USD Coin (USDC), a joint venture between Circle and Coinbase is set to launch on Algorand blockchain, the Algorand Foundation announced today. This makes Algorand the only protocol after Ethereum to have two prominent stablecoins, sources said.
USDC currently ranks as the second-largest stablecoin by market cap. The coin has reportedly issued over $2.5 billion to date, with the stablecoin being used to power more than $50 billion in transactions so far.
Converting funds into stable tokens
The integration will enable customers to use Circle API’s or Circle business accounts to convert funds from their bank account or card network into stable tokens on the Algorand blockchain.
“As more financial institutions and enterprises look to build decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated, and widely accepted stablecoin”, Fangfang Chen, COO at the Algorand Foundation said in a statement.
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In February this year, Tether, a blockchain-enabled platform, went live on Algorand 2.0.
The Tether pairing has immediate transaction finality and is confirmed within seconds, presenting a fast and secure way to send money around the world, according to people familiar with the matter.
Developing financial applications
Circle will also provide an API allowing payments between USDC on the Algorand and Etherum blockchains.
Circle co-founder and CEO, Jeremy Allaire, noted that the combination of USDC and Circle Platform Services with the Algorand blockchain will create a foundation for developing a wide range of scalable, secure, and compliant financial applications.