Circle, a leading digital currency company, is preparing to launch its USDC stablecoin on the Cosmos blockchain. USDC is currently the second-largest stablecoin on the market, with a market cap of over $33 billion, according to Coinmarketcap data.
Circle had previously announced its intention to make USDC available on five other blockchains, including Polkadot, Optimism, NEAR, Arbitrum, and Cosmos. The move is part of Circle’s broader strategy to expand the use cases of USDC and make it more accessible to users across various blockchain networks.
Cosmos Network To Launch Circle’s UUDC Stablecoin Via Noble Issuance Chain
As Circle’s issuance partner for the USDC stablecoin, Noble, a Cosmos-based issuance chain, will be extremely important. By this agreement, Noble can add USDC to the network’s more than 50 blockchains on its Inter-Blockchain Communication (IBC) Protocol, giving users and developers an easy and quick way to conduct transactions in USDC.
The launch of Circle’s USDC stablecoin on Cosmos will mark the first instance of a highly liquid stablecoin being issued on the blockchain since the Terra UST failed. The collapse of the Terra UST, considered one of the most successful stablecoins in the crypto market, left a void that has yet to be filled.
This has created over a hundred different bridged USDC assets on the network, each with its risks and complications. Therefore, the need for a native stablecoin on the Cosmos blockchain has been felt by the crypto community, and the upcoming launch of Circle’s USDC on Cosmos is expected to fulfil this need.
Meanwhile, analysts suggest that the announcement of dYdX, a well-known decentralized exchange’s launch on Cosmos, must have propelled the launch of Circle’s USDC on the blockchain. dYdX plans to build an exclusive IBC-enabled app chain, making its service available to many Cosmos users.
Solving Existing And Potential Challenges
Nevertheless, Noble stated that the integration of Circle’s USDC stablecoin into the network would significantly boost liquidity, amounting to hundreds of millions of dollars in the upcoming months. The announcement also highlighted the primary purpose of this integration.
The issuance chain stated the integration aims to solve the existing challenges faced by users and app chains when dealing with bridged assets sourced from different ecosystems. The availability of a native stablecoin on Cosmos will facilitate seamless transactions within the Cosmos ecosystem, resulting in increased liquidity and a better user experience.
Noble predicts that numerous Cosmos blockchains will be widely adopted and highly liquid in the coming years. Thus, every blockchain needs a reliable and fungible version of USDC.
That’s where Noble’s expertise becomes relevant. The protocol believes its role is crucial in fulfilling this need by providing access to native USDC on over fifty IBC-enabled blockchains on the network.
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