Circle Internet Financial, which issues the USDC stablecoin, announced that it would be rolling out new ‘programmable wallets” which would make cryptocurrency-based payments more accessible for businesses.
In a release issued on August 8, 2023, the company stated that developers and merchants would be able to integrate or personalize these programmable wallets with their dApps and even add more value-added services. These services could include enabling customers to pay, accept and hold cryptocurrencies like the Top 10 cryptocurrencies and non-fungible tokens (NFTs).
Circle said that currently, a beta version of these wallets is available publicly on three blockchain networks — Polygon, Avalanche, and Ethereum. However, the company has plans to expand to other blockchains over the next few months.
Circle’s new product comes at a time when more crypto asset companies are exploring new opportunities with stablecoin payments. Stablecoins are a kind of cryptocurrency whose prices are anchored to another asset, usually the US dollar. According to reports, stablecoins are pegged to be a $128-billion asset class and form a key part of the DeFi infrastructure that connects traditional payment systems with the digital asset economy. They facilitate not just trading and transacting with digital assets but also the conversion of fiat currencies into cryptocurrencies.
In developing countries with nascent financial institutions and fragile currencies like Turkey and Argentina, millions of people see US dollar-pegged stablecoins as a haven and a dependable option to hold their assets and for remittances.
Circle CEO Jeremy Allaire believes said the launch of these programmable wallets was the first step in a larger plan to boost the company’s Web 3.0 services. Allaire said the launch would enable Circle to address common challenges faced by developers, reduce friction from value exchange and ensure seamless user experience while promoting the adoption of blockchain-based wallets. The development is likely to have little impact on live cryptocurrency prices.
Developed in 2018, the USD coin, or the USDC is a stablecoin that’s pegged to the US dollar. Each USDC coin that exists is backed by a $1 that’s stored in a reserve. The reserve is held as a mix of US treasury bonds and cash.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
