Fantom revealed USDC.e., the canonical stablecoin.
Wormhole and Circle support the asset.
A crucial element in which Fantom offers advantages is liquidity.
With support from Wormhole and Circle, Fantom will introduce USDC.e, its official stablecoin, which could be advantageous for both consumers and developers. The Fantom Foundation announced on X (formerly Twitter) on April 4 that the USDC.e stablecoin will launch on April 5 with backing from Wormhole and stablecoin behemoth Circle.
We are excited to announce that Fantom’s canonical stablecoin, $USDC.e, will launch tomorrow (April 5), supported by @Circle and @Wormhole 🎉
USDC.e on Wormhole is bridged from native $USDC, located in a smart contract on Ethereum, and holds the potential to be upgraded to… pic.twitter.com/wr9hp83HPH
— Fantom Foundation (@FantomFDN) April 4, 2024
In the upcoming updates, the asset, bridged from USDC and hosted in an Ethereum smart contract, will officially assume the role of the stablecoin within the Fantom ecosystem. Eventually, this stablecoin can transition to become the native asset, having originated from USDC. This functions as a possible community-based benefit for the asset.
The announcement states that all USDC.e tokens will convert to USDC in the future under a deal between Circle and Fantom without a swap or developer address change.
The Fantom Emphasizes Liquidity
The stablecoin community has praised the decision to launch it on social media. Notably, in the midst of a tight market, the asset is added to the stablecoin list. According to the announcement, one of the primary use cases of stablecoin is the fragmentation of liquidity for users inside the ecosystem. The asset will utilize Wormhole’s Native Token Transfer (NTT) to enhance its availability throughout the ecosystem.
“With this approach, liquidity fragmentation is lessened, stability is introduced, and more on-ramps into the ecosystem are provided. The Wormhole Native Token Transfers (NTT) protocol will be utilized to make USDC.e accessible to all Fantom users and developers.”
Fantom will enhance asset liquidity on Wormhole, allowing users to link assets to the blockchain. This improvement will elevate the overall user experience. Consequently, users will feel motivated to transfer bridged assets into native USDC. This migration process benefits all parties involved. An agreement between the two platforms is pending.
For Developers and Users
Users can use Fantom’s stablecoin to trade, store, lend, borrow, and make payments with an emphasis on convenience and wider community connections. If developers address concerns by updating USDC, they can expand the stablecoin to include permanent contact addresses.
Although the community celebrates the accomplishment, some users consider how the USDC ecosystem will fare in the future. The partnership’s ability to link individuals from other platforms may increase Circle’s community participation.
