South-African based crypto exchange, Luno, has listed USD Coin (USDC) on the platform allowing users to buy, sell, and store crypto on Luno while avoiding the volatility that comes with crypto.
In a blog post, Luno revealed that the decision to go with USDC over other stablecoins is based on a number of factors, particularly when it comes to safety.
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SEE ALSO: South African Exchange Luno Introduces Free and Express ZAR Withdrawal Fees
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USDC is apparently the first stablecoin on the exchange.
A quick glance on the exchange shows the following pairs currently available for USDC:
- BTC / USDC
- ETH / USDC
Some of the reasons for using USDC and not another stablecoin include:
- Its market capitalization of over $5 billion
- USDC is fully collaterized and held on a 1:1 ratio with the U.S. dollar
- Its issued by financial institutions that operate with the highest standards of corporate governance
- Full transparency with monthly reports available online to anyone who wishes to view them
To get USDC on Luno:
- Select a USDC trading pair on Luno and place an order to automatically create a USDC wallet
- Manually add a USDC wallet to your account
A recent report by the blockchain and crypto analytics platform, Glassnode, shows that USDC is seeing massive exchange inflows by over 112% in January 2021 alone.
The ongoing legal woes with Tether USD (USDT) have also resulted in traders potentially seeking alternative stable tokens against the risk of USDT losing its peg.
Stablecoins like USDC are usually used to hedge against volatility during big market movements. They also enable users to hold, deposit, and withdraw funds from an exchange at no fees.
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RECOMMENDED READING: Paxful, Africa’s Largest P2P Platform, Officially Adds USDT Tether Trading
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