There are many stablecoins already available on the Stellar network and in January 2021, USDC stablecoin will be supported as well.
USDC was previously available only on Ethereum and was later added to Algorand. This makes Stellar third blockchain to support it. USDC stablecoin is managed by Circle and Coinbase and its value is pegged to US dollar which means 1 USDC = 1 USD.
Stellar has near-zero fees and is much faster than Ethereum. Transactions are settled within 5 seconds on Stellar blockchain and cost 100 strops to send (0.00001 XLM). Stellar blockchain does not suffer from issues faced on Ethereum network – slow transaction speed and high fees.
Currently, there are 2.8B USDC in circulation. Circle, the company behind USDC has developed multichain USDC swap API that will allow developers to perform cross-chain swaps.
This means USDC tokens on Stellar will be able to move onto Algorand and from Algorand to Stellar easily. Multichain swaps are important in case there are liquidity issues on any of the supported blockchains.
USDC will be available on Stellar in January 2021! Check out the exclusive on @TechCrunch for more details on this stablecoin and our partnership with @centre_io and @circlepay here: https://t.co/M5nJO2dM4X
— Stellar (@StellarOrg) October 15, 2020
Stellar already has a USD stablecoin, USDX that is issued by Anchor USD. It is currently being used on Stellar decentralized exchanges and applications like Vibrant and Anchor USD’s own app. However, USDC will bring much more liquidity to Stellar.
