The Launch of New On-Chain Solutions by USD Coin (USDC) Issuer Circle
Circle, the stablecoin company behind USD Coin (USDC), has introduced two new on-chain solutions to address the issue of theft and illicit activities in the crypto space. CEO Jeremy Allaire announced these solutions in response to reports of billions of dollars in losses due to attacks on decentralized protocols. The irreversible nature of crypto transactions makes it difficult to recover stolen assets.
The Recoverable Token Standard
Allaire published the “Recoverable Token Standard,” which allows for the revocation and recovery of ERC-20 tokens. This standard complements the base layer of money transmission and aims to enhance the reversibility of transactions. It is open-source, and Circle encourages crypto participants to review its code on GitHub.
R-Pools: Insurance and Liquidity Model
Circle also introduced R-Pools, an insurance and liquidity model for Recoverable Tokens. These pools provide a cushion for the new token model, allowing holders to redeem their assets through a crypto insurance fund.
Addressing Limitations in On-Chain Payment Methods
Allaire emphasized that the lack of reversibility in transactions has limited the adoption of stablecoins for commerce. Reversibility is a crucial feature in modern payment systems, especially in a world plagued by online fraud or customers receiving incorrect or deficient products or services.
Response to Allegations and Future Plans
Circle recently faced allegations from Senators Elizabeth Warren and Sherrod Brown regarding improper banking relationships and financing illicit activities. The company denied these claims. Additionally, Circle is reportedly collaborating with traditional banks in Japan for stablecoin solutions and plans an IPO in 2024.
Hot Take: Circle Takes Action Against Crypto Theft with New On-Chain Solutions
Circle, the issuer of USD Coin (USDC), has launched two new on-chain solutions to combat theft and illicit activities in the crypto industry. These solutions address the irreversibility of crypto transactions, which has led to significant losses for individuals and businesses. By introducing the Recoverable Token Standard and R-Pools, Circle aims to enhance transaction reversibility and provide insurance and liquidity options for token holders. This move comes in response to reports of billions of dollars in crypto losses due to attacks on decentralized protocols. Circle’s efforts demonstrate a commitment to improving security and fostering wider adoption of stablecoins for commerce.
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