Avalanche network is introducing a native version of USDC stablecoin backed by cash and liquid cash equivalents in collaboration with Circle.
Ava Labs President, John Wu, says that the collaboration would enable direct minting of USDC on Avalanche, cutting on fees and complexity of dealing with the stablecoins.
Wu expects the new partnership to expand the DeFi activities within the network, with the amount bridged to Avalanche currently standing at $1.3 billion.
The executive notes that despite the USDT market capitalization being larger than that of USDC, the latter is used more and is the most trusted by US investors.
The move is expected to streamline the adoption of Decentralized Finance in the protocol. The use of stablecoins is an emerging space for networks looking to compete with the Ethereum blockchain.
Avalanche users were initially required to bridge USDC from the Ethereum ecosystem to the smart contract protocol.
Avalanche is the seventh protocol to integrate with USDC from Circle. Other networks already working with the Boston based firm include Tron, Hedera, Algorand, Ethereum, Solana, and Stellar.
Source: Coindesk