Hosting USDC on Algorand provides layer 1 scalability to the asset, along with a capability to undergo 1,000 transactions per second (TPS). Furthermore, it would cost less than one cent – 1/20th of a cent to be specific- to complete a transaction.
Algorand Inc.’s founder, Silvio Micali, said
“This is a defining milestone for frictionless mainstream payments as well as sophisticated financial applications. This launch brings together the convenience of USDC and an advanced protocol for global financial exchange in which Layer-1 smart contracts are as simple and secure as ordinary payments.”
Two years back USDC was rolled out as a US dollar backed stablecoin hosted on Ethereum blockchain, under the supervision of Centre Consortium, the core entity managing USDC related activities. In June 2020, Centre launched its Multichain USDC Framework, intending to view the token roll out on other chains along with original Ethereum powered token.
Alesia Haas, CFO of Coinbase said “Expanding USDC from Ethereum to additional blockchains like Algorand will ensure USDC has the flexibility to support everything from emerging DeFi projects to large-scale financial institutions. Today’s launch represents a significant improvement to USDC’s scalability, improving its utility and making it a significantly more useful protocol for solving real-world financial problems.”
Coinbase and Circle are co-founders of the Centre Consortium. USDC, rising in popularity, attained a market cap of $1 billion.