Algorand Foundation announced a new partnership with Circle as a step toward importing stablecoins to its blockchain. The new collaboration focuses on USD Coin (USDC) stablecoin that is a sull-reserve US Dollar cryptocurrency.
Algorand‘s partnership with Circle and adding USDC to the blockchain paved the way for the foundation’s primary goals. The foundation believes in a decentralized economy and tries to provide the tools needed to engage, educate, and enable the community toward a borderless one.
Circle company will start supporting digital dollar stablecoins interoperable with USDC as part of the new partnership with Algorand. This move means that Circle Business Account owners and the users or customers of Circle API can transfer funds between traditional financial systems and stablecoins on the Algorand blockchain.
“Customers will be able to have custody and manage accounts and payments activity through Circle APIs and gain the speed, security, and throughput advantages of Algorand’s blockchain,” according to Algorand.
Choosing USDC as the main stablecoin in the collaborative project between Algorand and Circle was mainly because of the scale and growth rate of this stablecoin. More than $940 million USDC is now in circulation that means a vast user base and clear growth opportunity for the cryptocurrency.
Circle tries to grow the real-world usage and have an impact on regular financial activities. The new partnership is on the way toward that goal, too.
“Growth in mainstream financial use cases is driving more demand for high-throughput payments and finance-optimized blockchain infrastructure,” said Jeremy Allaire, co-founder, and CEO of Circle. “The combination of USDC and Circle Platform Services with the Algorand blockchain will create a foundation for developing a wide range of scalable, secure, and compliant financial applications.”
Algorand Foundation and Circle will further promote USDC stablecoin and its use cases in the real world. The plans for this partnership include Circle developing API for transactions between USDC on Ethereum and Algorand blockchain.
“As more financial institutions and enterprises look to build decentralized financial applications, they need a well-suited infrastructure and a compliant, regulated, and widely accepted stablecoin,” said Fangfang Chen, COO of the Algorand Foundation.