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USDC issuer Circle is set to launch the stablecoin natively on the Celo blockchain, a move that aim to further the reach and applicability of digital currencies.
This initiative is set to expand the utility of USDC beyond traditional boundaries, integrating it into Celo’s diverse stablecoin applications, such as remittances, savings, lending, and peer-to-peer transactions.
USDC will be proposed as an official gas currency for the Celo community, a move that promises to streamline transactions and make the payment process more intuitive for users. This integration is expected to foster a more robust ecosystem for stablecoins, catering to a wide range of financial activities from cross-border payments to disbursing aid, an announcement on Wednesday said.
The partnership also plans to introduce institutional on-/off-ramps like Circle Mint, facilitating greater on-chain activity and seamless conversion between USDC and local currencies.
Expanding the Stablecoin Ecosystem
Celo describes itself as a "carbon-negative, mobile-first, EVM-compatible blockchain built for the real world." Celo dApps and projects have a global user-base and over 1,000 projects in more than 150 countries, including mobile wallets Valora and Opera MiniPay, an ultralight 2MB stablecoin wallet in Kenya, Nigeria, and Ghana, with over 1 million users since its September 2023 launch.
According to the two firms, the partnership between Circle and Celo is rooted in a mutual commitment to raise global economic prosperity through the frictionless exchange of value. By bringing USDC onto the Celo platform, both entities aim to combine their strengths to offer enhanced financial services and promote broader financial inclusion.
“This partnership will help broaden access for USDC and leverage Celo’s mobile-first user-base in regions where blockchain adoption is highest,” Shamus Noonan, senior manager of business development at Circle, said.
While USDC prides itself as "the leading regulated digital dollar," USDC, which has 20% of the overall stablecoin market, still lags significantly behind USDT, which has about 70% market share, according to a report from OKX Ventures.
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