Circle's USD Coin (USDC) to Launch on Celo Blockchain, Boosting Real-World Asset Applications
Summary:
Circle's USD Coin (USDC) is set to launch on the Celo blockchain, expanding its real-world asset applications and augmenting its convertibility. With the integration, institutional and commercial users will have access to the Circle Mint on/offramp, increasing activity on Celo. The move will also serve the growing mobile-first user base in higher blockchain adoption regions. Despite allegations of money laundering links, Circle continues to broaden its global foothold.
The USDC (USD Coin) by Circle is set to be introduced on the Celo blockchain, according to a declaration by the Celo Foundation. This action will enrich Celo's real-world asset applications and augment the convertibility of USDC into traditional money forms. Together with Celo’s native proof-of-stake governance token CELO (CELO), USDC will participate in Celo’s transformation from an EVM-compatible layer-1 chain into an Ethereum layer-2 protocol. A future proposal will allow the Celo community to vote on having USDC serve as the gas currency for the ecosystem. Stablecoins such as cUSD, cEuro, cREAL, and eXOF are already being issued on Celo by Mento Lab.
Promoting itself as a participant in the regenerative finance movement, Celo is a carbon-neutral, mobile-first blockchain. It employs mobile technology to enhance user experiences in emerging markets. In September, the Opera web platform initiated its MiniPay wallet on Celo for mobile phone users in Africa. Shamus Noonan, Senior Business Development Manager at Circle, stated that this collaboration would expand USDC access and utilize Celo’s mobile-first user base in areas of high blockchain adoption.
In addition, USDC integration will permit institutional and commercial users to access the Circle Mint on/offramp, leading to heightened activity on Celo, as stated by the Celo Foundation.
In spite of a reduction in circulation, the number of wallets with the USDC stablecoin saw a 59% growth in 2023. As the second-largest stablecoin, USDC boasts a market cap of $26.5 billion, shadowed by Tether (USDT), which has a cap of $96.1 billion. In mid-January, reports suggested that an initial public offering was filed in the United States by USDC.
Circle has been extending its global presence. In December, it received conditional registration as a provider of virtual asset services in France. Prior to this, Circle allied with SBI, a Japanese finance firm, to launch the stablecoin in Japan. Since 2020, it has been collaborating with global payment processor Visa, using USDC issued on Ethereum and Solana since September. However, Circle has been criticized for alleged links to money laundering, accusations it has denied.
Published At
1/31/2024 12:34:02 AM
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