Algorand Foundation has announced that it has established an alliance with Circle to enable fiat-backed stablecoin on its blockchain. Algorand is a non-profit organization that has been in the blockchain industry to revolutionize and steer the market forward. USDC is dubbed as one of the fastest-growing stablecoin that was developed by the Centre Consortium, co-founded by Coinbase and Circle.
As the coronavirus pandemic continues threatening markets and increasing the volatility in most digital assets, USD coin popularity is significantly growing.
As a result of the agreement, Circle will now be supporting digital dollar stablecoins that are interoperable with the USD coin. It is a groundbreaking move that will enable Circle APIs customers and those of Circle Business Accounts to interchangeably move funds from their bank accounts to the Algorand blockchain at ease.
This will enhance the customers’ experience on speed, system security, and also the throughput capability that comes with the Algorand blockchain. “Growth in mainstream financial use cases is driving more demand for high-throughput payments and finance-optimized blockchain infrastructure,” said Jeremy Allaire, the co-founder, and CEO of Circle. “The combination of USDC and Circle Platform will Create a foundation for developing a wide range of scalable, secure, and compliant financial applications” he added.
Besides that, the two entities will be at the forefront of promoting the benefits that come with utilizing USDC in financial institutions. “As more financial institutions and enterprises look to build decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated, and widely accepted stablecoin. We are excited to partner with Circle to provide financial institutions with the tools they need to leverage the unique benefits of USDC and offer enterprise-grade solutions to build real-world use cases,” said Fangfang Chen, COO of Algorand Foundation.
In the third quarter of 2020, Circle is anticipating to be providing the wider industry with its enhanced and easy to use API to enable transactions between USDC on Ethereum and USDC on Algorand. It is a feature that will work to reduce friction in diverse digital wallets that use varied blockchain based on USDC.
USDC is issued by regulated financial institutions, and backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars.
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