Circle to Launch USDC Stablecoin on Celo Network
Circle will launch its stablecoin USDC on the Layer 1 network Celo, which is transitioning into an Ethereum Layer 2 scaling network.
Technology company Circle announced it will launch USDC, its USD-pegged stablecoin, on the Layer 1 network Celo (CELO) soon transitioning into an Ethereum Layer 2 scaling network. The upcoming governance vote will further decide whether USDC will serve as the designated gas currency for Celo.
“Circle is proud to join the mission-driven Celo ecosystem as a blockchain known for providing fast, low-cost payments worldwide. This partnership will help broaden access for USDC and leverage Celo’s mobile-first user base in regions where blockchain adoption is highest,” said Shamus Noonan, Senior Manager of business Development at Circle, in a written statement.
Celo initially began as a Layer 1 network compatible with the Ethereum Virtual Machine (EVM), focusing on scalability. However, cLabs, the company responsible for developing Celo, proposed shifting the network into an Ethereum Layer 2 scaling protocol. The proposal received majority approval through a vote at the end of that month.
As it becomes an Ethereum Layer 2 network, Celo increasingly presents itself as a blockchain focused on real-world (RWA) assets. This shift aims to enhance cross-border payments and peer-to-peer transactions in developing regions, simplifying the conversion process from local currencies.
At the time of writing, Celo’s native token CELO trades at $0.68, indicating a 5% increase over the preceding 24 hours, according to data from Coinmarketcap.
Circle’s Plans to Expand Global Reach
The forthcoming introduction of USDC on Celo highlights Circle’s commitment to advancing global economic prosperity by facilitating the seamless exchange of value, representing a stride in fulfilling the shared missions of Circle and Celo, striving to harness blockchain technology to foster a more open and equitable financial future.
Circle manages the issuance and governance of USDC, a cryptocurrency pegged to the US dollar and currently the second-largest stablecoin after Tether. Earlier this month, the company submitted confidential documentation for a United States initial public offering (IPO), indicating its plans to transition into a publicly traded entity.
Recently, Circle’s CEO, Jeremy Allaire, expressed optimism about the potential enactment of stablecoin legislation by the United States government in 2024 that will potentially enhance consumer protection, prevent illicit activities, and ensure the stability of financial systems. During his speech at the World Economic Forum, Allaire emphasized that “stablecoin laws are going to be on the books in almost every major global financial market in 2024.”
The introduction of USDC on Celo signals the company’s commitment to advancing global economic prosperity through the seamless exchange of values, promoting a more interconnected financial future.
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