USDC on Cronos chain is a bridged asset with USDC reserves custodied by Crypto.com exchange. USDC is a centralized stablecoin backed by USD reserves held by a licensed custodian (Circle).
USDC is a large-cap, fully collateralized asset. This asset depends on two centralized entities for custody services. USDC on Ethereum is backed 1:1 by USD reserves held with a licensed custodian (Circle). USDC on Cronos is then backed by USDC custodied by Crypto.com. USDC is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1. The asset has an uncapped supply but has inflation control or burn mechanisms in place.
USDC is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value.
USDC is a stablecoin that usually trades within 20bps of its peg to USD, which makes it a solid store of value. USDC is fully redeemable for its USD reserves, providing an effective mechanism to retain the peg to $1.
USD Coin (Cronos) has no dependencies.
USDC launched on the Ethereum mainnet in September 2018 as a partnership between Circle and Coinbase through the co-founding of the CENTRE Consortium. Customers on Coinbase with USD accounts can exchange 1 USDC for 1 USD and vice versa. USDC are issued by financial institutions and established fintech firms who have met its membership criteria.
USDC are backed 1:1 by USD reserves held with a licensed custodian (Circle). The process of minting USDC tokens involves interacting with CENTRE contracts which manage the minting and burning of USDC. First, a user sends USD to a licensed token issuer's bank account. Second, the issuer uses the USDC smart contract to mint an equivalent amount of USDC. Third, the newly created USDC are sent to the user's on-chain address, while the deposited USD are held in reserve. The process for redeeming USDC for USD is just the reverse process.
USDC is a centralized stablecoin that is perceived as safer and more transparent than USDT as its reserve composition only consists of cash and short-term U.S. government bonds. USDC regularly undergoes audits and publishes monthly reserve reports and attestations that prove the amount of USD reserves are greater than the amount of USDC in circulation. Nonetheless, USDC has the ability to "blacklist" any of its associated addresses at will. When a USDC address is blacklisted, it can no longer receive USDC and all of the USDC controlled by the address can no longer be trasnferred on-chain.