Victor Ugochukwu · Dec 14, 2020 . 5min read
USDC embraces Stellar Blockchain after Ethereum and Algorand Blockchain
Stellar blockchain becomes 3rd blockchain for USDC after launching on the Algorand blockchain, which decreased its dependence on Ethereum.
By Komal Joshi · Oct 18, 2020 . 5min read
According to a blog post, the US dollar-pegged stablecoin, USDC controlled by Circle and Coinbase, is coming to the Stellar blockchain. The Circle will append USDC support to Stellar’s vast collection of products by the Q1 of next year. It includes payment tools, infrastructure APIs, and business accounts products. Additionally, this indicates that these businesses can soon commence utilizing the Stellar version of USDC.
Transactions from USDC on Stellar Blockchain to be faster and cheaper
The announcement comes a few months after USDC’s launch on the Algorand (ALGO) blockchain. It decreased its reliance on the Ethereum network that has provided the native support for the native ERC-20 coin since inception. Stellar is an open-source payment technology that bestows numerous similarities with Ripple. Moreover, Stellar intends to connect financial institutions and decrease the cost and time needed for cross-border transfers.
According to the blog post, by sending USDC on the Stellar blockchain, the transactions should be faster and more affordable. However, one has to determine the channel to use to send USDC. It can be Ethereum, Stellar, or Algorand. If one is sending from one exchange to another or from one wallet provider to another, one has to make sure that both aid USDC on that particular blockchain.
USDC is the second-largest Stablecoin
For the uninitiated, USD coin is an Ethereum-based ERC-20 coin. It makes it easy for exchanges, wallets, and other smart contracts to associate with the token. Moreover, it is a cryptocurrency token pegged to the US dollar. Additionally, you give one dollar to the organization that manages the coin, and it’ll give you one USDC token in return.
Presently, USD coin stands as the second-largest stablecoin by market cap. It is the 13th-biggest crypto asset with a capitalization of nearly $2.7 billion. Moreover, the coin is the result of a joint venture comprising of US crypto exchange Coinbase and payments firm Circle.
Conclusively, USDC’s liquidity could help Stellar to accomplish its mission of connecting financial institutions and minimizing the cost and time necessitated for cross-border transfers.
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