Introduction

In the rapidly evolving landscape of cryptocurrency, stablecoins have emerged as a new asset class, providing comparably more stability and reliability amidst the volatility within the digital asset space. Among different stablecoins, USDC stands out, offering a secure and transparent digital representation of the U.S. dollar. Bitcoin Suisse has fully integrated USDC into its product offering, providing its clients with a stable store of value for trading and treasury management. Find out more about USDC, trading it and custody solutions at Bitcoin Suisse.

What are stablecoins and why do we need them?

In a market characterized by high volatility, stablecoins offer crypto investors stability and represent an alternative to the volatility of crypto markets. Over the past few years, stablecoins have shown tremendous growth, and, as of writing, increased their total market capitalization up to $150 billion with two of them trading in the top ten with regard to daily trading volume. Representing about 6% of overall crypto market cap, they are among the most traded digital assets in the entire crypto space, with USDC frequently hitting top daily trading volumes. From a macro perspective, stablecoins only represent a tiny fraction of the world’s money supply.

Stablecoins aim to maintain a peg to a government-issued currency or a commodity like gold. Besides commodity-backed, crypto-backed, or algorithmic stablecoins, most stablecoins are collateralized with the corresponding fiat currency, such as USD, EUR, or CHF. Leveraging blockchain technology, they are easily transferable between cryptocurrency exchanges as they offer near-instantaneous 24/7/365 trading and settlement, without relying on conventional centralized payment systems. This leads to more efficient markets thanks to faster arbitrage and no closing hours.

Today, stablecoins are mostly used for trading, lending, transacting, and borrowing crypto assets. Stablecoins allow access to the use case of their underlying asset (for example U.S. dollar), enable low-cost cross border payments and provide an open and global usage, also in emerging markets. With growing adoption, they might lead to more inclusive payment and financial systems. On the flip side, they pose various risks, such as counterparty risk through centralization, intransparency of off-chain assets and market price risks. In the EU, stablecoins are in scope of Regulation on Markets in Crypto Assets (MiCA) while in the U.S., a working group recommended prudential regulation on stablecoins.

Over the last year, there were many public discussions about Central Bank Digital Currencies (CBDCs) and how they could play a role in the financial system in the future. CBDCs can be understood as similar to stablecoins, but unlike stablecoins, they are issued by central banks, representing a digital version of a national currency. CBDCs, at least in Switzerland, are expected to be used by financial intermediaries, permissioned to allow for liquidity optimization.

What is USDC?

USDC is a stablecoin originally built on the Ethereum blockchain and pegged to the U.S. dollar. It is natively supported on over a dozen public blockchain networks. It was launched in 2018 as a collaboration between Circle and Coinbase. USDC is a fully reserved stablecoin, reserves are transparently held in custody by regulated financial institutions. Its advantages include stability, instant settlement, low transaction costs, and global accessibility, making it suitable for various use cases, including cross-border payments and decentralized finance (DeFi) applications.

Stable & regulated – USDC is regulated and fully reserved. Reserves are held at regulated financial institutions with published monthly attestations.

Instant settlement – USDC transactions can settle in seconds worldwide. All day, every day.

Near-zero cost – Global payments can be made for less than a cent, so it’s affordable to send USDC.

Open, global access – Nearly any business or person with an internet connection and digital wallet can send and receive USDC.

Widely used – USDC is readily available on popular exchanges and protocols, and developers are building with USDC.

In essence, USDC embodies a paradigm shift in the world of digital currencies, providing users with a fiat value-based alternative for transactions, investments, and beyond. Its use not only addresses the pressing need for stability within the cryptocurrency market but also heralds a new era of trust and reliability in digital finance.

USDC at Bitcoin Suisse

USDC has been available for trading at Bitcoin Suisse Online since 2018, providing users with over five years of reliable service. Bitcoin Suisse's integration of USDC underscores its commitment to regulated and transparent stablecoins. Trading USDC at Bitcoin Suisse extends beyond specific cryptocurrency pairs, offering flexibility and best execution across all pairs. Learn more about Trading USDC at Bitcoin Suisse here.

Beyond trading USDC at Bitcoin Suisse, clients can store their USDC in piece-of-mind cold storage in the Bitcoin Suisse Vault, an institutional-grade, ISAE 3402 audited and pen-tested storage solution. Learn more about the Bitcoin Suisse Vault here.

Bitcoin Suisse offers its clients crypto asset collateralized loans in USDC, USD, EUR, and CHF to increase capital efficiency or leverage positions against a pledge of crypto assets. Clients of Bitcoin Suisse can also use USDC as collateral for such loans. Learn more about collateralized loans at Bitcoin Suisse here.

At Bitcoin Suisse, our clients have the opportunity to benefit from attractive fixed-income collateralized loans – either in fiat or, in special cases, in crypto assets like USDC. Learn more about P2P loan investments at Bitcoin Suisse here.

Furthermore, Bitcoin Suisse offers crypto salary as a service. The service includes a monthly distribution of crypto salary to employees of the participating employer company. USDC is one of the available cryptocurrencies for crypto salary.

To round up the full-circle-USDC-experience at Bitcoin Suisse, withdrawals are available in USDC. USDC withdrawals are quicker compared to fiat, and are, with the support of over a dozen public blockchains, enhancing accessibility and interoperability.

Conclusion

With increasing growth, adoption, and regulation of crypto currencies, stablecoins have evolved into a significant role within the world of digital currencies and already account for more than 10% of the total crypto market capitalization. Stablecoins are likely primed for further growth in adoption and use cases. And as the cryptocurrency landscape as a whole continues to evolve, USDC remains at the forefront, bridging the gap between traditional finance and the world of decentralized finance.