During the conference ” converge22 in New York, Circle reported that USDC will be available on the Arbitrum, NEAR, Optimism and Polkadot networks by the end of the year. We also learn that crypto will enter Cosmos at the beginning of 2023. The issuer of USD Coin (USDC) also announces the launch of an inter-chain transfer protocol.
“The multi-chain expansion aims to increase USDC’s native availability from eight to thirteen ecosystems. Developers and users relying on USDC benefit from greater liquidity and interoperability within the crypto economy. IBC ultimately enables USDC to function as a universal dollar liquidity layer. It is the most capital-efficient way to transport value through the ecosystem. »
USDC soon available natively on Cosmos
USDC, one of largest stablecoins in the world, will soon be available natively on Cosmos. In order to create a generic asset issuance chain secured by Cosmos, Circle works with blockchain validation companies:
- Strangelove Labs, with support from Informal Systems
- Iqlusion
- Osmosis Labs
USDC will be available on the network in early 2023. Developers and users will be able to access the asset through the IBC protocol, the co-founder of IBC said.‘Iqlusion. ” At iqlusion, we apply our expert knowledge of cryptography, distributed systems, hardware security, and hybrid cloud infrastructure to building and operating tomorrow’s crypto and DeFi networks. We believe the best solutions are Created by people, for people. Technologies should aim to improve existing inefficient structures and therefore increase safety. »
USDC has been talking to multiple networks, including Cosmos, for over a year. It is difficult for the firm to navigate such a vast ecosystem. Its objective is to arrive at a standardized solution. The firm said: We are defining a standard form of USDC through the Cosmos blockchain “.
USDC on Cosmos boosted by dYdX
USDC circulation is linked to dYdX. The platform had announced its withdrawal from the Ethereum chain to cosmos. ” It is very important for us to support the launch of dYdX v4. He is a heavy user of USDC said Manian. As the strength of the Cosmos ecosystem lies in its DeFi protocols.
The most popular DeFi asset (USDC) is essential in the network. Every DeFi project that launches on Cosmos will have functional fiat access on apps. Without the need for gateways or wrapped assets. ” What we’re trying to do from a software architecture perspective is to minimize security risks and rely on a proven IBC stack, not some of the more immature bridging protocols. “, did he declare.
Currently, USDC is available for Cosmos Channels through:
- Gravity;
- Axelar.
The future of the Cosmos Hub
Cosmos recently revealed its intention to collaborate with the Cosmos Hub, an independent blockchain, to revamp the tokenomics of the ATOM token. This will ensure that the Hub will be at the center of secure economic scaling.
By integrating USDC into its network, Manian believes the stablecoin will become a great source of value for the cross-chain planner. Since this cross-chain market offers opportunities for maximum extractable value (MEV), there will therefore be an alignment of value accumulation between USDC and ATOM.
Resistance to censorship remains difficult
USDC is the most widely used DeFi asset. It is issued by a centralized institution, which makes it non-censorship resistant. Shortly after the US Treasury sanctioned Tornado Cash, Circle added 45 Ethereum addresses named by the Office of Foreign Assets Control (OFAC) to its blacklist, making it illegal for any US citizen to interact with the addresses.
“We will continue to experiment in the Cosmos, and see how individual channels want to handle the lack of censorship resistance.said Manian.
Conclusion
“We will most likely give USDC the ability to block an IBC channel in our implementation, and it will be interesting to see how that plays out“, he added. The industry has the ability to remove USDC from the crypto ecosystem, it basically comes down to a question of how the US government views its interests.
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