- Circle has announced plans to launch USD Coin on Cosmos via the Noble network.
- The move will make USDC available to 50+ Cosmos IBC blockchains.
- USDC will be the first fiat-backed stablecoin on a Cosmos-connected network, highly liquid and fully collateralized.
In a recent blog post from the Noble development team, the network has announced plans to launch USD Coin (USD) in the Cosmos ecosystem through the Noble network, courtesy of stablecoin issuer Circle. The integration leverages a safe, seamless Inter-Blockchain Communication Protocol (IBC).
We are excited to announce that Noble is bringing native #USDC to the @Cosmos and boundless Inter-Blockchain Communication (IBC) ecosystem in partnership with @Circle! ✨ https://t.co/wLTDW3YNSz
— Noble (@noble_xyz) March 28, 2023
The post was shared on Twitter by USDC stablecoin issuer Circle, and while neither the issuer nor Cosmos gave the actual date when this debut will take place, they both asked users to “stay tuned.”
We're excited to bring USDC to @Cosmos! USDC is expected to launch on @noble_xyz soon, stay tuned for details. #IBC https://t.co/eqU8wno43F
— Circle (@circle) March 28, 2023
Noble is among more than 50 networks within the Cosmos IBC ecosystem.
The integration will fuel hundreds of millions of dollars in liquidity over the coming months in Cosmos. Additionally, it will seek to solve the challenges that users and app chains encounter when interacting with bridged assets sourced from other ecosystems.
In the future, Noble network expects hundreds of highly liquid, alongside the existence of well-adopted Cosmos blockchains. It should be noted that every blockchain requires a canonical and fungible version of USDC, which explains Noble’s ultimate existence.
Solutions for Cosmos users
In the announcement, the Noble team highlights USDC being the first “native, fiat-backed stablecoin that is highly liquid and fully collateralized” on a Cosmos Inter-Blockchain Communication Protocol-connected network. This narrative will change with Noble’s first issuance partner, Circle, a US-regulated fintech bringing USDC natively to Cosmos.
The team believes that integrating USDC, a fiat-backed stablecoin, into the Cosmos ecosystem will add value and solve many concerns of current Cosmos dealers. The solution focuses on challenges related to asset bridging from one network to another.
An excerpt from Noble’s announcement reads:
This integration will catalyze hundreds of millions of dollars in liquidity over the coming months in Cosmos and will seek to rectify the challenges that users and app chains face when interacting with bridged assets sourced from other ecosystems. […] Every blockchain needs a canonical and fungible version of USDC, and Noble exists to fulfill this critical need.
The official Cosmos website also attempts to explain the development, noting that Cosmos is an interconnected web of blockchain networks using the Tendermint Byzantine fault-tolerant consensus protocol, Application Blockchain Interface, and Cosmos Software Development Kit. The networks are interlinked via the IBC, allowing users to use assets between networks within the Cosmos ecosystem.
Cosmos on an expansion mission
Cosmos started the year with its arm stretched to welcome collaborations. In January, the Injective Protocol launched a $150 million fund towards promoting user adoption of the Cosmos ecosystem. The launch was supported by Kraken ventures, Pantera Capital, Jump Crypto, and several other companies reputed for their investment appetite into blockchain projects.
In February, Cosmos Interchain Foundation issued an additional $40 million to develop key ecosystem infrastructure and applications.
Cosmos price responds to the news
Cosmos price (ATOM) has reacted to the news, surging almost 5% to an auction for $11.23 at the time of writing.
ATOM/USDT 1-day chart
Trading activity in the ATOM market is also up 25% to $130.34 million, a sign of investor activity and increasing demand for the token.
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