Kinesis Set to Adopt C1USD

Kinesis is set to adopt a new base stablecoin – Currency One USD (C1USD) the world’s first fully insured 1:1 USD over-collateralised backed stablecoin to offer a yield – with no lock-up required.

Upon launch, the Kinesis platform will seamlessly transition USD1 to C1USD, with conversion facilities remaining open for private wallet holders. The scheduled date for the launch is week 3, September, 2025.

Built in full compliance with all requisite stablecoin and AML/CTF regulations, holders can earn yields on a USD stablecoin.

C1USD will become a fully insured USD-backed stablecoin available on the market, Kinesis brings users a level of protection and security seen nowhere else in the industry.

Insurance

The Issuer and the stablecoin project group partners are primed, for early post-launch, to integrate and directly tie C1USD with insurance wrapping, being underwritten by a consortium of top global insurance and re-insurance groups. The C1USD Insurance Policy is designed to ensure the 1:1 peg between the backing asset Reserve and the C1USD tokens in circulation.

The C1USD Yield

Unique to the stablecoin space and in an industry first, Kinesis is set to offer users a variable yield on a fully insured USD-backed stablecoin. Kinesis users holding C1USD in a verified KMS account or an external wallet linked to the KMS account, will automatically receive a yield, paid in C1USD at the end of each month.

At launch, the variable yield is set at 7.5% APY, with a quarterly rate review of the rate conducted each quarter.

Where does the C1USD Yield come from?

The variable C1USD yield is funded by the Issuer, which derives ROI on capital through portfolio strategies that combine traditional finance (TradFi) and Decentralised Finance (DeFi). The Issuer – Kinesis Money Panama SA (“KMP”), with registered Company No. 155727241.

Transitioning from USD1 to C1USD

C1USD will replace USD1, advancing Kinesis’ original USD stablecoin into a fully insured digital dollar. All existing USD1 balances will be converted 1:1 into C1USD with no fees or disruption, ensuring complete continuity for every Kinesis user. 

C1USD has been designed and built in consultation with specialist industry participants to tap into both traditional capital markets across the globe, along with the multi-trillion dollar decentralised economy. This makes the product a quantum leap forward for the Kinesis ecosystem and we have a commensurate commercialisation strategy to follow through with this unique product. The commercialisation strategy incorporates a packaging of all Kinesis native tokens, along with all new tokens coming through the pipeline in short but orderly succession.

C1USD Project is being underwritten to be supported by a consortium of leading global insurance and reinsurance providers. This insurance backing will strengthen confidence in the stability of C1USD by adding a robust layer of risk mitigation and protection. When this coverage is entirely in place, holders gain more than the assurance of asset security, they also unlock greater flexibility to deploy C1USD across both TradFi and DeFi markets. This enhanced trust and liquidity make C1USD appealing to a wide range of institutions.

Designed for both institutions and retail participants in both TradFi and DeFi economies, C1USD bridges markets within a single framework, delivering the ability to send, receive, and trade value instantly with minimal fees on widely used public blockchain networks, initially Stellar and ERC-20. The ERC-20 token has EVM compatibility and will be used to bridge into all major EVM-compatible networks, incorporating all their available tools and facilities in this decentralised economy. The Solana network and other leading blockchain protocols will also be offered post-launch.

Why We’re Changing from USD1

The transition from USD1 to C1USD was driven by one key factor, the emergence of the naming conflict with World Liberty Financial’s USD stablecoin. Whilst it is possible for two tokens to exist with the same ticker code, it introduces confusion in the market and centralised exchanges do not permit listing of two tokens with the same ticker. 

This transition ensures that C1USD meets the highest regulatory standards, removes market confusion, and provides a solid foundation for broader institutional adoption. By completing this shift, Kinesis has positioned C1USD to play a defining role in the next phase of the stablecoin industry, with our users standing to benefit.

Transition to C1USD

The Kinesis platform and Kinesis Mint will be transitioning from USD One (USD1) to Currency One USD (C1USD) on week 3, September, 2025.  

