Circle is extending USDC Stablecoin support to five new blockchains including Polkadot, Cosmos, NEAR, Arbitrum, and Optimism.
USDC is the 2nd largest stablecoin in the world created by Circle and Coinbase to dethrone USDT. It aims to integrate into the payment system of both companies and offer a much more transparent operating structure than Tether. Since USDC is a 1:1 indexed asset to the dollar and the fiat currency has no issuance limit (and never will), the smart contract that manages the indexing is very unique, allowing for infinite issuance of USDC.
Launched in 2018, USDC is backed by cryptocurrency companies such as Coinbase and Bitmain, but also by Circle, which deals with fiduciary peer-to-peer payments. USDC is now worth $48 billion in a stablecoin market of about $150 billion. The crypto aims to create a decentralized financial ecosystem where it can become the most trusted stablecoin. To do so, stablecoin is constantly partnering with other crypto companies.
USDC opens the door for institutions, exchanges, developers?
In fact, on Wednesday at the Converge22 conference in New York, Circle made it known that USDC would be available on Cosmos, Arbitrum, NEAR, Optimism and Polkadot networks soon. Joao Reginatto, vice president of products at Circle said:
“The extension of multi-channel support for USDC opens the door for institutions, exchanges, developers and more to innovate and have easier access to a reliable and stable digital dollar.”
This new expansion will soon bring the total number of USDC-enabled blockchains to 14. It is already “live” on the Algorand, Avalanche, Ethereum, Flow, Hedera, Solana, Stellar and TRON networks.
During Converge22, Circle also unveiled an inter-chain transfer protocol aimed at improving the liquidity and efficiency of USDC. Currently, USDC’s transaction mechanisms “create fragmented liquidity and [offer] a complicated user experience,” the U.S. firm admits.
The cross-chain transfer protocol ultimately allows USDC to function as a universal dollar liquidity layer across ecosystems, providing the most capital-efficient way to transport value across the ecosystem,” Reginatto explained
The protocol will be available on Ethereum and Avalanche by the end of the year and then rolled out to other blockchains in 2023.