Stellar Lumens (XLM) Now an Official Chain for USDC: Fiat to Crypto Bridge ContinuesOctober 21, 2020
Stellar continues on its journey as one of the very few blockchains to create a meaningful bond and build a bridge between blockchain technology and the cash system. Instead of seeking to replace the latter, the Stellar Development Fund sees the potential of crypto assets as a bridge to connect the traditional financial system seamlessly, transparently, and securely. To achieve this vision, SDF has made moves and presented the opportunity to various relevant bodies. SDF continues to see to it that remittance becomes as easy as sending emails.
October 15th was another day to celebrate an achievement in the direction of its vision as Stellar became an official chain for USDC. Denelle Dixon, SDF CEO wrote:
“It’s a big day for the Stellar network. We’ve just announced that Stellar is now an official chain for USDC! Combining our strengths – USDC as one of the world’s leading compliant and regulated digital dollar stablecoins and Stellar as a mature network with an unparalleled ability to connect global financial infrastructure – we are positioned to offer USDC and Stellar users a new level of opportunity.”
Since the company behind USDC- Circle is regulated, it gives an extra layer of confidence for both developers and users. Stellar-based USDC can be used by anyone from anywhere as a store of value and redeemed for fiat at any time. There will be no fears of loss at the end of the day. The asset can be used, sent, and received with a low fee and very quickly. The stablecoin will see use cases that the Ethereum-backed version owing to the inherent properties of Stellar Blockchain. Being able to send USDC quickly and with a near-zero fee will be an added advantage for exchanges that are now struggling with huge fees on Ethereum to serve their customers.
WIth the Stellar-based USDC cross-border transactions will be easier than before for financial providers and more importantly for individuals. They will no longer have to wait for three to five business days before recipients receive funds- this is obviously big news for Stellar. Denelle Dixon expressed her excitement:
“What I’m most excited about is what this means for the Stellar ecosystem. At SDF, we worked hard on this partnership because we know the value that this will bring to our ecosystem of businesses and developers.”
For both Stellar and Circle the partnership means a wider adoption and more user base. People who knew USDC before can now easily create a stellar account and use their coins on a more scalable blockchain with a near-zero fee. Stellar holders will also be able to use USDC to complete trades and a store of value. Developers will be able to add the coin in their D’Apps.
Stellar-based USDC will go live in Q1-2021 according to Denelle Dixon.