USDC, one of the most popular stablecoins in the crypto market, has announced it will be issued on Tezos, bringing the total of supported networks to 4.
Hundreds of products, companies, and services in different niches support the USDC standard at this time, allowing the stablecoin to gain ground in the crypto space.
With a market capitalization of over $25 billion, USDC is the 8th largest cryptocurrency in the market and the second-largest stablecoin after Tether (USDT), according to CoinGecko data.
By allowing USDC to run on Tezos, the use of the stablecoin is continued to accelerate over the upcoming months, especially considering the rumors of future support for other networks in the near future.
According to the statement, the issuance of USDC on Tezos will be completed in the coming months, with the Centre planning to provide further updates and details in the coming days.
Centre, the organization behind the stablecoin, was founded by Coinbase and Circle back in 2018. Ever since, USDC has formed partnerships with some of the biggest names in the blockchain and crypto industry, which has allowed the stablecoin to grow significantly.
Over the past 6 months, USDC’s market capitalization has grown more than sixfold, having started the year with a $4 million capitalization and ending June at about $25 million, a milestone that was surpassed back on June 21.
Tezos Continues to Expand its Ecosystem
Tezos has been chosen by Centre to be one of the blockchains to natively issue USDC due to its energy-efficient Proof of Stake blockchain with on-chain governance. These benefits of the network have also allowed its activity to grow by over 1200% over the past year.
With increasing concerns around the environmental impact of proof-of-stake consensus algorithms, Tezos has become one of the most popular alternatives to Ethereum and other networks, especially when it comes to the Decentralized Finance (DEFI) and Non-Fungible Token (NFTs) niches.
One of the biggest reasons for Tezos success in these 2 areas is its low gas prices, which are the result of six network upgrades, as well as the improved token standards, transactions speeds, and scalability.
These features, in addition to on-chain governance, have resulted in big support from a dedicated community.
In addition to being home to Hic Et Nunc, the largest NFT marketplace, Teazos have also been chosen for technical partnerships with 2 of the biggest F1 teams in the world: Red Bull Racing Honda and McLaren Racing.
More Networks Could Be on The Horizon
According to a report by CoinDesk, USDC could be issued on 8 to 10 more networks in the near future, with Tezos only being the first on the list.
“We anticipate that in the coming months USDC will become available on Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos, and Tron,” states the draft announcement obtained by CoinDesk.
At this time, USDC is being issued on Ethereum, Algorand, Stellar, and Solana, with Tezos being the next network to support the stablecoin.
With other blockchain networks taking advantage of the demand for Ethereum alternatives, the potential expansion could allow USDC to gain ground in its race against Tether.
Stablecoins have recently become the target of increasing scrutiny. While they are widely used, few have been given regulatory approval.
This was the case of the New York Attorney General Office’s actions against Tether, as well as senior U.S. Federal Reserve officials referring to Tether as a potential “financial stability challenge” currently being watched by the government.
In this regard, USDC could have the upper hand as it has taken a more regulatory-friendly approach when compared to its counterparts, as Centre secured licensing to operate and has verified that USDC is fully backed by US dollars.