Company Circle Quits Ethereum and Moves to This Altcoin
Cooperation between Coinbase and Circle, which manages the USDC stablecoin, announced multi-chain support to the USDC on Wednesday.
Company Circle Quits Ethereum and Moves to This Altcoin.
Cooperation between Coinbase and Circle, which manages the USDC stablecoin, announced multi-chain support to the USDC on Wednesday. Algorand will be the first non- Ethereum blockchain to support the USDC , which is interested in integrating the world’s second most popular stablecoin.
Exciting milestone for Circle and USDC announced today! https://t.co/CEHpxQdTSv
— Circle (@circlepay) June 24, 2020
In the announcement, Center stated that Algorand was chosen as the first blockchain to integrate USDC since the project was optimized for high volume financial applications. Circle will build a token bridge that allows the exchange of USDC in Algorand with ERC-20 USDC tokens in the Ethereum blockchain. As with every USDC, stablecoins in the Algorand protocol will be supported by fiat reserves.
USDC has become an important stablecoin
USDC has become a popular and important stablecoin in the Ethereum ecosystem. It was used to help balance the Maker protocol after the crypto collapse in March 2020; It helped facilitate margin trading on Binance and other exchanges.
In a press release, Fangfang Chen, COO of the Algorand Foundation, said, “While trying to develop more financial institutions and decentralized financial applications; they need a suitable infrastructure and a stable, regulated and widely accepted stablecoin. ”
“WE ARE VERY EXCITED ABOUT OUR CIRCLE PARTNERSHIP TO TAKE ADVANTAGE OF THE UNIQUE ADVANTAGES OF USDC AND PROVIDE FINANCIAL INSTITUTIONS WITH THE TOOLS THEY NEED TO CREATE REAL-WORLD USE CASES AND PROVIDE CORPORATE-LEVEL SOLUTIONS.”
The story of the USDC has become a stimulating story for the state of anxiety surrounding central assets, even if they are fixed in the reserve currency.In October 2019, Coinbase started offering rewards to those who stored the USDC in their Coinbase accounts. Eight months later, the reward rates were cut by about 90% just a day in advance and many USDC advocates were confused.Despite a challenging start, Algorand has established partnerships in various sectors such as real estate, gaming and social media.
In the announcement, Center called for other interesting blockchain projects to discuss the implementation of the new multi-chain framework, but partnerships were not disclosed. Earlier this year, Tether was also added to the Algorand blockchain.