Circle’s USDC to launch on Cosmos
This is the first time since the collapse of Terra's UST that Cosmos will have a native stablecoin issued on the blockchain.
Circle first announced its intent to launch on Cosmos in September 2022, when it shared plans to make USDC available on five additional blockchains, including Arbitrum, NEAR, Optimism, and Polkadot.
Noble, an issuance chain built on Cosmos, will act as Circle’s issuance partner. The protocol said that this is the first time over 50 IBC-enabled blockchains on the network will have access to native USDC.
This is a huge moment for our ecosystem.@Cosmos has never had a native, fiat-backed stablecoin that is highly liquid & fully collateralized.
For the first time in @Cosmos history, 50+ IBC-enabled blockchains (& counting!) will soon be able to access USDC natively via IBC.
— Noble (@noble_xyz) March 28, 2023
This will also be the first time a highly liquid stablecoin is issued on the blockchain since the collapse of Terra’s UST. Some estimates show there are over 100 different bridged USDC assets currently on the network, highlighting the need for a native stablecoin.
The launch was propelled by dYdX’s announcement that it would be launching on Cosmos. The popular decentralized exchange announced plans to build a proprietary IBC-enabled app chain, opening up its service to millions of Cosmos users.
“This integration will catalyze hundreds of millions of dollars in liquidity over the coming months in Cosmos, and will seek to rectify the challenges that users and app chains face when interacting with bridged assets sourced from other ecosystems,” Noble said in an announcement.
“In the future, we believe that hundreds of highly liquid, well-adopted Cosmos blockchains will exist. Every blockchain needs a canonical and fungible version of USDC, and Noble exists to fulfill this critical need.”