Circle and OKX Partner for Seamless USDC-to-USD Conversions
Joint announcement highlights zero-fee conversions aimed at reducing friction in stablecoin usage.
Key Announcement
Cryptocurrency exchange OKX announced on Wednesday the integration of zero-fee USDC-to-USD conversions, following its partnership with stablecoin issuer Circle.
Circle’s Chief Business Officer Kash Razzaghi confirmed the feature enhances the seamless on and off-ramping experience for users.
“The most significant update is that users can now directly convert USD to USDC and back within the OKX platform, offering a seamless and transparent on and off-ramping experience,” Circle’s chief business officer Kash Razzaghi told Cointelegraph.
“The upgraded USDC liquidity builds on OKX’s deep bank partnerships and compliance approach, which allow users to swap USD and stablecoins “without any friction or fees, for the first time,” according to OKX’s Chief Innovation Officer Jason Lau.
Removing Existing Frictions
Despite growing stablecoin adoption, significant friction persists in USD-stablecoin swaps, primarily due to network fees and intermediation by third parties between banks and exchanges, noted former IMF digital finance analyst Ashley Lannquist.
OKX CEO Jason Lau stated this partnership directly addresses these issues, enabling “users to swap between USD and stablecoins much like any other asset swap”, promising a 1:1 conversion rate directly linked with banking infrastructure.
Availability and Scale
The zero-fee conversion service is now available to any OKX user with access to USD and USDC across trading, sending, and holding features.
OKX supports USDC across 12 blockchain networks, including Ethereum and various layer-one and layer-two solutions like Solana, Polygon, and OKT Chain.
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Infrastructure Enabling the Feature
OKX provides this enhanced liquidity through strategic partnerships with numerous banks and payment networks, fundamental to streamlining fiat on- and off-ramps.
OKX Chief Innovation Officer Jason Lau highlighted key banking partners like Standard Chartered Bank, DBS, and Bank Frick, along with payment solutions like Apple Pay and PayPal.
Rival Stablecoins Not Forgotten
Per an OKX spokesperson, while expanding USDC liquidity, the exchange continues supporting deep liquidity for its competitor, Tether’s USDT, which boasts significant trading volume on the platform.
OKX spokesperson stated: “OKX has long supported deep liquidity and access for stablecoins, especially USDT, which remains the most actively used and traded stablecoin on the platform…” Emphasis continues to be placed on integration and improved user experience for all stablecoins.
