Digital dollars are stablecoins, a type of cryptocurrency that can be exchanged 1:1 for US dollars. In order to maintain it's peg, stablecoins like USDC and USDT are backed 1:1 with USD assets held in treasury—this means that every digital dollar of USDC can always be exchanged 1:1 for cash.

What are stablecoins?

Stablecoins bridge the worlds of cryptocurrency and everyday fiat currency because their prices are pegged to a reserve asset like the U.S. dollar or gold. This dramatically reduces volatility compared to something like Bitcoin and results in a form of digital money that is better suited to everything from day-to-day commerce to making transfers between exchanges.

The combination of traditional-asset stability with digital-asset flexibility has proven to be a wildly popular idea. Trillions of dollars in value have flowed into stablecoins like USD Coin (USDC) or USDT as they’ve become some of the most popular ways to store and trade value in the crypto ecosystem.

How they work

Stablecoins are free from the volatility of non-pegged cryptocurrencies like Bitcoin, while inheriting some of their most best properties:

• Stablecoins are open, global, and accessible to anyone on the internet, 24/7
• They’re fast, cheap and secure to transmit
• They’re digitally native to the Internet and programmable

Why choose USDC

At Sinbad, fostering the highest level of financial security and safety is core to our mission. USDC is Sinbad’s US dollar representative token for several compelling reasons:

• Regulatory Compliance: USDC operates within the regulated framework of US money transmission laws, ensuring adherence to stringent legal standards.
• Transparency: USDC’s issuer, Circle, is regulated by US financial authorities and publishes regular audit reports from reputable accounting firms, confirming that each USDC token is backed by one US dollar held in reserve.
• Security: USDC is reinforced by established banking partners and subject to regular audits, providing a high level of trust and security for users.
• Stability: With a strong and transparent backing, USDC has consistently maintained its peg to the US dollar, offering a reliable option for users seeking stability in their digital transactions.

Why choose USDT

USDT (Tether) is one of the earliest and most widely used stablecoins in the cryptocurrency market. Here are a few reasons why users might choose USDT:

• Liquidity: USDT has a high trading volume and is supported by most major exchanges, providing ample liquidity for trading and transfers.
• Wide Acceptance: It is widely accepted across various platforms, services, and merchants in the crypto ecosystem, making it versatile for different use cases.