Introduction to the Upgrade
Native USDC on the Cosmos platform is set to receive a significant enhancement. Circle, the entity behind USDC, unveiled at the Cosmoverse conference its plans to integrate its cross-chain transfer protocol (CCTP) in collaboration with Noble, a protocol rooted in the Cosmos ecosystem.
Demonstration at Cosmoverse
During the event, Marcus Boorstin, Circle’s engineering director, showcased the CCTP’s capabilities for USDC transfers on the Cosmoverse main stage. He demonstrated a testnet transfer of funds from Avalanche to Noble via Metamask. This marks a pioneering move, as it’s the first instance of CCTP’s integration with a chain outside of the Ethereum Virtual Machine (EVM).
Simplicity and Integration
Jelena Djuric, Noble’s co-founder, emphasized the protocol’s user-friendly design, highlighting that USDC transfers can be executed in essentially a single click. Given Noble’s integration with the Cosmos Inter-blockchain communication protocol (IBC), the CCTP’s reach will span all Cosmos chains linked to the IBC. This integration eliminates the necessity for bridges when conducting USD Coin (USDC) transactions.
Insights from Noble’s Co-founder
Stefan Coolican, another co-founder of Noble, shared insights with Blockworks. He explained that users with USDC on EVM chains can now dispatch their tokens to Cosmos chains integrated with IBC without the need for a bridge. Detailing the process, Coolican stated,
“With CCTP live, users can send their USDC to a burn address on Ethereum. Circle’s API monitors this and will then issue a burn attestation that’s relayed to the destination chain.”
He further added that this method offers a swift and economical avenue for integrating native USDC into any application developed on Cosmos.
Market Presence and Future Plans
In terms of market presence, USDC stands as the second-largest stablecoin, boasting a circulating supply nearing $25 billion. A significant portion, approximately $20 billion, resides on Ethereum. The Cosmos ecosystem, as of now, doesn’t have a substantial stablecoin market, though it has been operational on the Cosmos mainnet since September 12.
Closing Remarks from Circle’s VP
Rachel Mayer, VP of product at Circle, conveyed to Blockworks the strategic importance of Noble in the Cosmos ecosystem. She said,
“Noble, as an asset issuance hub for Cosmos, facilitates the seamless spread of USDC throughout the ecosystem via IBC.”
She emphasized that with CCTP’s integration into Noble, they can address interoperability challenges between Cosmos and Ethereum, as well as other blockchain networks. This will empower developers to seamlessly onboard users with USDC to their applications from outside the Cosmos ecosystem.
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