USDC, the second largest stablecoin by market cap, was launched on the Avalanche blockchain as a native token. Previously, users who wanted to get USDC in Avalanche had to link it through Ethereum. Now, Circle, the issuer of USD Coins (USDC), will allow users to mint tokens directly on Avalanche’s C Channel, saving on fees and eliminating the need for bridges to wrap that token.
Native USDC support on Avalanche
Circle, the issuer of the USDC, has announced the launch of its stablecoin on the Avalanche network. Circle expects this development to create new opportunities and payment options for projects specifically developed in the Avalanche ecosystem. While Avalanche users already had the stablecoin on the chain, it was in a packed state and users had to link it to its Ethereum version.
Some felt that this caused friction due to the associated costs. Now, Circle Platform users will be able to hit and trade USDC directly on Avalanche’s C Channel. Jeremy Allaire, CEO of Circle, said:
With USDC being the primary digital dollar currency for the decentralized economy, this integration will be pivotal for developers and communities who wish to participate in one of the fastest growing organically-growing ecosystems in crypto.
John Wu, president of Ava Labs, also commented on the launch, saying the partnership could help users resolve issues related to using Fiat for different purposes. He underlined:
A fundamental restructuring of legacy payments and financial infrastructure is not only warranted but overdue. Together, Avalanche and Circle will pioneer solutions to these systemic challenges.
Circle’s multi-channel strategy
The latter initiative is part of an expansion policy that Circle announced in June, aimed at launching ten additional blockchains, with the aim of increasing its presence in challenge environments. The execution of this strategy has progressed since then, with the launch of USDC on Tron and now Avalanche.
This policy of expansion has been cited as one of the reasons for the growth of USDC this year, which has seen a 10-fold increase in market capitalization. As of January 1, there were just over 4 billion USDC in circulation, and now there are 40 billion coins, and that number continues to increase. However, even with all this growth, it is still second behind the USDT, which has a market cap of over $ 77 billion.
What do you think of the USDC launch on Avalanche? Tell us in the comments section below.
News, Avalanche, Circle, expansion, Jeremy Allaire, John Wu, multi-channel, USDC