The ‘vanilla’ appeal of USDC

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Hello reader,

Did I blink for too long? It certainly feels like I did because I looked away for a minute, and algorithmic stablecoins, TerraUSD (UST) in particular, was out of fashion and favor. Being a crypto greenhorn, I was still getting used to ideas of celestial-kind names like Terra and Luna being used for currencies.

If you are wondering what comes next in the sector, today’s premium story is specially for you. This deep dive charts the ascent of the USD Coin (USDC), a stablecoin that customers of three major fintech giants can now use.

Talking about all things money, if you are fundraising or know someone who is, fill out this form, and we’ll help you spread the word.

Today we look at:

• USDC, the new face of crypto payments
• Rebel Foods is taking India’s Smoor to chocolate enthusiasts in Southeast Asia
• Other newsy highlights such as Tencent’s Pony Ma expressing frustration over China’s zero-Covid policy and Zilingo’s global head for public relations and communications stepping down.

Premium summary

Plain vanilla for the win

Image credit: Timmy Loen

USDC, issued by US-based peer-to-peer payments company Circle, is seen as plain vanilla when compared to riskier or more exotic currencies like DAI, Iron, or TerraUSD (UST). But the recent collapse of UST means that while USDC may not be the most attractive option for crypto investments, it is turning out to be the de facto cryptocurrency for widespread adoption.

• Support system: UST isn’t actually backed by US dollars or US dollar-denominated assets, but USDC is. These reserves are kept with leading regulated financial institutions in the US, including BlackRock and the Bank of New York Mellon.

• Panic button: Those in the crypto industry believe the collapse of UST has created a contagion effect for stablecoin-related businesses and will have a huge long-term impact on the crypto industry as a whole. For example, investors of Tether (USDT) withdrew over US$7 billion from the stablecoin in a panic sell after it briefly de-pegged from the dollar about a week ago.

• Time’s on its side: So far, USDC has been used as a payment option only for merchant settlements because it allows payouts to sellers to be completed in real time, rather than taking one to three business days.

Read more: Move over UST, USDC’s the new face of crypto payments

Rebel Foods and the chocolate factory