The addition could reduce transaction costs and allow for faster transactions.
Coinbase has added support for USD Coin (USDC) on Stellar, the Stellar Development Foundation (SDF) said on June 23.
The announcement indicates that Coinbase will allow withdrawals and deposits of Circle’s stablecoin through the Stellar network.
SDF said that Coinbase’s support for USDC on Stellar will allow for faster and cheaper transactions. Specifically, USDC on Stellar can offer “near zero” transaction costs and can complete transactions in as little as five seconds.
SDF further stated that the addition will bring a “significant [on/off] ramp” to USDC as well as Stellar’s existing wallet, exchange and fintech operations.
Coinbase Assets acknowledged the feature in its own tweet. The company wrote that USDC on Stellar will make it “easier than ever to store and move money.”
USDC exists on multiple blockchains
Circle initially launched USDC on Stellar in February 2021. The USDC stablecoin also exists as a native asset on Ethereum, Solana, TRON, Avalanche, Hedera, Algorand, and Flow, and as a bridge asset on other chains.
Recently, Circle announced that it would create a native version of USDC for the Arbitrum blockchain, where it already exists as a bridge asset.
Unlike some of the early USDC releases, today’s news does not mean that USDC will exist on a new chain. Instead, it means that a major exchange, Coinbase, is starting to use USDC on an existing blockchain.