In the family of Stablecoins, here comes the new member, USDC.e.
Fantom, a Direct Acyclic Graph (DAG) Smart Contract Platform, recently announced the launch of its Stablecoin USDC.e. This coin will be bridged to Circle’s native Stablecoin USDC and connect Fantom to the Ethereum blockchain. It is set to become the officially endorsed Stablecoin of Fantom Blockchain.
Stablecoins backed by the value of the U.S. Dollar play a significant role in curbing the investors’ risk. They can prove beneficial to investors in transacting their assets without the concern of market volatility. As the name implies, stablecoins remain stable and maintain their value throughout the transfer process.
USDC.e, like other Stablecoins, is launched with the vision to enable seamless cross-chain transfers and shield investors from market volatility. Moreover, the launch of this Stablecoin will also bootstrap the initial liquidity in the Fantom ecosystem.
However, this bridged USDC.e is quite different from the Native USDC.
While the native USDC is issued by Circle, a fintech company, on Ethereum Blockchain, USDC.e is issued by a third entity Wormhole/Fantom. Native USDC.e is directly backed by U.S. dollars and is always redeemable in 1:1. In contrast, USDC.e is backed by USDC, which means users can swap 1 USDC.e for 1 USDC and then can further redeem it for real USD.
Furthermore, Fantom Foundation also explains that once USDC gains a significant supply, adoption, and Dapp integration, Circle and Fantom may mutually decide to transfer the ownership of the bridged USDC contract to Circle. Upon obtaining ownership, Circle can upgrade USDC.e to native USDC while seamlessly retaining existing supply, holders, and dApp integrations. However, this upgrade wouldn’t require any token swap by users or a contract address upgrade by the developers.
