USDC, one of the most popular stablecoins in the crypto market, has announced that it will be issued on Tezos, bringing the total number of networks supported to 4.
Hundreds of products, companies, and services in various niches currently support the USDC standard, which can help the stablecoin gain ground in the crypto space.
With a market capitalization of over $ 25 billion, USDC is the eighth largest cryptocurrency on the market and the second largest stablecoin after Tether (USDT) according to CoinGecko data.
The approval of USDC on Tezos will further accelerate the use of the stablecoin in the coming months, especially given the rumors of future support for other networks in the near future.
According to the statement, USDC’s issuance on Tezos will be completed in the coming months, with the center planning to provide more updates and details in the coming days.
Center, the organization behind the stablecoin, was founded in 2018 by Coinbase and Circle. Since then, USDC has partnered with some of the biggest names in the blockchain and crypto industry, which has allowed the stablecoin to grow significantly.
In the past 6 months, USDC’s market cap has increased more than sixfold, having started the year with a capitalization of $ 4 million and ending at approximately $ 25 million in June, a milestone that marked as early as June 21 was exceeded.
Tezos continues to expand its ecosystem
Tezos was selected by Center as one of the blockchains that USDC issues natively due to its energy-efficient proof-of-stake blockchain with on-chain governance. These network benefits have also resulted in its activity increasing by over 1200% over the past year.
With concerns about the environmental impact of proof-of-stake consensus algorithms growing, Tezos has become one of the most popular alternatives to Ethereum and other networks, especially when it comes to decentralized finance (DEFI) and non-fungible tokens (NFTs).
One of the main reasons for Tezos’ success in these two areas is the low gas prices that are the result of six network upgrades, as well as improved token standards, transaction speeds and scalability.
In addition to on-chain governance, these functions have resulted in great support from a dedicated community.
In addition to being home to Hic Et Nunc, the largest NFT marketplace, Teazos has been selected for technical partnerships with 2 of the world’s greatest F1 teams: Red Bull Racing Honda and McLaren Racing.
More networks could be on the horizon
According to a report from CoinDesk, USDC could be spent on 8-10 more networks in the near future, with Tezos just being the first on the list.
“We assume that USDC will be available for Avalanche, Celo, Flow, Hedera, Kava, Nervos, Polkadot, Stacks, Tezos and Tron in the coming months,” says the draft announcement received from CoinDesk.
Currently, USDC is issued on Ethereum, Algorand, Stellar and Solana, with Tezos being the closest network to support the stablecoin.
As other blockchain networks capitalize on the demand for Ethereum alternatives, the potential expansion could allow USDC to gain ground in the race against Tether.
Stablecoins have become the target of increasing scrutiny lately. Although widely used, only a few have been officially approved.
Such was the case with the New York Attorney General’s actions against Tether, as well as senior Federal Reserve officials who identified Tether as a potential “financial stability challenge” currently being monitored by the government.
In this regard, USDC could have the upper hand as it took a more regulatory-friendly approach compared to its counterparts as Center secured the license to operate and demonstrated that USDC is fully backed by US dollars.