USD Coin was the first implementation of CENTER's fiat-back stablecoin network and was launched on Ethereum as an ERC20 compliant token. USDC relies on a proof-of-reserves system to ensure that its reserves match the tokens in circulation. The CENTER contract manages the minting and redemption / burning of stablecoins that can be used for both exchange and wallet interoperability use cases. Customers who on-board through a stablecoin on-ramp, such as a web application created and maintained by a licensed CENTRE token-issuing member, can transfer fiat funds into that CENTRE issuer’s account. The issuer then runs a series of commands on the CENTER network to validate, mint, and validate the fiat token associated with the value of the deposited funds. Customers can then transfer these tokens to another location for use. Redemption is done in reverse order:
A.: Fiat tokens are burned when a customer visits an off-ramp such as a web application maintained by a licensed CENTRE issuing member.
B.: Upon successful verification and validation, funds from underlying fiat reserves would be transferred to the customer’s external bank.
Use of Native tokens in the ecosystem:
USD Coin is a service to tokenize US dollars and facilitate their use over the internet and public blockchains. Besides, USDC tokens can be changed back to USD at any time.