Circle’s USDC Stablecoin to Launch on Six New Blockchains
Circle Internet Financial, the organization in charge of managing USDC, is set to announce the stablecoin’s launch on six new blockchains. The new blockchains include Polygon PoS, Base, Polkadot, NEAR, Optimism, and Cosmos via the Noble network. This move comes after Circle and Coinbase reorganized their relationship and disbanded the Centre Consortium. Coinbase also acquired a stake in Circle.
Key Points:
– USDC was already available on Ethereum, Avalanche, Arbitrum, Stellar, Algorand, Tron, Flow, Solana, and Hedera.
– The addition of more blockchains could boost adoption of USDC.
– USDC has been losing market share to Tether, the world’s biggest stablecoin, and PayPal’s stablecoin.
– Avivah Litan, a senior blockchain industry analyst with Gartner, argues that adding more protocols won’t change people’s preference for stablecoins.
– Money is flowing out of the chains, and adding more chains won’t reverse this trend.
Hot Take:
While Circle’s decision to launch USDC on six new blockchains aims to expand the stablecoin’s reach, it may not be enough to compete with the dominance of Tether and PayPal’s stablecoin. The market share of USDC has been declining, and simply offering support for more blockchains may not reverse this trend. It remains to be seen whether this move will significantly boost adoption of USDC among crypto users.
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