USDC stablecoin will be developed cross-chain oriented, supporting 5 new blockchains

The company Circle intends to make USDC a stablecoin supported on multiple blockchain platforms to solve the problem of liquidity split.

USDC stablecoin will be developed cross-chain oriented, supporting 5 new blockchains

Circle, the company behind the crypto market's second-largest stablecoin USDC, said it will soon expand USDC to include five new blockchains to strengthen market share and increase user liquidity.

Accordingly, the new platforms that are about to have their USDC versions are Arbitrum, NEAR, Optimism, Polkadot and Flow, bringing the number of blockchains supported to 14, surpassing the number of rival Tether (USDT) for the first time. .

In addition, the company will also build a Cross-Chain Transfer Protocol solution to allow USDC to flow freely between the blockchains in which this stablecoin is present, helping to increase liquidity for blockchain ecosystems as well as reduce problems liquidity dispersion problem facing the crypto industry.

Crypto projects and development teams such as wallets, bridges, payment applications, etc. will benefit from the use of USDC that supports multiple blockchains, thereby streamlining the user experience and increasing darkness. cash flow advantage. Cross-Chain Transfer Protocol is also compatible with other aspects such as trading, investment and NFT.

The new solution will work on a mint-burn mechanism between blockchains. When users transfer USDC, the protocol burns the stablecoin on the old blockchain and reissues it on the new blockchain, ensuring no stablecoin inflation.

Cross-Chain Transfer Protocol at the time of launch will support Ethereum and Avalanche before expanding to the rest of the ecosystem in the near future.

The above is the latest move from Circle to restore and strengthen the position of USDC, a stablecoin that is considered highly reputable, but has been more or less affected by the collapse of the cryptocurrency market during the year. This 2022, as well as the appearance of many new stablecoins built by self-built crypto projects such as Aave, Curve.

FoxCryptoNews summary

Sep 29, 2022

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