USDC Set to Launch on Cosmos Blockchain
Circle’s USDC, the second-largest stablecoin in the crypto market, is preparing for its launch on the Cosmos blockchain.
USDC will soon be available on Cosmos, marking its arrival as the second stablecoin on this chain following the collapse of the algorithmic stablecoin UST.
The integration will take place on Noble, a Cosmos-based chain, making it the first time that 50 blockchains within the Inter-Blockchain Communication (IBC) ecosystem will have access to USDC.
We are excited to announce that Noble is bringing native #USDC to the @Cosmos and boundless Inter-Blockchain Communication (IBC) ecosystem in partnership with @Circle! ✨ https://t.co/wLTDW3YNSz
— Noble (@noble_xyz) March 28, 2023
Noble stated:
“This integration will act as a catalyst for hundreds of millions of USD in liquidity on Cosmos in the coming months. It will also address the challenges faced by users and blockchains when interacting with assets from other ecosystems.”
Circle’s intention to expand USDC to Cosmos was first announced in September 2022. At that time, Circle revealed plans to integrate USDC on four additional chains: Arbitrum, NEAR, Optimism, and Polkadot.
In June 2022, the Ethereum-based DEX dYdX announced its plan to build its own blockchain on Cosmos to support its growing decentralization efforts.
Recently, USDC experienced a 15% drop in market capitalization. The stablecoin faced a significant depeg to as low as $0.87 due to the collapse of Silicon Valley Bank. Although USDC quickly rebounded to the $1 mark, it has lost some trust from investors.
Meanwhile, Circle has committed to reclaiming the $3.3 billion stuck at the bank and plans to issue an additional $0.7 billion USDC. Additionally, the company is set to launch the Cross-Chain Transfer Protocol (CCTP) in Q1 2023, which operates on a simple burn-mint mechanism through smart contracts to address current cross-chain security issues.
