USDC, the second largest stablecoin by market capitalization, was introduced as a native token on the Avalanche blockchain. Previously, users who wanted to get USDC in Avalanche had to bridge it through Ethereum. Well, Circle, the issuer of usd coin (USDC), allows users to mint the tokens directly on Avalanches C- chain, saving fees and eliminating the need for bridges to encase this token.
Native USDC support for avalanches
Circle, the issuer of USDC, has announced the introduction of his stablecoin in the Avalanche network. Circle expects from this development new possibilities and payment options for projects that are specially developed in the Avalanche ecosystem. While Avalanche users already had the stablecoin available in the chain, it was in a packaged condition and users had to bypass it from their Ethereum version.
This has been viewed by some as a loss of friction due to the fees involved. Now, Circle platform users can mint and redeem USDC directly on Avalanche’s C-chain. Jeremy Allaire, CEO of Circle, specified:
With USDC as the leading digital dollar currency for the decentralized economy, this integration will be vital for developers and communities looking to participate in one of the fastest organically growing ecosystems in the crypto space.
Also on the introduction, John Wu, President of Ava Labs said that this partnership could help users solve problems related to using Fiat for various purposes. He emphasized:
A fundamental restructuring of the old payments and the financial infrastructure is not only justified, it is overdue. Together, Avalanche and Circle will pioneer solutions to these systemic challenges.
Circle’s multi-chain strategy
This latest step is part of an expansion policy circle announced in June, with the aim of launching on ten more blockchains, with the aim of expanding its presence in defi environments. Implementation of this strategy has been moving forward since then, with USDC launching on Tron and now Avalanche.
This expansion policy has been cited as one of the reasons for the growth of the USDC this year, which saw its market cap increase 10-fold. As of January 1, there were just over 4 billion USDC in circulation, and now there are 40 billion coins, and the trend is rising. However, despite all that growth, it still ranks second USDT, which has a market capitalization of more than $ 77 billion.
What do you think of the introduction of USDC on Avalanche? Let us know in the comments section below.
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Source: Crypto News Austria