According to the Celo Foundation, Circle’s USD Coin (USDC) will go native on the Celo blockchain to enhance real-world use cases. The collaboration aims to leverage Celo’s mobile-first user base in regions with high blockchain adoption.
Quick Take:
- Circle’s USD Coin (USDC) is set to launch natively on the Celo blockchain.
- USDC aims to expand use cases and boost Celo’s real-world asset capabilities.
- The collaboration positions USDC as the gas currency for the Celo ecosystem.
- This partnership showcases Circle’s ongoing global expansion and Celo’s mission of creating economic prosperity for all.
Circle’s USDC will join Celo’s native proof-of-stake governance token, CELO. Moreover, the Celo blockchain is also transitioning from an Ethereum Virtual Machine-compatible layer-1 chain to an Ethereum layer-2 protocol.
The integration positions USDC as the gas currency for the Celo ecosystem. However, this is subject to a community vote on an upcoming proposal. The collaboration between both firms is expected to offer significant advantages in utility and user accessibility.
Key Benefits of Native USDC on the Celo Blockchain
The introduction of native USDC on Celo could lead to several benefits. As a regulated stablecoin, USDC will allow easy redemption at a 1:1 ratio with US dollars. It facilitates institutional on-and-off ramps, including Circle Mint, contributing to a seamless experience for users.
Moreover, the integration provides businesses and developers with a secure and efficient mobile payment system and a digital dollar store. Celo is known for its emphasis on mobility and compatibility with Ethereum, which aligns with the regenerative finance movement.
The Celo blockchain is carbon-neutral and mobile-first, which aims to improve the user experience in emerging economies. Circle and Celo’s partnership looks to broaden USDC access and further Celo’s mission of creating economic prosperity for all.
The senior business development manager at Circle, Shamus Noonan said,
“This partnership will help broaden access for USDC and leverage Celo’s mobile-first user-base in regions where blockchain adoption is highest.”
Circle Continues to Expand Globally
Circle is continuing to spread its wings worldwide. Recently, the firm acquired a conditional registration as a virtual assets service provider in France and a strategic partnership with Japanese financial services firm SBI.
The collaboration with Celo further strengthens Circle’s position in the blockchain and cryptocurrency space. They are committed to providing innovative solutions and expanding global access to digital assets.
With a market cap exceeding $26.7 billion, USDC is the second-largest stablecoin after Tether (USDT), with a market cap of $96.1 billion. Meanwhile, CELO, trading at $0.681 and experiencing a 1.50% increase in the last 24 hours.
Celo community members anticipate an additional governance proposal from cLabs that will allow users to pay for gas fees with native USDC. This step could solidify USDC’s position within the Celo ecosystem by being a key player in the network’s continued growth.
