The Celo Foundation has announced the integration of USD Coin (USDC), a stablecoin issued by Circle, into the Celo blockchain ecosystem. This move is set to bolster the utility of the Celo network by incorporating a major stablecoin, enhancing its real-world asset use cases and fiat-related services. USDC will complement CELO, Celo’s native token, as the network transitions from an Ethereum Virtual Machine compatible Layer-1 to an Ethereum Layer-2 protocol.
USDC Integration Impact
The Celo community is preparing to vote on a proposal to allow USDC to be used for paying transaction fees within the network. Mento Lab is also planning to introduce additional stablecoins on Celo, including cEuro, cREAL, and eXOF, which will join the existing cUSD stablecoin.
Celo is committed to regenerative finance, emphasizing carbon neutrality and mobile-first initiatives. The network targets improving accessibility in developing economies through mobile technology, as demonstrated by the Opera web platform’s recent launch of the MiniPay wallet on Celo for African users. Circle’s Senior Business Development Manager, Shamus Noonan, highlighted the partnership’s potential to extend USDC access to Celo’s mobile-centric user base, especially in regions with high blockchain adoption.
The integration of USDC on Celo is expected to facilitate increased activity for corporate and enterprise users through Circle Mint’s on/off-ramp services. USDC stands as the second-largest stablecoin by market value, and Circle has recently applied for an initial public offering in the United States.
Circle is actively expanding its international presence, having registered as a crypto asset service provider in France and partnered with Japan’s SBI for USDC introduction in the country. Since 2020, Circle has collaborated with Visa, furthering this partnership in September to leverage USDC on Ethereum and Solana networks.