Introducing US Benchmark Coin (USBC): A Stable, Compliant Digital Dollar
Stablecoins continue to make headway in the race to become crypto’s killer app, with many proponents suggesting that they have already done so. With a total market cap exceeding $170 billion, and 24 hour trading volumes regularly surpassing $50 billion, stablecoins are seeing increased adoption across institutional and retail alike. This growing asset category provides elegant solutions to the evolving needs of the modern digital economy, with the potential to change the way we look at cross-border payments, commerce, savings, and more.
Now, amidst this thriving ecosystem, a new contender has emerged: US Benchmark Coin (USBC). Designed as a digital US dollar and engineered for regulatory compliance, USBC is issued by Universal Ledger Ltd. Running on the Universal Ledger Network, a permissioned version of Ethereum powered by Omnumi, USBC is built to meet both current regulatory demands and future legal frameworks.
At its core, USBC is designed to maintain a 1:1 peg with the U.S. dollar, with reserves composed of USD bank deposits, treasury bills, reverse repos, and other liquid assets. Currently in development, USBC is set to launch a transparency page, offering real-time updates on its reserve composition and value. This feature will provide users with insights into the assets backing USBC tokens in circulation, working to maintain confidence in its reserves.
Financial Inclusion
USBC aims to promote financial inclusion while maintaining strict regulatory compliance. The project’s multi-tiered identity verification system (Bronze, Silver, Gold) requires that users undergo KYC (Know Your Customer),sanctions screening and other risk assessment procedures, allowing for different levels of access to the platform. As users progress through verification tiers, they unlock additional features and services offered by the Universal Ledger Network.
Universal Ledger Ltd. handles the issuance and redemption of USBC tokens, with Web3 users required to complete identity verification to mint, hold, or redeem USBC.
Feeless Transactions and Early Access for Upholders
USBC is an ERC-20 token, issued on the Universal Ledger Network. Thanks to the Universal Ledger Network, users can transfer USBC without incurring any transaction costs, making it a highly attractive option for frequent transfers, remittances, and other use cases where fees could otherwise add up.
The launch of USBC on Uphold marks the first opportunity for users to engage with this stablecoin, giving Upholders exclusive early access to this emerging digital dollar solution.
Network Security
The network leverages security protocols such as OAuth2, key-based authentication, and SSL/TLS encryption to protect data in transit. Additionally, secrets-based encryption aims to ensure that sensitive information remains secure when at rest, adding further layers of security.
As the regulatory landscape shifts, USBC’s underlying infrastructure is designed to adapt, with its digital identity system and risk engine capable of evolving to meet new compliance requirements. This approach looks to future-proof architecture, allowing USBC to remain a secure and compliant option for digital asset users.
A Powerhouse Team
Greg Kidd, the Co-Founder and Chairman, brings vast experience in the fintech world, having been an early investor in companies like Twitter, Coinbase, Ripple, and Square. Greg is also the founding partner of Hard Yaka, an investment firm focused on decentralized technologies. His past roles include serving as Chief Risk Officer at Ripple and working with the Federal Reserve, giving him a deep understanding of both the technology and the regulatory aspects of digital finance.
Joining him is Kirk Chapman, the Co-Founder and CEO, who has over 20 years of experience in banking technology and payments. Before co-founding USBC, he held roles such as Head of Strategy at Galileo and advisor to the CEO of SoFi. As the co-founder and CEO of Omnumi, Kirk has been instrumental in developing the technology behind the Universal Ledger Network, ensuring that USBC operates on a secure and scalable blockchain infrastructure.
Moving Forward
The launch of US Benchmark Coin looks to add a new dimension to the stablecoin market, offering a dynamic, secure digital dollar that can accommodate for the evolving regulatory landscape. We’re excited for Upholders to be the first to try this novel stablecoin solution, and look forward to continuing to contribute to this innovative industry vertical and beyond!
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