Fantom Launches Stablecoin with Circle, Wormhole Support

Fantom Launches Stablecoin with Circle, Wormhole SupportFantom Launches Stablecoin with Circle, Wormhole Support

Fantom Launches Stablecoin with Circle, Wormhole Support

Fantom announced the launch of USDC.e, a stablecoin backed by Circle and Wormhole, hosted on X (formerly Twitter).

Fantom will launch USDC.e, the canonical stablecoin, with support from Circle and Wormhole. This launch might potentially help both users and developers.

The Fantom Foundation announced on April 4 that the USDC.e stablecoin will roll out on April 5, with backing from stablecoin giants Circle and Wormhole.

X, formerly known as Twitter, hosted the announcement. There is a bridge between the USDC and the asset, which is located in an Ethereum smart contract.

The asset will eventually become the official stablecoin of the Fantom ecosystem, both in the present and in the future, during upgrades.

At some point in the future, we can upgrade the stablecoin from USDC to the native asset. This could benefit the asset along community lines, which is a potential advantage.

According to the publication, a future agreement between Circle and Fantom will automatically convert all USDC tokens to USDC without needing a swap or an update from the developer on addresses.

On many social media platforms, community members have expressed their approval of the decision to establish the stablecoin. Notably, the asset joins the list of stablecoins released in a bear market.

Fantom Stresses on Liquidity

Following publication, one of the most significant use cases for the stablecoin is the dispersion of liquidity for users inside the ecosystem.

The asset will utilize Wormhole’s Native Token Transfer (NTT) feature to enhance its availability throughout the ecosystem. Fantom will provide the liquidity for the Wormhole asset, enabling users to bridge assets to the blockchain and simplifying the experience overall.

“This initiative reduces liquidity fragmentation, introduces stability, and provides additional on-ramps onto the ecosystem. By leveraging the Wormhole Native Token Transfers (NTT) standard, USDC.e will be available to all users and developers on Fantom.”

In addition to assisting all parties involved in the process of liquidity migration, this will also encourage users to transfer the bridged assets into a native USDC.

This necessitates a future agreement between the two platforms. To facilitate borrowing, lending, trading, storing, and making payments, users can utilize Fantom’s stablecoin, which emphasizes ease of use and broader community connections.

If developers raise concerns, an upgrade to USDC could expand the stablecoin to include permanent contact addresses. Even though the community praises the achievement, some people are considering the potential advantages the USDC ecosystem will have in the future.

Because it brings together users from different platforms, the relationship can potentially increase Circle’s community participation. 

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