Circle Internet, (CRCL) examines ways of turning transactions involving its stableecoin, USDC, Financial Times (FT) reported Thursday.
The issuer of the second largest stableecoin is “to think through … whether there is the possibility of reversibility of transactions,” the company’s president, Heath Tarbert, said in an interview with the newspaper.
Stableecoins, tokens associated with the value of a traditional financial (tradfi) asset, such as a Fiat currency, is an important cog in the cryptocurrency machine that offers users a hedge against volatility than can hit tokens like and . They also find popularity as a method of international payments. The sector has a market capital of approx. $ 300 billion, according to data traced by CoingeCKO. USDC alone has a market capital of $ 74 billion; Market leader Tether’s USDT has $ 173 billion.
Tarbert said that allowing transactions can be repaid in the event of fraud or disputes, similar to that possible in Tradfi, would help push stableecoins into the mainstream.
Such a development can rub certain crypto-purists in the wrong way because they consider the finality of settlement as non-convenient. Introducing the possibility of turning transactions can rely on arbitration of a central authority that many believe is the antithesis of decentralization that lies in the core of cryptocurrency.
“At the same time, we want the finality of settlement,” Tarbert said. “So there is an inherent tension between being able to transfer something right away, but that it is irrevocable.”
Circle has been at the forefront of growing adoption of stableecoins in the United States this year after its successful original public offerings (IPO) in June.
The company did not immediately respond to Coindesk’s request for further comment.
