Robinhood partners with Circle to offer stable coin USDC

Robinhood partners with Circle to offer stable coin USDC

On Wednesday, Robinhood Markets Inc partnered with Circle to offer customers the option to buy and sell stable coinUSDC on the brokerage's platform.

The addition of USDC brings the total number of assets available to buy and sell through RobinhoodCryptocurrency to 17 and is the first stable coin listed on the app, the company said.

The USDC, which is issued by Circle, is the second largest stable coin with over $50 billion in circulation today. The company says that the USDC reserves are fully backed by cash and short-dated U.S. treasuries, with a 1: 1 peg to the U.S. dollar.

The Robinhood Wallet, which launched yesterday in beta to 10,000 iOS users, allows customers to withdraw USDC on ethereum and polygon.

The two companies are working closely to develop and build custom educational programs to teach customers the basics about USDC and Circle.

Robinhood has a partnership with USDC amid a rout of major stablecoins in recent months that drew intense scrutiny.

TerraUSD, a major stablecoin, broke its 1: 1 peg to the dollar and fell as low as $0.67 in May, causing a plunge inbitcoin that wiped away billions of dollars from cryptocurrencies.

It resulted in a sector-wide turmoil that led to Celsius and Voyager filing for bankruptcy, and Coinbase, BlockFi, laying off thousands of employees.

The issuers of virtual currencies whose value is pegged to traditional currencies would face bank-like regulation and oversight under a draft bill from senior U.S. House lawmakers, a source familiar with the matter told Reuters in July.