A new API has been rolled out by Circle, the company behind the second most common stablecoin USD Coin, that will enable the seamless transfer of USDC to USD through automated clearinghouse (ACH) systems.
Derivatives and futures specialist FTX, aiming to speed up USD settlement procedures on behalf of the customers, will be the first exchange to implement the new API.
As cointelegraph.com reported, in a blog post, project manager Gee Chuang described how by introducing interoperability between payment rails, such as card, wire and blockchain transfers, Circle’s ACH API enhances connections between the fiat world and the digital world. USD funds can be easily transferred between banks and blockchains using the API, with processing traditionally done manually, now automatically.
Circle has partnered with Plaid, a company specializing in security and verification of online accounts, to provide a process to streamline the transfer of USD/USDC through Circle. Said Chaung: “This process prevents common errors like mistyping bank accounts or routing numbers and ensures greater user security, while reducing fraud reversal risks. No digging around for numbers, no clunky codes, no switching between applications during the process.”
Some editions of ACH payment processing are used by more than 50 countries, including the EU, the United States, the United kingdom, China, Japan, and South Korea. In order to process crypto-related payments across 30 countries covered by their network, Circle has also partnered with Visa.
The USD Coin is primarily an Ethereum-based token that can be exchanged on a 1:1 basis for US dollars and is backed by a periodically audited asset reserve. Launched in October 2018 as an alternative to Tether, around USDC 5.4 billion is currently in circulation, making it the second largest market cap stablecoin, after USDT.