Circle to launch USDC stablecoin in the Cosmos ecosystem

The stablecoin USD Coin (USDC) from the issuer Circle will be launched in the Cosmos ecosystem. The issuing platform will be the Noble project.

We’re excited to bring USDC to @Cosmos! USDC is expected to launch on @noble_xyz soon, stay tuned for details. #IBC https://t.co/eqU8wno43F

— Circle (@circle) March 28, 2023

The Noble team said that USDC is the first \”stablecoin\” that is a \”highly liquid and fully collateralised\” asset in a network connected to the Cosmos Inter-Blockchain Communication protocol.

In their view, the stablecoin’s integration will address many of the problems currently faced by Cosmos users trying to move funds from one network to another.

\”This integration will be a liquidity catalyst in Cosmos worth hundreds of millions of dollars in the coming months and will be aimed at addressing the problems faced by users and applications when interacting with bridge assets sourced from other ecosystems,\” the project representatives added.

The company did not specify a precise launch date for the stablecoin, but advised to stay tuned for updates.

The issuance of USDC is the first step in Noble’s global plans. In the future, developers see their project as a gateway for other cryptocurrencies in the Cosmos ecosystem.

Access to the main stablecoins in the blockchain is currently via bridges. There are around 100 different variants of wrapped USDC in the network.

On March 11, USDC lost parity with the dollar after reports that Circle held part of the asset’s reserve at the collapsed Silicon Valley Bank (SVB) totaling $3.3 billion.

The company immediately assured that they were using corporate funds and external capital to support the stablecoin. Later Circle, as with other SVB depositors, obtained full access to the deposits.

According to Arkham, since March 10 the issuer has burned about 6.2 billion tokens.

After parity was restored, Circle entered into an agreement with the Gibraltar-based Xapo Bank to bypass \”costly and time-consuming\” SWIFT payments.