Circle, the company behind stablecoins like USDC and EURC, announced plans to launch its USD-pegged stablecoin on Celo, an Ethereum Virtual Machine (EVM)-compatible Layer 1 blockchain migrating to the Ethereum Layer 2 scaling network.
This move comes as part of a broader strategy to expand USDC's reach and leverage Celo's mobile-first user base in regions where blockchain adoption is highest. “Circle is proud to join the mission-driven Celo ecosystem as a blockchain known for enabling fast, low-cost payments around the world,” said Shamus Noonan, Circle Senior Manager of Business Development.
In addition to the token's local launch, an upcoming governance vote will determine whether USDC will serve as Celo's official gas fee currency. This decision could have significant impacts on the network's operations and user experience.
Celo started as an EVM-compatible Tier 1 with a focus on scalability. However, in July, cLabs, the company developing the project, proposed converting the network to the Ethereum Layer 2 scaling protocol. The proposal received a majority vote and was adopted towards the end of the same month.
*This is not investment advice.
