Circle Rolls Out Full Production Support for USDC on the Solana Blockchain
SOL surged on the back of the support. USDC is also coming soon on Stellar.
Circle has announced comprehensive support for Solana USDC. The partnership between Coinbase and Center consortium Circle and Solana was first announced last year. This week, Circle rolled out full production support for USDC on the Solana blockchain for all of its customers.
This, Co-founder & CEO of Circle Jeremy Allaire, says, “brings USDC to a fast-moving ecosystem attracting innovations in DeFi and consumer apps.” As a result, SOL token surged to $3.88, up 108% in 2021 so far.
Solana is a public blockchain that offers scalability, speed, and cost-efficiency, which helps Solana USDC enable transactions to settle in ~400ms with a fraction of a cent in transaction fees while handling upwards of 50,000tps.
“This is crucial right now for DeFi and consumer apps that need scale, speed, and cost-efficiency,” said Allaire.
As we have seen during highly volatile days, Ethereum and DEX Uniswap get so much usage that it becomes almost impossible to use, especially for smaller users, raising the demand for layers 2 solutions and blockchains like Solana. Allaire noted,
“We’ve long talked about needing 3rd generation chains to scale USDC into new use cases and integration into capital markets and consumer finance. This is a step in that direction, building on our existing work with Algorand and soon Stellar.”
USD pegged stablecoin USDC is gaining a lot of popularity, especially in the DeFi ecosystem.
While Tether leads with 75% dominance with a market cap of over $25 billion since March 2020, USDT has only grown 5x compared to USDC’s market cap, which has grown 11x to over $5.5 billion during the same period.
Circle’s partnership with Solana means companies can use their Circle Account to mint and redeem Solana USDC and also swap, send and receive across Ethereum and Algorand USDC, too, with more coming soon as well. It also supports building secure wallets, custody, and treasury infrastructure on top of Solana.
While there is no cost convert across blockchains and Circle uses a free “swapping mechanism” to allow customers to exchange USDC on one supported blockchain to another by sending to and from Circle addresses — “after Customer generates one deposit address for converting across blockchains, Circle will charge a fee of $100 for each additional deposit address.”
Solana USDC is supported on crypto exchange FTX, Project Serum, and projects like Bonfida built on top of the Serum CLOB, and crypto-wallets like Trust Wallet and Oxygen Wallet.