It is common for cryptocurrency-oriented stablecoins to be issued on different blockchains. Tether’s USDT spans more than five blockchains now, and USDC goes down a similar route. Circle will begin issuing this currency on the Stellar blockchain in the near future.
USDC is Coming to Stellar
Many different blockchains on the market today can be sued for different purposes. Albeit all of these chains support their native asset, they can accommodate support for other currencies too. This is evident when looking at tokenized tokens, but it also applies to stablecoins. Circle acknowledges Stellar may be a good for the USDC currency.
The USDC stablecoin has gone through some prominent momentum in 2020. Its market cap has grown to nearly $3 billion, making it a worthy rival to Tether’s USDT. Additionally, there is more USDC trading volume than before. Having the support of additional trading platforms is a positive contributing factor.
To keep the momentum going, Circle decided it was time to branch out. Bringing this stablecoin to other blockchains is a logical decision. After pledging support for Algorand‘s blockchain, Stellar is next on the list. This brings the total number of blockchains supporting USDC to 2021. It will take until Q1 2021 before the rollout occurs, though.
The choice for Stellar makes a lot of sense. Its blockchain is faster and cheaper to use compared to Ethereum. Although the gas fees on Ethereum’s network have come down again, that situation can change at any given moment. Exploring infrastructure designed for a higher throughput is the better course of action.
A Viable Competitor to USDT
This currency, co-founded by Circle and Coinbase, is of great interest to cryptocurrency traders. Thanks to regular audits of USDC accounts, there is a certain degree of transparency. This makes it different from USDT, as it faces a lot of scrutiny regarding its reserves, So far, nothing nefarious has happened, yet some concerns remain.
Another factor that separates USD Coin from the rest is the multichain USDC swap API. Developers can tap this API for crosschain swaps between the supported blockchains. Ultimately, this will eliminate the need for manually choosing the blockchain one wants to use to transfer funds. It is a work in progress, but the option is there.