According to official communications, Circle would approve everything related to the Ethereum Merge. On his blog, his administration even said that the stablecoin giant “intends to fully and solely support the proof-of-stake (PoS) chain after the Merger “. But this support for Merge is not 100%: indeed, Ethereum derivatives have not obtained the endorsement of Circle.
Circle, a stab in the back of Ethereum?
As the Merge approaches, the entire crypto universe seems to be boiling. On the one hand, there are miners like Chandler Guo who make sure not to fall into nothingness after September. On the other, we have a Vitalik Buterin who continues to rise to the front of the stage in order to approve his idea of switching to PoS.
Recently, or more precisely yesterday, Circle Internet Financial spoke out on the same subject of the Merge. In its statement, it was said that it will not support Ethereum derivatives after the infamous software update.
That’s what tweeted Bloomberg this day :
” Circle, issuer of the USDC stablecoin, said it will not support Ethereum derivatives when the blockchain network experiences a major software update that is expected to arrive next month. »
His team supported these statements with the following message:
” USDC as an Ethereum asset can only exist as one valid ‘version’ “.
And yet he is pro-Merge
To say that just yesterday Circle pledged full support for Ethereum Merge. In his view, this step is a crucial step in the ” scaling of the Ethereum ecosystem, had reported Cointelegraph.
” USDC has become a building block for Ethereum DeFi innovation. It has facilitated the adoption of L2 solutions and helped expand the set of use cases that today rely on Ethereum’s vast array of capabilities. We understand the responsibility we have to the Ethereum ecosystem and the businesses, developers, and end users that rely on USDC, and we intend to do the right thing. »
As a reminder, the USDC stablecoin is currently the largest dollar-backed asset issued on Ethereum. It is also the largest ERC-20 asset overall, as its market capitalization is valued at $45 billion.
In other words, going without the backing of Circle would be harmful to Ethereum. If the divorce were to be finalized, DeFi applications on the blockchain will be affected, such as the way in which their value is stored there.
Fortunately, the Circle team is the understanding type:
” We understand the responsibility we have to the Ethereum ecosystem and the businesses, developers, and end users that rely on USDC, and we intend to do the right thing. »
But this Cirlce support for The Merge also has conditions. Among other things, there is the fusion between the execution layer of Ethereum and Beacon. Added to this is also its intention not to take charge of a possible forking of type ETHW.
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