Circle Launches USD Coin (USDC) on Celo Blockchain, Boosting CELO Token Value
Circleโs USD Coin (USDC) has been integrated into the Celo blockchain, resulting in a 9% surge in the value of the CELO token. This move allows for easy access to the regulated US dollar stablecoin on Celoโs mainnet without the need for asset bridging between chains. San Francisco-based financial services company Circle made the announcement earlier this week.
Celo, known for its mobile-first approach and compatibility with the Ethereum Virtual Machine, aims to enable financial success through real-world applications and affordable global payments. The integration of USDC on Celo is facilitated by Circle Mintโs APIs, streamlining the process for businesses and making USDC more user-friendly and widely available across blockchain platforms.
The addition of USDC on Celo enriches the blockchainโs stablecoin applications, such as remittances, savings, lending, and payments. Developers and users now have more opportunities to utilize USDCโs liquidity and swift settlement feature. Celoโs system makes cryptocurrency payments and financial services easily accessible worldwide.
Collaboration for Financial Inclusion
The collaboration between Circle and Celo aims to foster financial inclusion by leveraging Circleโs handling of over $100 billion in transactions annually and Celoโs support for various projects globally. The open-source nature of USDC allows any application to securely manage digital dollars, benefiting numerous DeFi and payment applications.
USDC on Celo has been recognized for its potential in facilitating low-cost remittances, continuous trading, and the creation of savings accounts independent of traditional banking systems. Furthermore, there are proposals being considered to allow gas fees to be paid in USDC through a governance vote.
Celoโs Noteworthy Developments
Over the past year, Celo has made significant strides in the crypto space. Opera announced a new dollar stablecoin wallet on the Celo network for its Android browser, with a focus on using digital assets to facilitate stable and accessible financial transactions in economically challenged areas, starting with Nigeria.
Celo has also received support from Polygon Labs, which recommended the use of its Chain Development Kit (CDK) for Celoโs transition to a Layer 2 (L2) solution on Ethereum. This suggestion came after discussions about moving from Layer 1 to an Ethereum-based Layer 2 using OP Labsโ software known as OP Stack.
Hot Take: Circle and Celo Partnership Expands Access to Stablecoin and Accelerates Financial Inclusion
The integration of Circleโs USD Coin (USDC) on the Celo blockchain marks a significant milestone for both projects. By allowing easy access to USDC on Celoโs mainnet, this collaboration expands the use cases and accessibility of stablecoin applications.
With Circle handling billions of dollars in transactions annually and Celo supporting projects worldwide, this partnership aims to foster financial inclusion by providing secure and user-friendly financial services to individuals globally.
The addition of USDC on Celo opens up opportunities for low-cost remittances, continuous trading, and independent savings accounts. The proposals to enable gas fee payments in USDC further enhance its utility and convenience.
Celoโs mobile-first approach and compatibility with Ethereum make it a promising blockchain platform for real-world applications. Combined with Circleโs expertise in financial services, this partnership has the potential to drive innovation and adoption in the crypto space.
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