Luno recently announced that it had added USD Coin (USDC) to its list of cryptocurrencies. This addition brings the number of available cryptocurrencies on the exchange to six.
USDC as a Hedge Against Local Currency Volatility
According to Luno, listing USDC will give users access to a currency that they can use in place of volatile local currencies. Due to the fact that the US dollar backs the coin on a ratio of 1:1, USDC is stable and investors can make use of it as a store of wealth. In addition, it is easier to send USDC across borders and lend and borrow it in the DeFi markets. Likewise, with a stablecoin like USDC, you do not have to deal with financial institutions, hence making transactions faster and less costly.
Marcus Swanepoel, CEO and founder of Luno said: “Broadening our platform with the addition of USDC is an exciting move for us and our users. With Bitcoin and others, including Ethereum, reaching all-time highs, cryptocurrencies are in the limelight, and the opportunity is certainly ripe for investors and traders to take advantage. We are under no illusion that cryptocurrencies like Bitcoin and Ethereum remain a volatile currency option and by introducing USDC, we want to empower our users to hedge against volatility during market dips. Introducing this currency will be key for our customers to keep their funds on the platform meaning their money will be there and ready for them to quickly and easily trade or invest, whenever they are ready to do so.”
Today, Luno customers can instantly buy USDC on the exchange. But what is USD Coin (USDC)? In simple terms, USDC is a digital dollar stablecoin that is backed 1:1 by US dollars held in regulated financial institutions. USDC happens to be the second-largest dollar stablecoin after Tether USD (USDT) but provides more transparency that its pioneering predecessor.