USDC Issuer Circle Adds Solana Support, But SOL Price Drops 10%

USDC issuer Circle is increasing its Solana support in the first half of 2023 with access to the Euro Coin (EUROC) project and its cross-chain transfer protocol.

According to a November 6 tweet, Circle, a global digital fintech firm and issuer of USDC, provided significant support for Solana. At the Solana breakpoint event, Circle announced the expansion of Euro Coin and its new permissionless cross-chain infrastructure (Cross-Chain Transfer Protocol) on Solana in the first half of 2023.

Circle spreads on Solana

Circle first launched a fully reserve, euro-pegged stablecoin called Euro Coin (EUROC) in June. Operating similar to USDC, the stablecoin currently runs on the Ethereum blockchain, and now Solana (SOL) will fall under that umbrella.

Sheraz Shere, Head of Payments, Solana Labs, said:

“The availability of EUR Coin on Solana unlocks new use cases for instant foreign exchange (FX), provides optionality for traders with a new base currency, allows EUR Coin lending and borrowing, and Will be available with USDC as payment currency in Solana.

Ergo, unlocking new opportunities for multi-currency digital finance and on-chain FX.

One of the most prominent digital asset exchanges, FTX, will support EUR Coin on Solana at launch. Other decentralized protocols, such as Radium and Soland, also lent their support.

Circle is also aiming to expand its cross-chain transfer protocol on Solana. Cross-chain infrastructure was announced without permission in September this year, but the light of day has not yet come.

It is set to go live on Ethereum (ETH) and Avalanche (AVAX) in early 2023 and will extend to Solana in the first half of 2023.

The protocol lets developers and crypto projects move USDC across various blockchains.

Joao Reginato, VP of Product at Circle, sheds more light on choosing Solana, saying:

“Solana is a logical next step for Euro Coin and cross-chain transfer protocols given the depth and breadth of their developer ecosystem. We are excited to see it launch early next year.”

These developments will strengthen the Solana ecosystem, but what about the price of its native asset, SOL? Just two days ago, on November 5th, Google Cloud revealed that it would become Solana validator.

Following this news, the price of SOL increased by about 15%, bringing its value closer to $40. However, at press time, SOL faced a 10% correction and is currently trading near $32.

Source: CoinMarketCap

Despite the rapid support from the ecosystem, SOL has a long way to go given its past difficulties.


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