USDC Stablecoin Expands to Polkadot Ecosystem,In a strategic move to bolster its market presence, USD Coin (USDC) has launched natively on both the Base and Optimism networks. The announcement came on September 5, marking a significant milestone for Circle, the company behind USDC, seeking to regain market share lost to competitors like Tether (USDT).
A leap toward seamless transactions
The native launch of USDC on these networks allows Circle account holders to send the stablecoin directly from their accounts to either network. This development also extends to Coinbase users, who can now transfer USDC to the Base network. Prior to this, users on the Base network had to rely on a bridged version of USDC, known as “USDbC,” to conduct U.S. dollar transactions.
Circle is also collaborating with ecosystem partners to develop a system that would enable users to swap old, bridged versions of USDC for the new, official versions. This initiative aims to streamline transactions and offer a more efficient user experience. Despite the official launch, several decentralized exchanges on both networks continue to use the old version of the coin, indicating a transitional phase for the stablecoin’s integration.
Facing the competitive landscape
The launch comes at a crucial time for Circle, as it faces increasing competition in the stablecoin market. Earlier this year, the company lost market share to Tether (USDT). Moreover, the stablecoin landscape saw the introduction of new players like First Digital USD (FDUSD) in June and PayPal USD (PYUSD) in August. The native launch on Base and Optimism networks is part of Circle’s broader strategy to regain its footing in the competitive stablecoin arena.
The move also provides a replacement for the USDC.e token previously used on the Optimism network. However, decentralized exchanges on Optimism have yet to integrate the new version, signaling that the transition is still in progress.
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