The Celo Foundation has announced that Circle’s USD Coin (USDC) will be launching natively on the Celo blockchain.
This move aims to expand the use cases for real-world assets on Celo and increase the convertibility of USDC into fiat currencies. USDC will join Celo’s governance token, CELO, as the blockchain transitions from an Ethereum Virtual Machine-compatible layer-1 chain to an Ethereum layer-2 protocol.
The Celo community will vote on a proposal to make USDC the gas currency for the ecosystem. Celo is part of the regenerative finance movement and places an emphasis on being environmentally friendly and mobile-first.
The integration of USDC will also give institutional and enterprise users access to the Circle Mint on/off-ramp, allowing for greater activity on Celo. The Celo Foundation has highlighted that this partnership will help broaden access for USDC and leverage Celo’s mobile-first user base in regions with high blockchain adoption.
Mento Lab, which already issues the cUSD stablecoin on Celo, will also be launching stablecoins pegged to other fiat currencies, such as the Brazilian real and West African CFA franc.