Table Of Contents

C1USD – Currency One USD

Overview

Kinesis plans to issue Currency One USD, or C1USD, as a stablecoin backed by US-dollar reserves. The token is meant to stay at a one-to-one link with those reserves. It will operate under the usual stablecoin rules and anti-money-laundering requirements. People with verified Kinesis accounts, or with wallets linked to those accounts, will be able to receive a variable yield paid each month in C1USD. The starting rate is set at 7.5 percent APY and will be looked at again every quarter. Yield builds up day by day.

Insurance and Reserves

External insurance is being arranged for C1USD. The cover is there to help keep the one-to-one peg if the reserves ever drop below the needed level. It sits on top of the actual reserves rather than taking their place.

Yield

Kinesis Money Panama SA pays the yield from a combination of ordinary fixed-income investments and positions in decentralised finance. Token holders do not have to lock their coins or stake them. Eligible balances simply receive the credit automatically at the end of each month.

Technical Details

C1USD will go live on the Stellar network and also as an ERC-20 token on Ethereum. Transfers on Stellar are expected to finish in a few seconds and cost very little. Fees on Ethereum will vary with how busy the network is at the time. Plans exist to add other blockchains later.

Future Expansion

C1USD is the first of a set of stablecoins that will each be backed one-to-one by a major fiat currency. Later tokens are expected to cover the British pound, the euro, the Australian dollar, the Canadian dollar, the Swiss franc, the UAE dirham and the Singapore dollar. The full Currency One group is meant to handle low-cost transfers, foreign-exchange moves and remittances.

Eligibility

Monthly yield only goes to balances held inside a verified Kinesis account or a wallet that is linked to one. Coins that stay solely on outside exchanges do not qualify for the payment.