Circle, the company that issues the USDC stablecoin has announced its partnership with the Algorand Foundation to support USDC on non-Ethereum blockchains. According to the June 24 announcement, Circle has entered into a wide-ranging partnership with Algorand Foundation to bring fiat-backed stablecoin capability to the Algorand network, powered by USDC.
The partnership will enable Circle to add support for digital dollar stablecoins that are interoperable with USDC. This will allow users of Circle Business Accounts and Circle APIs to easily move funds between traditional banks and card networks to digital dollars on the Algorand blockchain. It will also enable them to gain the speed, security and throughput advantages of the Algorand blockchain.
Meanwhile, on that same June 24, Centre, the collaboration between Coinbase and Circle also released details on a framework for multi-chain support on USDC. This development is to allow other blockchains to leverage the foundation and standards that have been created behind USDC. The Circle and Algorand Foundation partnership will make Algorand the first blockchain with a stablecoin implementation based on the framework.
The framework announced by Centre commits to providing various levels of support to stablecoins built on Centre protocols commensurate with the obligations that developers must undertake. The company’s goal is to foster even broader adoption of Centre’s standards while maximizing the security of users’ funds.
The Algorand and Circle partnership leverages this framework and brings the benefits of USDC to a second blockchain. According to the announcement, the Algorand blockchain has demonstrated strong features and capabilities that are optimized for high-volume payments and financial applications.
Notably, the Algorand digital dollar stablecoin implementation is powered by USDC and will be fully collateralized by fiat reserves, available via Circle’s issuing and redemption services. It will be able to be seamlessly swapped with ERC-20 USDC via an USDC token bridge that is being operated by Circle.