On Tuesday, Robinhood, a US brokerage service that simplifies stock trading and investing, included Circle's USDC stablecoin to its selection of cryptocurrencies for individual investors.
With this change, the Robinhood system now offers USD Coin (USDC) as its first stablecoin for trading. According to the company, one of the most widely used open-source blockchains, the Polygon and Ethereum networks are currently accepting transactions on the platform.
The platform's decision to add USDC to Robinhood is part of its aim to expand internationally, where stablecoin adoption is increasingly widespread among users from all around the world.
With a total market capitalization of $50.1 billion, USDC ranks second among stablecoins. With a market valuation of $68 billion, Tether is the biggest stablecoin, albeit it has begun making a loss to USDC ever since Terra's algorithmic UST stablecoin failed.
Robinhood investors won't be able to capitalize from USDC because it is a stablecoin. The organization, which has been concentrating primarily on cryptocurrency growth, has set the IPO as a target.
Users will now be able to convert their stablecoin balances into money and utilize that money to purchase stocks on Robinhood thanks to USDC's support. Additionally, consumers will be able to utilize the stablecoin to exchange their fiat money for non-volatile cryptocurrency without opening a brokerage account with another business.
In 2018, Robinhood introduced cryptocurrency trading on its system. The company has been steadily growing its platform with more digital assets over time. With the recent launch of USDC stablecoin, users can now trade 17 different cryptocurrencies through using Robinhood app.
Listing on Robinhood Could Benefit USDC
The advent of the Robinhood system will have a huge positive impact on USDC stablecoin. Robinhood has a huge consumer demographic (15.9 million users online in 2022), and many of these are less aware with stable cryptocurrencies than renowned volatile crypto assets like Bitcoin, Ether, and such. The new listing would also aid USDC in resolving the current issues the stablecoin is encountering.
The recent media attention given to USDC hasn't been favorable for its growth. Circle, the organization behind the well-known USDC stablecoin tied to the dollar, froze 75,000 USDC owned by customers with connections to Tornado Cash at the beginning of last month. This followed the United States. The open-source project Tornado Cash, which enables users to conceal their transactions, has been banned by the Treasury Department.
Subscribers who wish to retrieve their locked USDC in the Tornado Cash private transaction application are now required to submit an application for an OFAC license, which would grant them permission from the Office of Foreign Assets Control (OFAC).
Earlier at the beginning of the month, USDC also experienced some ambiguity with the Binance cryptocurrency exchange. Binance revealed plans to transfer client holdings in competing stablecoins like USDC into the company's own stablecoin on September 6. (BUSD). The action was perceived as Binance's attempt to seize market share for USDC in favor of its own BUSD stablecoin.
The biggest cryptocurrency exchange in India and a Binance affiliate, WazirX, also made intentions public yesterday to stop accepting deposits for the stablecoins USDC, USDP, and TUSD and to exchange users' existing balances to Binance's BUSD, which is backed by USD.
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