all Blockchains. This helps developers easily incorporate USDC as a payment protocol on their websites and apps via a ready-made API. Businesses and entrepreneurs will now find it much easier to transact across borders and allow their international businesses to flourish without someone getting a piece of the pie in transaction fees.
USDC has emerged as the go-to stablecoin for both individuals and businesses due to its global availability, acceptance and trust, which comes with the support of real USD reserves that are checked and updated every week. As part of the organization's founding principles, cash reserves can never be used for any company-related purpose or operation, and Circle has succeeded in ensuring that this principle is upheld.
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