The USDC supply on Ethereum has surpassed Tether’s supply.
USDC is a stablecoin that is pegged to the US dollar. It is not a cryptocurrency and its price is linked to the USD. This means that it can be used in transactions like regular digital currencies, but it will maintain its value at all times.
Tether has been the most popular stablecoin since at least 2016. It originally shared the market mainly with the stablecoins BitUSD and NuBits (USNBT). It was issued in 2014, USDC appeared on exchanges in 2018 and was promoted as a more transparent and more regulated competitor of Tether, whose creators have some regulatory issues.
Although USDT is still the most popular stablecoin with a total supply of 78.5 billion, almost 50% of the supply, or 38.7 billion tokens, is located on the Tron network. USDT can also be found in BSC, Solana, Huobi ECO Chain, Avalanche, Polygon and 13 other Layer 2 chains or solutions.
The current total supply of USDC is 45.7 tokens. Stablecoin is available in 21 chains or Layer 2 solutions.
Doubts about legal issues in the context of Tether’s operation have caused the public image of the project to deteriorate over the years. The controversy is concerned, especially the security of the stablecoin and the way reserve funds are managed.
The release of two consolidated reports on Tether’s financial reserves by accounting firm Moore Cayman in 2021 failed to reassure skeptics. In its latest financial report, Tether revealed that, in addition to other assets supporting USDT, it holds $30.8 billion in unspecified securities.
The circle is more transparent about its reserves. In August 2021, Coinbase CEO Emilie Choi said THAT USDC reserves would be completely converted into cash and U.S. Treasury bonds. This finally happened on October 27, 2021.
Coinbase is a close circle partner that helped launch USDC in October 2018. Circle is also supported for USDC by Bitmain, China Everbright Bank and eight other entities.
It’s worth mentioning that Circle CEO Jeremy Allaire backed the Joe Biden administration’s November 2021 proposal to treat stablecoin issuers similarly to banks. He also attended a congressional hearing with several top cryptocurrency industry leaders in December 2021 to discuss the direction of the policy with the Financial Services Commission.
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