Circle’s USDC token will go native on Celo blockchain, pay for gas

Circle’s USD Coin (USDC) will launch natively on the Celo blockchain, the Celo Foundation has announced. Minting USDC on the blockchain will boost Celo’s use cases for real-world assets and enhance USDC’s convertibility into fiat currencies.

USDC will join Celo’s native proof-of-stake governance token, CELO (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 in an upcoming proposal on making USDC the gas currency for the ecosystem.

Mento Lab already issues the cUSD stablecoin on Celo, as well as other stablecoins such as the cEuro, cREAL (pegged to the Brazilian real) and eXOF (pegged to the West African CFA franc).

Celo positions itself as part of the regenerative finance movement and is carbon-neutral and mobile-first. It emphasizes mobile technology to improve the user experience in emerging economies. The Opera web platform launched its MiniPay wallet on Celo in September for African users with mobile phones. Circle senior business development manager Shamus Noonan said in a statement:

“This partnership will help broaden access for USDC and leverage Celo’s mobile-first user-base in regions where blockchain adoption is highest.”

The integration of USDC will also give institutional and enterprise users access to the Circle Mint on/off-ramp, which will enable greater activity on Celo, the Celo Foundation said. 

Related: Wallets with USDC stablecoin grew by 59% in 2023 despite circulation drop

USDC is the second-largest stablecoin with a market cap of $26.5 billion, following Tether (USDT), with a market cap of $96.1 billion. It reportedly filed for an initial public offering in the United States in mid-January.

1/ Native $USDC is coming to @Celo!

Celo is a mobile-first and EVM-compatible blockchain network that’s built for the real world and designed for fast, low-cost payments worldwide.

Explore what native USDC on Celo means for the ecosystem. https://t.co/ctUn9yWLDb

— Circle (@circle) January 30, 2024

Circle has been expanding its global reach. It was granted conditional registration as a virtual assets service provider in France in December. A month earlier, it partnered with Japanese financial services firm SBI to introduce USDC in that country. It has partnered with global payments processor Visa since 2020 and expanded cooperation using USDC issued on Ethereum and Solana in September.

Circle has also come under fire for alleged connections to money laundering — allegations it has denied.

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