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Luno adds US dollar stablecoin to its current offering
In an official press statement, Marcus Swanepoel, CEO, and founder of Luno comments on the addition of arguably the most stablecoin on the market.
“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.
What does this mean for Luno customers?
As USDC is stablecoin that is tied to the US dollar, it provides Luno customers the opportunity to store their wealth in the world’s reserve currency. The US dollar has showcased consistent dependability when compared to volatile currencies across the 40 countries in which Luno operates.
US stable coin will be offered in addition to the current offerings of Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple XRP.
According to Luno, the coin will be available for instate buy.
Benefits of the US stablecoin
Aside from offering stability, US stablecoin has the following benefits for interested traders:
- US stablecoin is one of the safest and best-regulated stablecoin currently on the market
- It is fully collateralised, which means that its reserves are held on a one-to-one ratio with the US dollar. Essentially this means that for every one USDC, the original issuer of the coin holds 1 US dollar in collateral
- Records of its reserves are audited monthly by Grant Thorton, a leading account firm
Swanepoel points out that stablecoins are less volatile than cryptocurrencies because their prices is backed in a ratio of 1:1 to the US dollar.
‘”Cryptocurrencies like Bitcoin and Ethereum remain volatile currency options. The introduction of USDC empowers our users to hedge against volatility during market dips and ensures they can quickly and easily access funds on the platform when they want to trade or invest.”
Featured image: Marcus Swanepoel , Luno CEO and co-founder (Supplied)