Router Protocol has announced a strategic partnership with USDC stablecoin issuer Circle.
This partnership aims to make USDC interoperable.
Coinbase recently asked users to switch from USDT to USDC.
Router protocol integrates with Circle
The Router Protocol, the infrastructure layer that enables communication between blockchains, announced on Monday, December 12, the testnet integration of Circle’s Cross-Chain Transfer Protocol, which makes USD Coin (USDC) interoperable. did.
In a press release shared with Coinjournal, Router Protocol said the integration is a major upgrade to its product suite. Thanks to the integration, volume and liquidity can be scaled quickly within the ecosystem, allowing the developer to integrate more smoothly with Router without pre-funding USDC liquidity on various blockchains. I can do it.
While commenting on this latest cryptocurrency newsRamani Ramachandran, CEO and co-founder of Router Protocol, said:
“Our product allows dapps to be multi-chained with just a few clicks. Cross-chain USDC takes this solution to the next level, enabling near-infinite liquidity for virtually any app.” .”
Router said it would have to maintain USDC liquidity on all chains of bridges, which would be costly and create security flaws. This has resulted in insufficient liquidity and unavailability at some chain destinations.
The team added that liquidity also needs to be incentivized, typically requiring token issuance. This unnecessarily dilutes the token supply and leaves the protocol at the mercy of liquidity farmers.
Circle’s cross-chain transfer protocol allows USDC transfers to be performed natively, improving capital efficiency and simplifying the user experience.
The team noted that the Cross-Chain Transfer Protocol is currently available on Ethereum and Avalanche testnets, with additional chains such as Solana following next year.
Router notes that this integration is happening on the testnet, and developers can allow users to move USDC between Ethereum’s Goerli testnet and Avalanche’s Fuji testnet.
Coinbase asks users to switch from USDT to USDC
Last week, cryptocurrency exchange Coinbase asked users to Switch USDT stablecoin to USDCAt the time, Coinbase said USDC was the more reliable and reputable stablecoin.
Router Protocol is building a suite of cross-chain communication infrastructure primitives aimed at seamlessly providing bridging infrastructure between current and emerging layer 1 and layer 2 blockchain solutions.