Circle said on Wednesday that it plans to launch its USD coin (USDC) stablecoin – the second-largest dollar-backed stablecoin by market capitalization – natively on Cosmos in early 2023. Jelena Djuric, ecosystem lead at Cosmos Research, discusses what this means for the Cosmos ecosystem and decentralized finance.
Collateralized USDC is assuming a role formerly held by Terra’s algorithmic UST stablecoin – raising questions as to whether decentralized finance can mature with decentralized money at its core.
The paper cites interchain security and a new issuance model for ATOM as the keys to pulling the first Cosmos blockchain out of its yearslong identity crisis.