In Cooperation with Circle, everything in Algorand will Show the Way
The Algorand Foundation has partnered with cryptocurrency FinTech company Circle to launch the USDC stablecoin on the latter's blockchain. This will allow USDC to leverage Algorand's infrastructure to improve transaction efficiency and promotion opportunities.
USDC is a stable currency pegged to the US dollar. USDC was developed by the CENTER consortium, which is a joint venture between Circle and cryptocurrency exchange Coinbase. USDC is the second largest stablecoin with a market cap of $928.515 million (second only to Tether). Earlier this year, Algorand also teamed up with Tether to integrate the USDT stablecoin.
What services will the partnership provide?
Circle will add a set of features to the Algorand blockchain, which will increase efficiency, according to a June 24, 2020 report.
Why did Circle choose Algorand?
Algorand offers many benefits and makes it the perfect choice for the USDC. Based on these advantages, Tether chose Algorand to launch its stablecoin.
High scalability and throughput - Algorand provides high linear scalability and throughput in excess of 1000 TPS, which other blockchain platforms cannot provide at the same time. This means that any USDC transaction will be instant and confirmed within a few seconds. It is the fastest and safest way to send money around the world.
High level of security.
Through the random selection process involved in the PPoS consensus mechanism, Algorand can mitigate counterparty risks and security related transactions. This makes USDC transactions very secure, thus ensuring a healthy economy.
Algorand Enterprise Level Infrastructure - Collaborative Chaining Function Algorand introduces enterprise blockchain functions into its protocol. This feature allows USDC to be used in a variety of use cases, which provides more flexibility.
Micro Payments Affordable - At a basic level, Algorand does not need to pay transaction fees, so USDC transactions on the Algorand chain have very low transaction fees. This means that smaller amounts can be sent easily, which enables micro payment functionality.
What does this mean for Algorand?
Thanks to this announcement, Algorand is now at a critical juncture. The two major stablecoins, Tether and USDC, are now on Algorand, making it the only protocol with two outstanding stablecoins after Ethereum. In addition to that, the Marshall Islands are creating their Central Bank Digital Currency (CBDC). Of course, the future for Algorand is very bright.
How does the USDC drive Algorand's growth?
USDC Usage Continues to Grow - USDC is the fastest growing stablecoin because hundreds of fintech companies use USDC extensively in their products and services. This is clearly seen from the fact that the USDC trading volume has exceeded $50 billion and has issued USDC worth $2.5 billion since its release. With the increase in global demand for digital dollars, USDC turnover has increased by about 100% over the past six months, and the current turnover is approximately $940 million. Stablecoins are mainly used on platforms such as Compound, Maker, REN, and Nuo.
The core investor group, Circle Internet Financials, has some impressive names in its investor portfolio. The list includes the largest Chinese cryptocurrency mining companies Bitmain, Goldman Sachs, Breyer Capital (from Jim Breyer of Facebook), IDG Capital (from Baidu, Tencent), General Catalyst (AirBnB, Snapchat), Accel Partners, Digital Currency Group, Block Chain Capit.