The Celo Foundation has revealed plans to launch USDC natively on the Celo blockchain. This move aims to enhance USDC's utility for real-world assets and increase its convertibility with fiat currencies. USDC will join the Celo blockchain alongside its native proof-of-stake governance token, CELO. As part of this transition, the Celo community will vote on a proposal to designate USDC as the ecosystem's gas currency. Celo, known for being carbon neutral and mobile-first, positions itself in the regenerative finance movement, emphasizing mobile technology to enhance user experiences, particularly in emerging economies.
Mento Lab has already issued various stablecoins, including cUSD, cEuro, cREAL (pegged to the Brazilian real), and eXOF (pegged to the West African CFA franc) on the Celo blockchain. With USDC integration, Celo aims to expand access to the stablecoin and leverage its mobile-first user base in regions with high blockchain adoption. The partnership between Celo and Circle, the issuer of USDC, will facilitate institutional and enterprise users' access to Circle Mint ingress/egress, fostering increased activity on the Celo blockchain.
USDC, currently the second-largest stablecoin with a market capitalization of $26.5 billion, is second only to Tether. Circle, the company behind USDC, reportedly filed for an initial public offering (IPO) in the United States in mid-January. Circle has been extending its global presence, obtaining conditional registration as a virtual asset service provider in France in December. Collaborating with Japanese financial services firm SBI, Circle launched USDC in Japan a month ago. Circle has been in partnership with global payments processor Visa since 2020, expanding the collaboration in September by utilizing USDC issued on Ethereum and Solana.
