Cryptocurrencies

Stellar to Add Support for USDC Stablecoin, Opening Up Dollar-Backed Remittances

Stellar Development Foundation CEO Denelle Dixon

USDC is being added to its third blockchain: Stellar.

Announced Thursday during the Stellar Development Foundation’s quarterly review call, the addition of the dollar-backed stablecoin seeks to bolster Stellar’s standing as a cross-border payments network.

“We are focused on creating equitable access to the financial system by building a global network that delivers services to users regardless of their geography,” Stellar Development Foundation CEO Denelle Dixon said in a statement, adding: 

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“The addition of USDC to Stellar will allow us to continue to expand our global reach in pursuit of this mission while opening up new avenues for growth and innovation for the developers and businesses building on the network.”

According to CENTRE – the USDC consortium jointly led by Circle and Coinbase – there are around 2.8 billion USDC in circulation. Stellar, which is primarily used by financial institutions for cross-border transactions, has 4.6 million accounts. 

Stellar will be the third official chain for USDC, having launched on Ethereum and expanding to Algorand in June 2020. Stellar says the coin should be available on its network by January 2021.

Read more: Circle, Coinbase Bring USDC Stablecoin to Algorand’s Blockchain

Related: FSB Recommends Stablecoin (Libra) Safeguards as G7 Continues Blockade

Launched in 2018, USDC is the second-largest stablecoin by market capitalization, with $2.75 billion, trailing Tether’s USDT, with a multichain market cap of $16.17 billion, according to data compiled by Messari.

The Stellar addition is part of the CENTRE’s multichain approach to USDC.

“We value the increased interoperability and wide range of developers that the Stellar network brings to the table, and look forward to seeing how adding a strong and stable USD anchor to Stellar grows its ecosystem and its importance as a platform driving global financial inclusion,” Circle CEO Jeremy Allaire said in a statement. 

The next version of the Stellar protocol will be deployed in Q4 with a pair of new features, Stellar’s Justin Rice said on the call.

Added Dixon:

“Just having USDC is going to open up more opportunities and corridors.” 

Stellar also announced the dates for its second Meridian conference, a free virtual event held this year Nov. 16-20.

Zack Seward contributed reporting.

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