Following the transition to C1USD on the Kinesis platform and App, Kinesis users’ everyday interactions with the Kinesis Monetary System remain unchanged.

If you are holding USD1 before the transition:

• Your balance remains fully backed and unaffected in value.
• Your USD1 balance will automatically be converted 1:1 into C1USD without charge.
• Exchangeability between USD1 and C1USD will remain open until the transition is completed.

Please close any trades featuring USD1 pairs ahead of the transition. Any pairs that are not closed will be closed automatically. Following the transition, Kinesis users will be able to set up any previous open orders against USD1, with C1USD. All the 39 pairs that were operational with USD1 will be replaced with C1USD. 

This ensures continuity for every Kinesis user, with no disruption to holdings, payments, or system functionality.

C1USD Features

C1USD is built for secure, transparent trading and payments, with the added benefit of the yield mechanism built into its structure.

Core Functionality:

• Global Utility: Designed for everyday transactions, institutional trading, and peer-to-peer payments, with full integration across the Kinesis platform.
• Speed: Transactions confirmed in seconds, leveraging the Stellar blockchain for near-instant settlement.
• Low Costs: Flat transaction fees of $0.01 via Stellar and variable fee on ERC-20 per transfer, regardless of amount, making international payments cheaper than traditional banking channels. 
• Interoperability: Initially issued on both Stellar and EVM compatible Ethereum (ERC-20), enabling cross-chain use and deep integration into the digital economy.
• Interfaced Yield:  Yield accrued daily and paid monthly via C1USD tokens in Kinesis Platform accounts.

The Currency One Suite (Hybrid Accounts)

The upcoming launch of the Currency One suite gives Kinesis users access to a broadened range of fully backed stablecoins in major local currencies. This unlocks instant, low-cost international payments; forex currency conversions and a simple way to move fiat currency on-chain.

C1USD is the first release of its new Currency One suite of 7 native Kinesis stablecoins backed 1:1 by major global currencies:

• Currency One GBP (C1GBP) – British Pound Sterling
• Currency One EUR (C1EUR) – Euro
• Currency One AUD (C1AUD) – Australian Dollar
• Currency One CAD (C1CAD) – Canadian Dollar
• Currency One CHF (C1CHF) – Swiss Franc
• Currency One AED (C1AED) – United Arab Emirates Dirham
• Currency One SGD (C1SGD) – Singapore Dollar

Key features:

• Fast, low-cost global transfers: Seamless payments across borders, enabled by the Stellar network.
• Low-cost currency exchange: Efficient FX conversions between major stablecoins within the Kinesis system, cutting out traditional banking fees and delays.
• Deep liquidity pools: Instantly accessible liquidity across multiple currencies, enabling real-time settlement, tight spreads, and competitive exchange rates.
• Multi-blockchain support: Accessibility on Stellar and Ethereum (ERC-20) for broad use cases and deep integrations into the DeFi economy.
• Onramps: Direct conversion of local fiat currency into its corresponding stablecoin, without FX fees.
• Payment solutions: Support for merchant and retail payments, fully integrated with Kinesis’ existing features.
• Remittance services: A competitive offering in the global money transfer market, built on regulated stablecoins.

The stablecoin market is projected to expand into the trillions, and with regulatory reform underway across the globe, adoption is set to accelerate at an unprecedented pace.

For Kinesis users, the launch means added protection, confidence from independent attestations, and lower-cost, faster international transfers. Most importantly, every C1USD transaction on the platform adds to the overall volume within the Kinesis Monetary System, which in turn increases the yields distributed back to users across the platform.

With the groundwork laid for the initial iteration of the stablecoin, Kinesis is already in advanced stages with exchanges to list C1USD. As users will need to send C1USD back onto the platform to access a yield, the stablecoin can serve as a powerful marketing tool and onboarding mechanism for the Kinesis platform. 

By launching C1USD, Kinesis is ahead of the curve, delivering unique features, yield, insurance, compliance, and full USD-backing that no other stablecoin combines and a first-mover advantage. This is where compliance, assurance, and yield converge to position Kinesis at the forefront of the stablecoin market.

For further information, please contact your account executive.