On Wednesday, Circle, the firm behind the second biggest stablecoin in the world, said that it will be expanding USDC‘s availability to five more blockchains.
The company behind USD Coin (USDC) and Euro Coin (EUROC), Circle Internet Financial, has shared plans to expand into five other major blockchains. In early 2023, Circle intends to introduce its stablecoin on the following blockchains: Arbitrum, Cosmos, NEAR, Optimism, and Polkadot. As a result, developers working on these blockchains may begin testing Circle’s API integrations immediately.
Competition among stablecoins, or cryptocurrencies linked to a government-issued currency like the U.S. dollar, is rising, and Circle’s growth comes at a time when the market is particularly volatile. There is a $150 billion stablecoin market inside cryptocurrencies, and these coins operate as a vital link between the existing financial system and the cryptocurrency market. In the realm of stablecoins, USDC ranks second in terms of market cap and sees heavy usage on DeFi networks.
Despite this, USDC’s market dominance is under attack. Its circulating supply has decreased to $49 billion, down from $55 billion in August, since it has lost major market share lately. Decentralized finance (DeFi) platforms are developing and releasing their own stablecoins, while Tether and crypto exchange Binance have moved up to grow their own stablecoins, USDT and BUSD, respectively.
Circle’s vp of product, Joao Reginatto, made the following remark in a blog post: “Extending multi-chain support for USDC opens the way for institutions, exchanges, developers, and more to innovate and have simpler access to a reliable and stable digital dollar.“
To improve USDC transfers across blockchains, Circle has introduced a technology called Cross-Chain Transfer Protocol.
There is a shift underway in the cryptocurrency market, from the speculative to the practical use of digital currency.
At today’s Converge22 conference in San Francisco, Circle CEO and Co-Founder Jeremy Allaire said that the company’s aim is to assist enhance this new blockchain ecosystem as the narrative surrounding cryptocurrencies shifts from a primarily speculative period to the utilitarian phase.
Furthermore, he said that improving the ecosystem necessitates developing user-friendly apps for everyone, regardless of their familiarity with cryptocurrency, since all they need to know is that using a certain token would result in a smooth exchange of data and funds. They may use any stablecoin without worrying about which chain they’re on, he added.
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