Compared to Ethereum’s approximate rate of 15 transactions per second (TPS), Solana offers over 50,000 TPS, which Circle CEO Jeremy Allaire told CoinDesk helps USDC function “at scale and in a highly performant condition.”
USDC was launched with the goal of creating technical and regulatory standards supervised by governments and regulators for a dollar-pegged money format and protocol, Allaire told CoinDesk. The stablecoin is “just now moving into the growth phase,” he added.
USDC and USDT, the two largest stablecoins by market capitalization, have been rapidly expanding across new blockchains throughout 2020 as both stablecoins aggressively pursue cross-chain growth strategies. This year, five new protocols have announced support for one or both of the leading stablecoins.
In early September, Tether also announced its planned integration with the “ultra high-speed” Solana blockchain.
Use cases for stablecoins now extend beyond simple trading and funds transfers, Allaire explained. Operating on multiple protocols is key for USDC to meet the needs of novel stablecoin use cases created by a burgeoning decentralized finance (DeFi) ecosystem.
Concurrent with its support on Solana, USDC announced a partnership with FTX; Serum, the exchange’s decentralized trading platform built on Solana; and Alameda research, the exchange’s sister company.
As to whether USDC will continue to expand to other blockchains, Allaire told CoinDSesk “absolutely,” noting there are “many credible blockchains” that could be considered in the future for USDC support.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.