USDC Stablecoin to Launch on Algorand’s Blockchain in a Debut of the Multi-Chain Framework
The USDC stablecoin will launch on Algorand blockchain in a debut of its multi-chain framework. This dollar-backed digital asset has gained popularity in recent months to become the second-largest stablecoin as of press date. An integration with Algorand will further scale its prospects, given the underlying value in fiat conversion to stable tokens.
As the demand for stablecoin increases, USDC, which is an ERC-20 token, seems to be implementing scalable solutions for integration with various blockchain networks. The Circle and Coinbase run venture is optimistic about mainstream adoption, given its milestone with Algorand.
USDC Powered Stablecoins on Algorand
As highlighted earlier, the USDC powered framework will first launch on Algorand before scaling to other platforms. Circle noted that its goal is to add the support of USDC and other affiliated stablecoins within Algorand's blockchain ecosystem.
Basically, users with Circle API's or business accounts will be able to move funds from traditional financial institutions such as banks to Algorand's network. Circle co-founder and CEO, Jeremy Allaire, emphasized that this collaboration will create room for expansion in financial applications,
“The combination of USDC and Circle Platform Services with the Algorand blockchain will create a foundation for developing a wide range of scalable, secure, and compliant financial applications.”
Apart from moving funds, USDC stablecoin users will leverage Algorand's convenience in converting the transferred funds into stablecoins. According to the COO of Algorand, Fangfang Chen, the USDC value proposition as a stablecoin can, therefore, complement Algorand's blockchain network,
“As more financial institutions and enterprises look to build decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated, and widely accepted stablecoin.”
Looking at the USDC stablecoin, it has proven to be quite fundamental within crypto markets. Today, over 2.5 billion USDC tokens have been issued, translating to a transactional value of around $50 billion. Chen went on to note the underlying value of welcoming the partnership,
“We are excited to partner with Circle to provide financial institutions with the tools they need to leverage the unique benefits of USDC and offer enterprise-grade solutions to build real-world use cases.”