Tag: financial infrastructure

Circle Introduces Native USDC on OP Mainnet: What It Means for the Ecosystem

Circle has announced the upcoming launch of native USDC on the OP Mainnet. The announcement, part of Circle’s #StableSeptember series, outlines the benefits and changes that will accompany this development.

Native USDC: A New Standard for the Optimism’s OP Mainnet

According to the official blog post , USDC issued by Circle will become the “official form of USDC for the [OP Mainnet] ecosystem.” This move is expected to gradually replace the currently circulating bridged USDC liquidity originating from Ethereum.

The introduction of native USDC is poised to enhance the OP Mainnet’s financial infrastructure, potentially attracting more institutional investors and fostering greater liquidity. However, it remains to be seen how this will impact the broader stablecoin market and whether native USDC will become the de facto standard for the OP Mainnet.

Key Features and Benefits

The native USDC will offer OP Mainnet users several advantages:

Dollar-Backed Stability: The stablecoin is fully reserved and redeemable at a 1:1 ratio for US dollars.

Institutional On/Off-Ramps: The new form of USDC will facilitate easier access to institutional-level financial mechanisms.

Technical Details

Token Symbol for Bridged USDC from Ethereum: USDC.e

Token Address for Bridged USDC: 0x7f5c764cbc14f9669b88837ca1490cca17c31607

Token Symbol for Native USDC: USDC

Token Address for Native USDC: 0x0b2C639c533813f4Aa9D7837CAf62653d097Ff85

Transition and Liquidity

Circle and Optimism will collaborate to ensure a smooth transition of liquidity from the Ethereum-bridged USDC (now renamed as USDC.e) to the native USDC. The OP Mainnet bridge will continue to operate as usual, with no immediate changes planned.Ecosystem Expansion

Circle has been strategically expanding its USDC ecosystem across various platforms. In addition to the OP Mainnet, Circle has also minted native USDC on Coinbase’s Base, Solana, and primarily on Ethereum.

Recently, Circle entered into a partnership with Mercado Pago, Latin America’s largest fintech company, to meet the growing demand for trusted digital dollars in Chile. This collaboration aims to provide millions of users with access to USDC for seamless transactions.

Serving as a store of value akin to fiat USD, Circle has released a comprehensive guide detailing how to transfer USDC to Phantom, which is Solana’s premier web and mobile wallet.

Furthermore, Circle has introduced the Cross-Chain Transfer Protocol (CCTP), enabling the exchange of native USDC between supported networks such as Ethereum, Arbitrum, and Avalanche.

NBG Georgia Shortlists Ripple Among Tech Firms for CBDC Pilot

The National Bank of Georgia (NBG) is propelling forward with its Central Bank Digital Currency (CBDC) venture, dubbed the Digital GEL Pilot Project. The bank is now in the phase of scouting for a singular technology ally to facilitate the Limited Access Live Pilot Environment. This environment aims to scrutinize the technological prowess and possible applicative spheres of the CBDC system through an array of use cases.

Post an extensive research tenure and meticulous deliberation, NBG has culled a list of nine enterprises deemed fit for this exploratory journey. These firms have showcased ample technological potential, maturity, capacity, pertinent experience, and enthusiasm for on-field examination. The notable list comprises Augentic GmbH, Bitt Inc., Broxus Holdings Ltd., Currency Network Ltd., DCM Corp Limited, eCurrency Mint Inc., FARI Solutions Ltd., Ripple Labs, Inc., and Sovereign Wallet Co., Ltd. At the current juncture, NBG maintains a technology-neutral stance, weighing the varied technological solutions these shortlisted companies can contribute to the Digital GEL project.

A Central Bank Digital Currency (CBDC) is essentially a digital form of a country’s existing currency, which is issued by the country’s central bank. Unlike decentralized cryptocurrencies like Bitcoin, a CBDC is centralized and enjoys the same legal status as physical banknotes and coins. It’s an endeavor to modernize the financial infrastructure and respond to the digital economy’s exigencies.

Among the shortlisted entities, Ripple Labs, Inc. holds a unique position with its Ripple CBDC solution. This solution aims to provide a neutral bridge between different currencies, allowing for frictionless value transfer, which can be particularly beneficial in the realm of cross-border transactions. The Ripple CBDC platform could potentially offer a robust foundation for the Digital GEL project, aligning with the objectives of fostering a seamless and inclusive financial ecosystem.

Upon concluding the selection phase, NBG aspires to earmark a single technology partner to transition into the pilot phase. This phase will test the CBDC platform in a restricted-duration live setting, evaluating the pragmatic use cases therein. The anticipation surrounding this pivotal pilot project is palpable, signifying a significant stride towards modernizing Georgia’s monetary landscape and embracing the digital currency epoch.

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