Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar, today found a new home on the open source decentralized protocol Stellar, which becomes its third major blockchain.
The move comes a few months after the stablecoin was launched on the Algorand (ALGO) blockchain, which reduced its reliance on the Ethereum network which has offered support for the ERC-20 native coin from the start.
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Stellar is an open source payment technology that shares several similarities with Ripple. Both coins initially shared the same protocol and were also co-founded by the same person, Jed McCaleb. Just like Ripple, Stellar aims to connect financial institutions and reduce the costs and time required for cross-border transfers.
“By combining our strengths – USDC as one of the world’s leading compliant and regulated digital dollar stablecoins and Stellar as a mature network with an unprecedented ability to connect global financial infrastructure – we are positioned to offer users USDC and Stellar a new level of opportunity, ”said Denelle Dixon, CEO of the Stellar Development Foundation.
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Acting as a kind of safe haven where cryptocurrency traders can park their assets in volatile markets, USDC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges, and other smart contracts to interact with the token.
USDC currently ranks as the second largest stablecoin by market cap and the 13th largest crypto asset with a capitalization of nearly $ 2.7 billion. The coin was developed as a joint venture that includes the US cryptocurrency exchange Coinbase and the payment company Circle.
However, according to CoinMarketCap, USDC showed a muted reaction to the news, having dropped 0.01% on the day.
This expanding support for USDC on new blockchains comes as confidence in the coin grew rapidly after it hired a major accounting firm to verify its reserves. The move was important due to annoying questions about Tether’s main stablecoin, which has granted its dominance to other alternatives, including Circle’s coin, Paxos Standard, and the Gemini dollar.
Circle recently opened the doors of its stablecoin to businesses with the launch of a dedicated account that provides an API toolbox for developers to build on USDC. The move expands the scope of the offering which focuses primarily on retail and investment to appeal to B2B partnerships.
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