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Robinhood Markets (NASDAQ:HOOD) has formed a partnership with Circle that will allow its customers to buy and sell USCoin (USDC-USD) on Robinhood, the fintech said Wednesday.
The partnership will also provide in-app educational modules, allow customers to earn rewards, and will improve settlement efficiency. It also allows transfer and use of USDC on the new Robinhood (HOOD) Wallet, currently in beta.
As part of the alliance, Robinhood (HOOD) will use Circle’s payment infrastructure to make settlement more efficient across Robinhood and between its counterparties. The work will begin immediately and become fully integrated in early 2023, the company said.
“USDC will play a crucial role in helping our customers get their dollars into web3 through a trusted and transparent source,” said Johann Kerbrat, chief technology officer and general manager of Robinhood Crypto (HOOD). “It’s a crucial addition to our product to enable our customers to experience web3 dapps and defi, without exposing themselves to volatility within the market.”
Last week, HOOD added USDC to its cryptocurrency offerings, and is the first stablecoin on the platform. A stablecoin is a digital token that has its value tied to a reference asset such as a fiat currency like the U.S. dollar.
USCoin (USDC-USD) is issue by Circle and is fully backed by cash and short-dated U.S. Treasurys, Circle said. The company is a licensed money transmitter in many states and conducts annual audits for USDC reserves.
Earlier this month, Robinhood (HOOD) said it’s working on allowing users to move cardano (ADA-USD) tokens in and out of its crypto platform.
Image and article originally from seekingalpha.com. Read the original article here.