Circle Expands USDC Stablecoin to Celo Blockchain
In a significant move for cryptocurrency, stablecoin issuer Circle announced that it would launch its popular US-dollar pegged stablecoin, USDC, natively on the Celo blockchain. This development was revealed in a recent press release from The Celo Foundation. Recognized as the second-largest stablecoin by market cap, just behind USDT from Tether, USDC’s expansion to the Celo blockchain marks a notable step in increasing its accessibility and utility. USDC currently ranks as the seventh-largest crypto asset by market capitalization.
Celo’s Mobile-First Approach and Circle’s Strategic Partnership
The Celo protocol, known for being Ethereum Virtual Machine (EVM) compatible and emphasizing a “mobile first” approach, is transitioning to a layer-2 solution. Its native token, CELO, serves multiple functions within its ecosystem, including governance, staking for rewards, and paying reduced transaction fees. According to Isha Varshney, Head of Strategy and Innovation at the Celo Foundation, this partnership with Circle is geared towards driving real-world adoption of cryptocurrencies by bringing more real-world assets (RWAs) on-chain. The Celo ecosystem aims to become the premier platform for stablecoins, capitalizing on their growing use cases as institutional investors enter Web3.
Shamus Noonan, senior manager of business development at Circle, expressed the company’s pride in joining the mission-driven Celo ecosystem. He highlighted the benefits of Celo’s reputation for fast, low-cost payments worldwide and how this partnership will broaden access to USDC, leveraging Celo’s mobile-first user base in regions with high blockchain adoption.
Market Response and Future Prospects
At the time of the announcement, the value of CELO was recorded at $0.680, witnessing a 1.5% increase in the last 24 hours. The collaboration between Circle and Celo is expected to enhance the functionality and reach of USDC, potentially leading to increased adoption and utilization of stablecoins in various global markets, particularly in areas with high mobile usage and growing interest in blockchain technology.