• USD Coin (USDC) will be rolled out to six more blockchains in the next two months.
• The addition of these blockchains could be a catalyst for further stablecoin adoption.
• Coinbase and Circle have now joined forces, with Coinbase taking an undisclosed minority interest stake in the latter.
Expansion of USDC
In a significant move within the crypto realm, Circle, the company behind USD Coin (USDC), said it will extend support for its stablecoin to six more blockchains in the next two months. Based on a joint release by Coinbase and Circle, USDC has already been available on nine blockchains including Ethereum, Arbitrum, Avalanche, Stellar, Tron, Flow, Algorand, Hedera and Solana and will now be supported on at least 15 blockchains.
Pegging to USD
USDC was designed to maintain a 1-to-1 peg with the US Dollar. Though it is currently the second largest stablecoin after Tether (USDt), its market share has been decreasing due to fears associated with USD reserves on failed Silicon Valley Bank.
Partnership Between Coinbase & Circle
The new developments come from a collaboration between Coinbase and Circle in which Coinbase secured an undisclosed minority interest stake in the latter. This partnership effectively disbanded the Centre Consortium that was formed in 2018 to govern USDC’s token issuance protocol.
Aim Of The Expansion
Circle said that this plan is part of an effort to expand USDC’s global reach and utility as well as create a “more open financial system” for individuals around the world. Additionally, this could serve as an opportunity for developers building products on any of these platforms or chains since they can easily integrate with each other using USDC as a medium of exchange between them.
Impact On The Crypto Industry
This expansion could have far reaching implications for both cryptocurrency investors and developers alike since it allows them access to multiple networks through one common currency instead of having to deal with different currencies across various platforms or chains. Additionally, this could also facilitate cross-chain transactions while providing users with greater liquidity options compared to other cryptocurrencies such as Bitcoin or Etherium.