- USD Coin (USDC) is set to be available on the Cosmos ecosystem through Noble network.
- Noble team has announced that it will be the first native, fiat-backed stablecoin.
- The Cosmos Inter-Blockchain Communication Protocol will enable USDC to solve the challenges faced by users in transferring assets between networks.
According to a recent blog post by the Noble development team shared on Twitter by USDC issuer Circle, USDC will soon become available in the Cosmos ecosystem through the Noble network. While a specific date for USDC’s launch on the network was not disclosed by either Circle or Noble, both parties have encouraged readers to stay tuned for further updates.
Cosmos Ecosystem to Benefit From the Introduction of USDC
The Noble team’s announcement highlighted that USDC will be the first native, fiat-backed stablecoin that is both highly liquid and fully collateralized on a Cosmos Inter-Blockchain Communication Protocol-connected network.
The introduction of the fiat-backed stablecoin is expected to address many of the existing challenges that users face when attempting to bridge assets from one network to another.
Cosmos is an interconnected web of blockchain networks that utilize the Tendermint Byzantine fault-tolerant consensus protocol, Application Blockchain Interface, and Cosmos Software Development Kit. These networks are connected through the Inter-Blockchain Communication Protocol (IBC), enabling the transfer of assets between networks within the overall Cosmos ecosystem.
Noble is one of over 50 networks in the Cosmos IBC ecosystem, as noted by Mintscan. In an effort to promote user adoption of the ecosystem, Injective Protocol launched a $150 million fund in January, supported by firms known for investing in blockchain projects such as Kraken Ventures, Pantera Capital, and Jump Crypto. In February, the Cosmos Interchain Foundation also allocated $40 million to develop core infrastructure and applications for the ecosystem.
On the Flipside
- The long-term stability of fiat-backed stablecoins like USDC is dependent on external factors, including government policies and inflation rates, which would make them less reliable than decentralized cryptocurrencies.
- As more networks become connected through the Inter-Blockchain Communication Protocol, the adoption and widespread use of Cosmos and its related projects could become more likely.
Why You Should Care
The upcoming launch of USDC on the Noble network within the Cosmos ecosystem is the first native, fiat-backed stablecoin that is highly liquid and fully collateralized on a Cosmos IBC-connected network. This introduction is expected to solve the challenges faced by users when attempting to bridge assets from one network to another.
To learn more about the growing popularity of stablecoins in the crypto market, read here:
USDC Outflows Exceed $10B as Investors Flee to USDT
To stay up-to-date on the latest legal battles in the crypto industry, check out this article:
Binance Withdrawals in U.S. Disrupted Amid Legal Battles
Sourced from dailycoin.com.
Written by on 2023-03-30 18:00:00.
