Currency One USD (C1USD) is a fiat-collateralized stablecoin designed to maintain a 1:1 peg with the U.S. dollar. Issued by Kinesis Money Panama S.A., the asset operates on the Ethereum and Stellar blockchains and is integrated into the Kinesis Money financial ecosystem. ^{[1] [2]}

Overview

Currency One USD is positioned as a stable digital asset that serves as a bridge between traditional finance and the digital currency economy. It is the inaugural asset in the planned "Currency One Suite," a series of single-currency stablecoins. The project's stated mission is to provide users with a stablecoin that combines the security of cash reserves with the efficiency of blockchain technology. ^[2]

The token is designed as a utility for secure, non-volatile digital transactions rather than as a speculative instrument. It is fully backed by reserves of cash and cash equivalents, which are held in segregated accounts separate from the issuer's corporate funds. The issuer, Kinesis Money Panama S.A., plans to provide monthly attestations from independent auditors to verify that the circulating supply of C1USD is fully supported by the value of assets held in reserve. C1USD is primarily utilized within the Kinesis Money platform, where it serves as a trading pair and a yield-bearing asset for verified users. ^{[1] [3]}

History

The token was previously known as USD1 before being rebranded to Currency One USD (C1USD) and migrated to a new smart contract. On September 5, 2025, Kinesis announced its plan to adopt the stablecoin into its monetary system. The official adoption and publication of the C1USD whitepaper occurred on September 19, 2025. ^{[4] [3]}

Following its launch, C1USD introduced a yield-bearing feature for its holders on the Kinesis platform. The first monthly yield distribution was scheduled for the beginning of November 2025, covering the earning periods of both September and October 2025, indicating the program's activation in September. The project also announced that an insurance wrapper designed to secure the token's peg was in the process of being underwritten and was expected to be activated in the weeks following the launch. ^[1]

Technology

C1USD is a multi-chain asset built on public, decentralized blockchains to ensure transparency and broad compatibility within the digital asset ecosystem. ^[2]

Blockchain Networks

C1USD was launched on two primary blockchain networks to serve distinct purposes:

• Ethereum: As an ERC-20 token, C1USD is compatible with the Ethereum Virtual Machine (EVM), allowing for integration with a wide range of decentralized applications (dApps), smart contracts, and DeFi protocols. The Ethereum contract is upgradeable, utilizing the EIP-1967 proxy pattern. ^[1]
• Stellar: The asset is also available on the Stellar network, which is utilized for its high-speed and low-cost transaction capabilities, making it suitable for payments and settlements. Transactions on Stellar typically cost around $0.01. ^[1]

Asset Backing and Reserves

Each C1USD token is designed to be fully backed on a 1:1 basis by reserves consisting of cash and cash equivalents. The reserve portfolio is managed by regulated investment managers and may include:

• Cash held at regulated financial institutions.
• Money Market Funds (MMFs).
• Highly liquid U.S. sovereign financial instruments, such as U.S. Treasury Bills.

The fiat reserves are held in accounts that are segregated from the corporate funds of the issuer, Kinesis Money Panama S.A. This segregation is intended to protect the assets backing the stablecoin. ^[2]

Peg Stability and Security

To further secure its 1:1 peg to the U.S. dollar, C1USD plans to incorporate an "All-Risk Insurance Policy." This insurance wrapper, underwritten by a consortium of global insurers, is structured to protect the peg and cover risks associated with cyber fraud and theft. The underwriting process for this policy was reported to be underway shortly after the token's launch. The project also intends to publish monthly attestations from independent auditors to provide public verification of its asset reserves. ^{[1] [2]}

Features

C1USD incorporates several features aimed at enhancing its utility for users within the Kinesis ecosystem and the broader crypto market.

Yield Mechanism

C1USD offers a yield to holders who store the asset within a verified Kinesis account. The introductory variable rate was set at 7.5% Annual Percentage Yield (APY). This yield is subject to several conditions:

• It is available exclusively to Kinesis users who have completed Know Your Customer (KYC) verification.
• The APY is a variable rate and is subject to a quarterly review by the issuer.
• Yield accrues daily and is paid out monthly in C1USD directly to the user's account.
• There are no lock-up periods, meaning the C1USD balance remains fully liquid and accessible for spending, sending, or trading at any time.

