When you deposit money into Pebble, our partners convert that money into a US dollar denominated cryptocurrency called a stablecoin.
What are stablecoins?
A stablecoin is very different from Bitcoin or any other cryptocurrency that has a fluctuating price. Because stablecoins are backed by a real-world asset (the US dollar), it holds a consistent value regardless of market conditions. They were created to allow users to maintain their assets in the crypto ecosystem without having to worry about the risk of making or losing money.
Which stable coin does Pebble use?
With a total market capitalization of 180 billion dollars, there are a few different types of stable coins in circulation. When you use Pebble, your money will only be held in USDC.
Why does Pebble use USDC?
USDC is a stablecoin launched in collaboration by Coinbase and Circle — two of the largest blockchain companies in the world. It is a unique stablecoin because for every 1 USDC created, 1 US dollar is held in reserve. This means USDC isn't an abstract cryptocurrency . . . it has tangible value and is a more efficient way of interacting with US dollars due to the digitalization of it.
Grant Thornton, one of the worlds largest accounting firms, audits USDC's reserves every month to ensure that there is a 1:1 ratio between USDC and US dollars. All commercial issuers of USDC are required to hold every applicable licenses in their operating jurisdictions, and to have audited AML and compliance programs that meet FATF standards. All partners in the Pebble ecosystem that directly interacts with USDC complies by these regulations to ensure maximum security for you.
Where is the USDC held?
We deposit the USDC into your Pebble account through our custodial partners. This custodial wallet is secured against theft, and only you can access these funds. The entire process happens automatically, so you can start earning 5% on your cash without breaking a sweat.
In fact, when you're using Pebble, you only interact with the US dollars you are already familiar with. Whether you are sending, spending, moving, depositing, or withdrawing your money — let the Pebble team take care of the hard stuff!