Don’t fret. We’ve compiled a FAQ for you below—dive in and explore.
USDC or USD Coin is a stablecoin that’s always priced at $1. USDC issues tokens on 14 blockchains including Ethereum, Algorand, Stellar, and Solana.
USDC is either used for hedging risks against crypto market fluctuations or in various trading pairs. USDC is also used by crypto companies to pay salaries for their employees.
Circle keeps its price stable by backing its USDC tokens with an equivalent amount of traditional fiat currencies held in a designated bank account. The company released this article to further commit itself to transparency and ensure that each and every USDC token remains 1:1 backed by the US dollar
USDC is maintained and regulated by Circle, a peer-to-peer payments technology company, headquartered in Boston, Massachusetts. Circle was founded by Jeremy Allaire and Sean Neville in October 2013.
You can store USDC tokens in your CoinSmart account.
Most recent update: October 22, 2021
This overview provides a summary of certain risks involved trading any crypto asset and is not exhaustive. Investors are encouraged to conduct their own research prior to trading any crypto asset.
No securities regulatory authority has expressed an opinion about the Crypto Contracts or USD Coin, made available on the CoinSmart Platform, including an opinion that USD Coin is not itself a security and/or derivative. Changes to applicable law may adversely affect the use, transfer, exchange or value of your crypto assets and such changes may be sudden and without notice.
Prior to listing USD Coin on the CoinSmart Platform, Simply Digital Technologies Inc. (SDT) conducted due diligence and determined that USD Coin is unlikely to be a security or derivative under Canadian securities legislation. Our analysis including reviewing publicly available information concerning:
Like all crypto assets, there are general risks associated with USD Coin including: volatility risk, liquidity risk, short history risk, demand risk, forking risk, code defects, regulatory risk, electronic trading risk and cyber security risk. For additional information of general risks associated with crypto assets, you may refer to the Risk Statement. Further, USDC is a stablecoin issued by Circle Internet Financial, LLC (Circle). Each USDC is redeemable for one US dollar. The reserves backing USDC are segregated and the sufficiency of such reserves is independently verified by Grant Thornton LLP: https://www.centre.io/hubfs/pdfs/attestation/Grant- Thorton_circle_usdc_reserves_07162021.pdf. Approximately % of the reserves backing USDC are cash and cash equivalents. Other reserves include certificates of deposit, commercial paper, corporate bonds and other assets that, while liquid, are not as liquid as cash and cash equivalents. The reserves backing USDC are held at regulated financial institutions, however, Circle is not, itself, a regulated financial institution.
As a reminder, this Crypto Asset Statement is not intended to be exhaustive of all risks associated with trading USD Coin and we encourage you to conduct your own due diligence to determine whether trading USD Coin is right for you.
SDT is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re Simply Digital Technologies Inc. dated October 21, 2021 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.