Key Highlights
- Third Stablecoin on Kraken: USD Coin (USDC) joins Kraken's lineup, becoming the third stablecoin available on the exchange.
- Market Position: USDC is the second-largest stablecoin by market capitalization, showcasing its widespread adoption.
Kraken, a leading cryptocurrency exchange, has broadened its stablecoin offerings by listing USD Coin (USDC). This move follows its existing support for Tether (USDT) and Dai (DAI). Initially, USDC trading will be available on:
- Kraken Exchange
- Kraken Pro
- Kraken OTC Trading Service
However, margin trading and Kraken Futures will not support USDC at launch.
Understanding USD Coin (USDC)
Stability and Backing
USD Coin is a 1:1 fiat-backed stablecoin, pegged to the U.S. dollar and maintained by CENTRE, a consortium founded by Circle and Coinbase. Each USDC token is backed by an equivalent dollar held in reserve, ensuring minimal price volatility.
Market Performance
- Market Cap: $463 million (as of latest data)
- 24-Hour Trading Volume: $371 million
👉 Discover how USDC compares to other stablecoins
Kraken’s Strategic Move: Acquiring Circle’s OTC Desk
Kraken recently acquired Circle Trade, the over-the-counter (OTC) arm of Circle, one of USDC’s creators. This aligns with Circle’s shift toward stablecoin infrastructure development. In a statement, Circle’s co-founders emphasized:
"In 2020, we’re focusing on APIs to accelerate USDC adoption—already the fastest-growing full-reserve stablecoin globally."
How USDC Compares to Other Stablecoins
USDC follows the same model as other major stablecoins, including:
| Stablecoin | Issuer | Blockchain | Backing |
|---|---|---|---|
| USDC | CENTRE (Circle) | Ethereum | 1:1 USD |
| PAX | Paxos | Ethereum | 1:1 USD |
| TUSD | TrustToken | Ethereum | 1:1 USD |
All these tokens operate as ERC-20 tokens on Ethereum, ensuring compatibility with decentralized apps (dApps) and DeFi platforms.
👉 Learn more about Ethereum-based stablecoins
FAQs About USD Coin and Kraken
1. Why did Kraken list USDC?
Kraken aims to diversify its stablecoin options, offering traders more flexibility. USDC’s transparency and regulatory compliance make it a strong choice.
2. Can I use USDC for margin trading on Kraken?
Not yet. USDC is currently unavailable for margin or futures trading, but this may change in the future.
3. How is USDC different from USDT?
While both are pegged 1:1 to USD, USDC is known for regular audits and stronger regulatory adherence compared to Tether.
4. Is USDC available globally on Kraken?
Yes, but users should check local regulations, as some jurisdictions restrict stablecoin usage.
5. What’s next for USDC?
Expect tighter integration with DeFi platforms and broader exchange support as adoption grows.
Final Thoughts
Kraken’s USDC listing reflects the rising demand for transparent, regulated stablecoins. With its robust backing and growing ecosystem, USDC is poised to play a pivotal role in crypto trading and decentralized finance.
For traders, this addition means more liquidity options and a trusted alternative to volatile assets. Stay tuned for further developments as Kraken expands its stablecoin services!