USDC, the stablecoin jointly founded by Circle and Coinbase, was initially launched as an Ethereum-based token. After Center, the consortium that manages USDC, added support for the Algorand blockchain, it has announced that Stellar will be the third blockchain to support USDC. The rollout should take place sometime in the first quarter of 2021.
USDC is a cryptocurrency that follows the value of USD. One USDC is always worth one USD – hence the name stablecoin. When issuing new USDC, USDC partners keep some USD aside in bank accounts.
These accounts are checked periodically to show that there are as many USDC in circulation as there are USD in these accounts. There are currently 2.8 billion USDC in circulation.
Stable coins offer some flexibility in storing value because they don̵
If you want to send USDC on the Stellar blockchain, transactions should be faster and cheaper. Basically, you have to choose the channel you are sending USDC through – Ethereum, Stellar or Algorand. When sending from one switch to another, or from one wallet provider to another, you need to make sure that both support USDC on that particular blockchain.
circle has also developed a multichain USDC swap API. Authorized developers can use this API for cross-chain swaps if, for example, liquidity problems arise.
If enough developers use this swap API, it should improve the experience for the end user. You don’t need to pay as much attention to the blockchain that you use to send and receive USDC.
So this is still a work in progress. Some products may focus on a specific blockchain, while others allow you to choose between USDC via Ethereum, USDC via Algorand, or USDC via Stellar. Others may use an abstraction layer to allow you to transparently send USDC from an Ethereum wallet to a Stellar wallet. There will be some swaps behind the scenes.