The new year has only just gotten underway but USD Coin (USDC) has already crossed a significant milestone: $50 billion in market capitalization. Centre is proud to provide the standards that have enabled USDC to emerge as the trusted foundational layer of the crypto economy.
Since its launch in 2019, USDC has become a critical source of liquidity in a growing multi-chain ecosystem, growing by more than 10X in 2021. Already live on Ethereum, Algorand, Avalanche, Hedera, Stellar, Solana, TRON and most recently on Flow, with additional integrations to come, USDC enables fast, transparent, and secure transactions for individuals and institutions everywhere.
2021 was a year of widespread adoption for the crypto industry and for USDC. More and more people around the world became excited about the possibilities enabled by smart contracts on open, permissionless networks- unlocking tools for financial growth on DeFi, supporting artists and creators on NFT platforms, and finding ways to cross physical boundaries and build digital communities on Web3 platforms and in the metaverse. USDC supports all these initiatives by increasing the speed, efficiency, and security of payments around the world.
A vital part of Centre’s mission is a commitment to financial inclusion, and the growing network of USDC is a demonstration of that core value. Multi-chain USDC provides a global audience with avenues to unique opportunities for economic growth in crypto. DeFi protocols provide access to traditional financial services such as lending and yield-bearing accounts. NFT platforms connect creators directly to their fans, enabling them to build communities and receive a direct exchange of value for their work. Centre will also soon be introducing its first non-U.S. dollar backed stablecoin, allowing more people to transact in their sovereign currency and making access to crypto that much easier.
The expansion of the crypto economy has also drawn attention from regulators and policymakers, notably to stablecoins and Central Bank Digital Currencies (CBDCs) following the issuance of the President’s Working Group Report on Stablecoins and the Federal Reserve's Paper on a U.S. Central Bank Digital Currency. Centre continues to believe that private innovation will lead the way in this field, and we encourage the opportunity for thoughtful dialogue with all stakeholders to support regulation that encourages growth while providing consumer protection.
Exciting as this milestone may be, there is still much more to come. On the horizon is an initiative into the field of decentralized identity, undertaken with partners across the ecosystem, that will address many of the challenges faced by the industry around identity verification. Centre is very proud to be leading this work and we look forward to sharing the outcome with the crypto community in the coming weeks.
There will also be many opportunities for wider community engagement with Centre’s work, which will be a vital part of our future growth.
Here’s to the next $50 billion!