Max E.Tue, Dec 14, 2021 5:26 PM
Circle Launches USDC Stablecoin on Avalanche Blockchain
Circle has announced plans to launch its stablecoin on the Avalanche blockchain, which will add its own version of the USDC stablecoin.
Circle vice president of product João Reginatto expressed his satisfaction with the integration as he said networks adding USDC are facing increased sales. However, the vice president emphasized, there is no need to wait for a miracle: for a new asset in the ecosystem to work at full capacity and begin to bring returns, it takes time – usually several months.
Describing the partnership prospects, Reginatto noted that the integration will make it easier for users to deal with digital assets and reduce their costs.
Until recently, users were forced to transfer USDC tokens from Ethereum to Avalanche. According to John Wu, president of Ava Labs, such a scheme caused inconvenience to users. However, the new partnership will allow USDC tokens to be issued directly on the Avalanche blockchain, which will greatly ease the plight of users.
Avalanche hopes that the integration will contribute to the development of not only their own project but the entire sector of decentralized finance. The network's interest in its progress is evidenced by the fact that Avalanche recently announced plans to launch a $200 million incubation fund for DeFi projects.
According to the president of the company, the partnership is driving growth in the number of DeFi applications already in operation.Wu praised Circle's stablecoin, with about $ 1.3 billion in funds flowing across the USDC bridge to Avalanche, which is larger than the funds transferred through Tether (USDT), the largest stablecoin by market capitalization. Wu believes this fact indicates that users trust USDC more than Tether.
Another plus of the new partnership is the fact that developers will receive a development kit from Circle. Its instruments support USDC on Avalanche.
Commenting on the prospects for the partnership, Wu noted that fiat currencies are gradually becoming a thing of the past, and the current global pandemic is serving as a catalyst for this process. Accordingly, the world of global finance today is faced with the overriding challenge of restructuring the existing infrastructure of finance and payment solutions. Wu expressed confidence that, together, Avalanche and Circle will make an important contribution to achieving this goal.
Apart from Avalanche, a number of other blockchains including Solana, Stellar, Algorand, TRON, Hedera Hashgraph and Ethereum have integrated USDC. Earlier, Circle announced that it intends to expand the stablelock to 10 more chains.