Announcing that it has allocated $200 million in funding for various DeFi projects, Avalanche, an Ethereum-rivaling smart contract blockchain has decided to include a native version of USDC – the stablecoin backed by cash and liquid cash equivalents that is administered by Boston-based Circle.

Being able to offer a solid stablecoin option, especially in the decentralized finance industry, is seen as a huge advantage in terms of claiming to be a competitor to Ethereum.

John Wu Avalanche

Until now, Avalanche users had to use a bridge over Ethereum for USDC transactions. Speaking on the subject, John Wu, chairman of the board of Ava Labs, said;

   “This partnership will allow USDC to be created and printed on Avalanche. This will allow users to get rid of the stress and some costs of buying and selling.”

Wu stated that the integration of USDC into Avalanche will "rock up" the DeFi projects on the network, and informed that approximately $1.3 billion USDC has come to Avalanche via bridges, which is also higher than the USDT that comes via the bridge.

   “The amount of USDC used on Avalanche is more than USDT… While USDT has a higher market cap, it is likely that US users trust USDC more”

After Hedera, Tron, Ethereum, Algorand, Stellar and Solana, Avalanche; It will be the 7th blockchain to incorporate USDC.

Joao Reginatto

Circle, a USDC issuer at the beginning of the year, announced that it plans to add the 2nd largest stablecoin to 10 more networks. Joao Reginatto, vice president of product development at Circle, said:

   “As we have observed in the past, there is never an immediate effect. A time gap occurs as a new entity enters the ecosystem. It also takes a few months for the adjustments to be made and the gears to work.”