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Circle launches USDC on Algorand

Illustration by COO Fangfang Chen of the Algorand Foundation. DigFin

The company behind the USD coin has released an official statement to work with the Algorand Foundation to provide Algorand’s blockchain with a stable coin potential, backed by Fiat.

On June 24, Circle Senior Vice President Josh Hawkins publicly announced the agreement between the two companies, saying the newly formed partnership will allow customers to easily convert funds between card networks and traditional banks to digital dollars the Algorand Blockchain.

He also mentioned some of the benefits of this collaboration, including the ability for users to hold and manage accounts and payment activities through Circle APIs while taking advantage of the speed, security and throughput benefits of Algorand’s blockchain.

In addition to being the fastest growing stablecoin backed by hundreds of companies worldwide, according to Circle, USDC is also one of the few cryptocurrencies that has seen exponential growth of over 100% in circulation since the beginning of the pandemic. To date, more than $ 2.5 billion has been issued, with over $ 50 billion in transactions. With the global demand for digital dollars increasing, USDC has more than $ 940 million in circulation.

“As more and more financial institutions and corporations want to create decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated and widely accepted stable coin,” said Algorand Foundation COO Fangfang Chen in the official press release. She also expressed Algorand’s enthusiasm for working with Circle to provide financial institutions with the tools they need to take advantage of the unique advantages of USDC and provide solutions for businesses to create real-world use cases.

Algorand is the second organization that USDC supports. Meanwhile, CENTER, the company behind USDC’s stablecoin technology, announced support for multi-chain frameworks for the asset, which allow blockchains other than Ethereum to integrate it into their systems.

In their official statement, CENTER points out that Algorand is the first blockchain of many to integrate USDC, as the project was specifically designed for high volume financial applications. Circle uses a token bridge that allows USDC to be exchanged for ERC-20 tokens on the Ethereum blockchain. This enables multi-chain transfers to support use cases, developers, and ecosystems. All stable coins of the Algorand Protocol are covered by fiat reserves.

The collaboration between Algorand and Circle will certainly win other blockchain projects for the newly created multi-chain system. Circle has announced that in the third tax quarter of 2020 they will provide a simpler and more seamless API for transferring payments between USDC at Ethereum and USDC at Algorand to further encourage the participation of other blockchain companies in CENTER’s multi-chain framework.

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