This morning, the popular stock trading app Robinhood added support for trading Circle’s USD Coin (USDC). This makes it the first stablecoin that can be purchased by retail investors through its platform.
Robinhood Chooses USDC
In 2018, Robinhood became the first brokerage platform to enable the trading of cryptocurrencies on its platform. It has been consistently adding tokens over the course of time.
With the recent addition of USDC, the Robinhood app now supports trading in a total of 17 different cryptocurrencies.
Chris Koegel, head of investor relations for Robinhood, identified cryptocurrency trading as one of the company’s three key goals. He made the comments during the company’s most recent earnings call. The other two primary focuses are brokerage and money services.
According to the company, its goal with regard to cryptocurrencies is to become “the most trusted on-ramp to the decentralized web.
“Our users have expressed their desire for us to add other cryptocurrencies to the site,” they said.
However, it is unclear how adding USDC could potentially conflict with Robinhood’s reliance on payment for order flow as a means of making money.
According to CoinGecko, USD Coin is currently one of the most valuable stablecoins with a total value of $50b. This makes it one of the largest stablecoins by market capitalization.
The price has changed slightly over the course of time, reaching a high of $1.01 and a low of $0.995 over the course of the past week.
Tether (USDT) is the only other stablecoin that has a bigger market value than the USDC, and it was introduced in 2008, four years before the USD Coin in 2014.
The current market value of Tether is 68 billion dollars. Although, it has been losing ground since the collapse of Terra’s algorithmic stablecoin, UST. USD Coin has gained a greater market share than Tether.