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  .  Published  · By tradingfanbois

Circle acquired Poloniex Exchange and issues USDC (USD Coin based on CENTRE)

 

Image: The rumors of Polo's death have been greatly exaggerated.

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Goldman backed cryptospace veteran Circle announced on February 26, 2018 on their blog they are acquiring another veteran - the Poloniex Exchange.

Circle is going forward with this acquisition to complement the services the startup already provides:

  • Circle Pay is a blockchain-based payment service that enables users to send money globally.
  • Circle Trade is a liquidity provider for institutions
  • Circle Invest is their new upcoming smartphone app that will focus on serving the retail

Poloniex is still one of the biggest token marketplaces, although its popularity started to vanish in 2017 due to bugs in margin market engine and unresponsive customer support. Circle promises to address the support, compliance and engine problems first.

Firstly and immediately, you can expect Circle to address customer support and scale risk, compliance, and technical operations to bolster the existing product and platform. [..] As a consumer product company, we recognize that customer experience is a core element of product experience. [..] In conjunction with the passionate, dedicated Poloniex team that is joining Circle, we look forward to giving dedicated focus to scalability, reliability, and robustness.

Circle is also planning to investigate some new token additions to Poloniex as well as fiat-denominated markets. That would be a big change as for now Poloniex has been a Tether exchange only which in the light of all the recent Tether FUD has been off-putting for some traders.

[..] we also look forward to scaling Poloniex up and out through market expansion and localization, increasing token listings where possible and appropriate, and exploring the fiat USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products.

If Poloniex can get their web interface working, hopefully with less bugs and perhaps better charts, and if some customer support could resurface, the exchange would become a serious competitor again.

The rumors of Polo's death have been greatly exaggerated?


Update - On May 22nd 2018 Poloniex announced via Twitter first implications of their work with Circle: The exchange is leaving USDT as their stablecoin solution and will implement a Circle-backed stablecoin called USDC instead.

USDC (USD Coin) is the same type of stablecoin as Tether - a fiat-backed one, run by a company taking care of a banking solution, with the same functionality to block suspicious addresses. The difference is that USDC is backed by Circle, based and regulated in the US and available for purchase via Circle. The USD Coin is based on CENTRE (centre.io) and is an ERC20.

Circle stated on their blog:

Existing fiat-backed approaches have lacked financial and operational transparency, have operated in unregulated jurisdictions with unknown banking and audit partners, and have been built as closed-loop ecosystems and closed proprietary technologies.






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About the author

Written by tradingfanbois

JMT under the Twitter handle @tradingfanbois has been deep in bitcoin markets since late 2014. It is the person who takes care of our office. Also answering your Quora questions regarding Bitcoin, cryptocurrencies and technical analysis.

Opinions are author's own.