On Tuesday, Circle, the issuer of the USDC stablecoin, pledged its full support for Ethereum’s transition to a proof-of-stake, or PoS, blockchain following the long-awaited update to The Merge. The company considers the merger to be an important milestone in scaling the Ethereum ecosystem, writing:
“The USDC has become a central building block for DeFi innovation on Ethereum. It has facilitated the adoption of Layer 2 solutions and helped broaden the set of use cases that today rely on the vast set of capabilities of Ethereum We understand our responsibility to the Ethereum ecosystem and the businesses, developers, and end users that depend on USDC, and we intend to do the right thing.”
USDC is currently both the largest dollar-backed stablecoin issued on Ethereum and the largest ERC-20 asset overall, with over $45 billion of market capitalization residing in the ecosystem at press time. Its reserves are audited at US financial institutions such as BlackRock.
Not like others, Circle went on to say that he does not expect any issues as the Ethereum blockchain begins its transition, stating:
“We do not anticipate any disruption to the capabilities of the USDC chain or our fully automated issuance and redemption services. Circle’s test environment is connected to the Ethereum Goerli testnet, and we will be closely monitoring it as it merges with Prater.” in the coming days”.
The company follows the lead of a growing number of firms ensuring the transition to the Ethereum blockchain when the merger is complete. The day before, Chainlink said that it would not support any proof-of-work forks after the upgrade. Due to the proximity of the upgrade, Ethereum’s layer two solution Optimism has seen its token skyrocket by over 300% based on merger speculation.
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