Circle’s stablecoin USD Coin (USDC) recently announced that it will be available on Stellar- its third official blockchain. The digital asset is already available on Ethereum and Algorand.
Stellar is USDC’s new home
USDC is a US dollar pegged stablecoin which will now be available on the open-source blockchain Stellar. A few months ago, the coin announced that it would be using Algorand (ALGO) blockchain as its second blockchain to reduce its dependency on the Ethereum network, it’s original home. Stellar is an open-source and decentralized payment technology that is similar in many ways to Ripple.
Both coins were co-founded by Jed McCaleb and initially shared the same protocol. Stellar also tries to reduce the costs of cross-border transactions for financial institutions.
Denelle Dixon, Stellar Development Foundation CEO commented on the shift and said, “Combining our strengths – USDC as one of the world’s leading compliant and regulated digital dollar stablecoins and Stellar as a mature network with an unparalleled ability to connect global financial infrastructure – we are positioned to offer USDC and Stellar users a new level of opportunity.”
USDC provides users a safe haven
The cryptocurrency markets are volatile but offerings like USDC help in smoothening the volatility by offering relatively stable pricing to the users. This helps traders in parking their assets safely. USDC is originally designed on the ERC-20 protocol which makes it easy to use on exchange, wallets, and other smart contracts. It was developed as a joint venture between payments firm Circle and crypto exchange Coinbase. It is the second-largest stablecoin in the world and the 13th largest cryptocurrency with a $2.7 billion market cap.
USDC did not show a big reaction to the news and dropped 0.01%. However, there is growing support for stablecoins in the market. To distinguish itself, USDC also appointed a major accounting firm to audit its USD reserves. This helped boost confidence among users especially as the world’s largest stablecoin goes through several questions about its legitimacy and transparency.