CENTRE Consortium Invites More Members to the Network to Boost USDC Stablecoin Use
- CENTRE Consortium, the joint venture of Circle and Coinbase has announced that they are inviting broader membership and industry participation to boost the usage of their stablecoin USDC.
- The stablecoin market is rapidly expanding with many other companies introducing fiat-pegged tokens to help investors hedge against the volatility of cryptoassets.
CENTRE is open for business!
We're inviting broader membership and industry participation. Read about the criteria for becoming a USDC issuer, the inner workings of the network, and future technology development and roadmap. https://t.co/BTfOmFEm8t
— CENTRE (@centre_io) June 13, 2019
Notably, Circle and Coinbase partnered up and formed the Consortium. They launched their stablecoin, the US Dollar Coin (USDC). Since that, the Consortium has been working “to formalize and establish the Centre Network: a membership-based framework and governance scheme for the development and growth of money on the internet.”
USDC is now the second largest stablecoin, only behind Tether, with a market cap of over $300 million. Over $795M of USDC has been issued, and over $470M purchased. Additionally, more than $11.9B has been traded on leading exchanges such as Coinbase, Poloniex, Binance, Bitfinex, and 40 others around the world.
Although, the supply of USDC since its release has been limited until now, as seen in the graph below.
However, the consortium wants to change that now with the anticipated surge of new issuers.
How To Become a New Issuer?
If a person wants to become a new issuer, they will require to “agree to CENTRE’s operating rules and an issuer settlement and liability framework.” These rules range from Licensing, Compliance, Technology and Operations, Custody of fiat reserves and accounting.
The issuers have the option to generate returns on reserve assets allocated to them in accordance with the Consortium’s Investment Policy.
The Future Plans of CENTRE
Apart from the announcement of this news, in the same blog, the consortium laid down their Roadmap. To start off, they want to enable coins to function across multiple chains, including both public and private chains. CENTRE is already in the process of building standards that will work with a diverse, open and heterogeneous ecosystem of chains. They simultaneously want to support new fiat currencies.
Additionally, they want to d build a global currency token basket with “a structure was chosen by Centre but based on a GDP and Balance of Trade informed allocation.” This looks like it will be in direct competition with the upcoming Facebook’s GlobalCoin. They expect Bitcoin to also be a reserve currency asset in such a basket token, as Bitcoin grows in importance as a global non-sovereign store of value.