Where did USD Coin come from?

by Team Luno
· 1 minute read

USDC was launched on 26 September, 2018. It is the first stablecoin to be minted and governed by member organisations of the Centre Consortium, a membership-based framework and governance scheme. The Centre Consortium was founded by Coinbase, a US-based cryptocurrency exchange, and Circle, a blockchain-focused financial services and payments company.

Circle was founded in 2013 by the entrepreneurs Jeremy Allaire and Sean Neville. They have raised over $135 million over 4 funding rounds from a list of investors which includes Goldman Sachs. Circle is a licensed Money Transmitter – US money service businesses that must comply with federal laws and regulations. Before the issuance of USDC, the equivalent amount of USD is held by one of Circle’s accredited partners. As a result, the issuer represents that all USDC tokens are regulated, transparent and verifiable.

Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. It was named after the Bitcoin (BTC) coinbase transaction that rewards miners for validating blocks. It’s one of the oldest and largest cryptocurrency exchanges, having supported tens of millions of users since its launch. Coinbase is registered as a Money Services Business with FinCEN.

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