The yield is not generated by the token's smart contract but is funded by the issuer, Kinesis Money Panama S.A. The issuer generates returns on its capital through a portfolio of investments in both traditional finance (TradFi) and decentralized finance (DeFi). ^[1]

Redeemability and Transferability

As a fiat-collateralized stablecoin, C1USD is designed to be redeemable. Holders can submit redemption requests to the issuer for U.S. dollars, subject to the project's terms and conditions and applicable legal requirements. The token is also fungible and transferable, enabling peer-to-peer transactions on its supported blockchains with lower fees compared to traditional banking systems. ^[2]

Tokenomics

Upon launch, C1USD had an initial total market capitalization of $2.55 billion, distributed across its supported blockchains. ^[1]

Supply and Distribution

The initial supply was allocated as follows:

• Ethereum: 2,500,000,000 C1USD
• Stellar: 50,000,000 C1USD

As of October 2025, the total circulating supply was approximately 2.55 billion C1USD. The token's market performance saw an all-time high of $1.03 on October 12, 2025, and an all-time low of $0.9652 on October 9, 2025. ^{[3] [5]}

Contract Addresses

• Ethereum (ERC-20): 0x40CAA7912437002ee2c8415D43E7f575c733674C
• Stellar: C1USD-GDCDFF6ZZP3HVODSVJYAN6IRNGWGPLVFKH23RY2OFHFGGVCGBXSDPKTU-2

These addresses allow users to interact with the token on its respective networks and can be used to add C1USD to compatible wallets like MetaMask. ^[1]

Use Cases and Adoption

C1USD is designed for a variety of applications within both centralized and decentralized financial systems. Its primary trading venue is the Kinesis Money exchange, where it is paired against other digital assets. The most active trading pairs include XRP/C1USD, XLM/C1USD, DASH/C1USD, C1USD/USDC, and KAU/C1USD (Kinesis Gold). ^[3]

The intended use cases for C1USD include:

• Trading: Serving as a stable base currency for trading against volatile cryptocurrencies and digital commodities like gold (KAU) and silver (KAG).
• Cross-Border Remittances: Facilitating fast, low-cost international money transfers on a peer-to-peer basis.
• DeFi Integration: Acting as collateral for borrowing, lending, and providing liquidity in decentralized finance protocols on EVM-compatible networks.
• Collateral and Escrow: Providing a stable store of value for smart contracts and escrow services.
• Hedging: Allowing traders and investors to move out of volatile assets into a stable, USD-pegged token to protect capital.
• Financial Inclusion: Offering access to a stable digital currency and financial tools for individuals in underbanked or unbanked regions.

These use cases are outlined in the project's official documentation. ^[2]

Future Developments

The C1USD whitepaper outlines several key initiatives for the project's future growth and development. A primary goal is the full activation of its All-Risk Insurance Policy to secure the peg. The project also plans a multi-chain expansion to issue C1USD on additional blockchains, enhancing its interoperability and liquidity across different DeFi ecosystems. ^[2]

Another stated objective is to structure C1USD for compliance with emerging regulations, specifically mentioning the "US GENIUS Act," to ensure its participation in the U.S. market. The roadmap also includes plans to expand the "Currency One Suite" with other single-currency stablecoins and to form strategic partnerships with payment processors, wallet providers, and DeFi projects to increase adoption. Functionality improvements are also planned, such as allowing users to link external wallets to their Kinesis accounts while still earning yield on their C1USD holdings. ^{[2] [3]}

Risk Factors

The C1USD whitepaper discloses several risk factors inherent to the stablecoin and the broader digital asset market.

• Regulatory Risk: The legal and regulatory landscape for stablecoins is continuously evolving across jurisdictions, which could impact the operation, availability, or viability of C1USD.
• Redemption Risk: The ability for holders to redeem C1USD for fiat currency is subject to the issuer's terms and conditions and depends on the liquidity and accessibility of the underlying reserve assets.
• Counterparty Risk: The project relies on third-party financial institutions, such as banks for custody and exchanges for liquidity, which introduces risks related to the performance and stability of these counterparties.
• Operational Risk: C1USD is exposed to operational threats common in the crypto industry, including fraud, cyberattacks, and technical failures.
• Stabilization Mechanism Risk: While fiat-collateralized stablecoins are generally considered more stable than algorithmic ones, they still face the risk of de-pegging from their target value, particularly during periods of high market volatility or large-scale redemption events.

The issuer also clarifies in legal disclaimers that C1USD is not intended to be a payments mechanism or a financial investment product. Any payment-like use occurs on a peer-to-peer basis, and holding the token itself does not confer a right to a financial return; the yield offered is a separate feature tied to the Kinesis platform. ^[2]