A member-based consortium by Coinbase and Circle to manage USD Coin (USDC).
USD Coin is managed by a consortium called Centre, which is backed by Circle and Coinbase. It’s supposed to be “price-stable” as its value will be pegged to the US dollar. This is different from Bitcoin or other cryptocurrencies that are free-floating.
Centre is a network that is powered by price-stable crypto assets, creating better conditions for global money transfer and foreign exchange. This network allows for the easy transfer of money between people, businesses, and financial institutions all over the world. It is a governed network through which stablecoins are minted, traded, and transferred. Businesses can use its fast and low-cost token-based transactions to easily tap into markets around the globe, without having to make local currency deposits or open numerous bank accounts.
Leveraging blockchain technology, the platform enables fast digital transfers between parties and improves efficiencies in settlement processes among financial institutions. The governance structure gives community members the power to govern their currency while establishing fair rules and bringing new players into the ecosystem.
Stablecoins like USDC are designed for the use case of price stability — for example, as a reliable store of value or unit of account. They are also useful as a medium of exchange when you want to transact in digital, borderless payments without having to accept the volatility risk associated with Bitcoin and other cryptocurrencies.
Both Coinbase and Circle have strong reputations in the crypto-verse, with Coinbase being one of the leading cryptocurrency exchanges in the United States and Circle being a popular stablecoin developer. The latter also happens to be part of Goldman Sachs, which gives the USD Coin a great deal of legitimacy.